In 2005, Investment Manager Jerome Dodson challenged the cosy consensus about what makes a great company to invest in. Now, eight years and 300 million dollars later, his peers know he was right.
The Parnassus Workplace Fund, which he established in April 2005, has been enormously, and enduringly successful. Since the fund’s inception it’s had a 9.6% annualised return. This compares to the S&P Index which has earned just 5.6% during the same period. And over the past five years--the height of the Great Recession--the Workplace Fund achieved an average annual return of an incredible 10.8%. The S&P Index for the same period was just 4%. His hunch? Create a fund that invests only in organisations where employees are really happy.