Parnassus Mid Cap Fund Q3 2026 Portfolio Review

Cboe Global Markets gained on strong growth in derivatives, cash equities and data services, while Dick’s Sporting Goods fell after a weaker-than-expected quarter and near-term earnings pressure from losses at recently acquired Foot Locker. The article also notes that Formula One Group holds exclusive commercial rights to the single global Formula One championship; it provides no valuation or financial figures.

Analysis

CBOE’s mix of derivatives, cash-equity and data growth is more durable than a single-volume spike only if data subscriptions and recurring activity hold up when volatility normalizes. The near-term risk is paying for cyclical trading activity as though it were structural; watch business-line growth and operating leverage in the next report. DKS has a more specific risk: Foot Locker losses can absorb the benefit of the acquisition and distract management from the core business. The key variable is whether acquired-store economics improve fast enough to offset the drag—not simply whether consolidated sales grow. Over 1–3 months, guidance and disclosures on Foot Locker profitability are likely to matter more than the deal rationale; over 6–18 months, persistent losses would raise execution and capital-allocation concerns. A counterpoint is that weak results may already reflect transition costs, so avoid treating one quarter as proof of a failed integration. Formula One’s rights scarcity may support pricing power, but scarcity alone does not establish attractive returns: rights costs, audience demand and renewal terms determine how much value accrues to the rights-holder. Without financial or valuation detail, this is a structural observation, not a standalone trade signal.

Key Decisions for Investors

• CBOE: Consider initiating or adding on market weakness only if subsequent disclosures confirm growth is broad-based and data-services demand remains firm. Reassess if activity-led growth reverses or recurring data growth weakens; the downside case is multiple compression as cyclical volumes fade.
• DKS: Keep exposure cautious; do not average down solely on the assumption that Foot Locker losses are temporary. Treat improving acquired-business profitability and stable forward guidance as confirmation before adding. Persistent losses, further guidance cuts, or evidence of continued operating deterioration would falsify the recovery case.
• Relative positioning: A modest long-CBOE/short-DKS expression may suit investors seeking to lean toward stronger operating momentum, but the businesses have different sector drivers, so size it as a company-specific relative-value trade rather than a hedge. Revisit if CBOE growth proves volume-dependent or DKS shows clear Foot Locker stabilization.
• Formula One: No direct position from the scarcity thesis alone. Monitor rights-renewal economics, audience trends and cost commitments; stronger pricing without disproportionate rights-cost escalation would support the structural case, while weaker demand or costly renewals would undermine it.