The story for the FANGs hasn’t been all negative: Amazon doubled its profit margins and more than doubled earnings estimates in its second quarter and anticipated third-quarter profits well above analysts’ prior estimates. Apple also beat earnings estimates, rising to more than $1 trillion in total market capitalization.

The valuation concerns and recent volatility may have some investors looking for alternatives, both active and passive, that avoid or alleviate concentration in high-growth areas of the market.

“There’s no doubt that the FANGs are good companies, but they’re so highly valued we’re concerned they’ll struggle to provide good long-term returns,” said Ahlsten. “We prefer to target stocks that will grow cash flow and earnings with less volatility. Outperformance comes from avoiding the permanent loss of capital.”

On the active side, a seasoned stock picker should be able to help investors navigate away from the FANG trade. Such a solution might be found in the Parnassus Core Equity Fund (PRBLX), a $15.6 billion active mutual fund managed by Ahlsten.

“Hire us because you want active share,” said Ahlsten. “In effective active share, managers are selecting businesses with more narrow range of outcomes, and over the long term it helps to avoid significant downside. You’re avoiding paying too high a price for companies and you’re avoiding companies prone to disruption.”

PRBLX’s 37 holdings averaged $120 billion in market cap as of June 30, compared to the $217 billion average market cap of the S&P 500. The fund is slightly less volatile than its benchmark index.

Ahlsten picks large-cap stocks that have a wide moat againts competition and are available at relatively low prices. Among his favorite stocks are Gilead Sciences, which is a pioneer in drugs treating HIV, cancer and liver disease, and media stalwart Disney, which trades at 14 times its forward earnings.

“We also like 3M, a fantastic company producing films and adhesives used in products throughout our economy,” said Ahlsten. “3M stock is down 25 percent form its peak, you can buy it at 18 times its forward earnings, and they’ve increased dividends for years on end.”

Another forward-looking stalwart targeted by Ahlsten is Clorox, which he likens to a “Silicon Valley version of Procter & Gamble” because it is focusing resources on researching cleaner, more efficient and more valuable products.

At the same time, Ahlsten is divesting from companies where risks are increasing, like McKesson, which was dropped due to risks surrounding opioid drugs, and Wells Fargo, which Parnassus divested from after a long period of shareholder engagement over sales practices and consumer privacy issues.