RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q1 2026 investor letter. A copy of the letter can be downloaded here. The US stock market declined in the quarter with the S&P 500 index (“S&P”) and the Russell 1000 Growth index (“RLG”) falling 4.33% and 9.78%, respectively. Markets started the year positively but became volatile mainly due to increased tensions with Iran. The Federal Reserve kept rates unchanged in January and February. Still, rising energy prices and weaker economic data sparked concerns about stagflation, leading investors to rethink the timing and scale of future rate cuts. Investor sentiment shifted from growth and tech stocks amid inflation, interest rate, and supply chain concerns. Opposing AI-driven rotations heavily influenced investor sentiment, affecting growth stocks—enthusiasm grew for semiconductor firms linked to AI infrastructure spending, while enterprise software companies, viewed as vulnerable to AI disruption, faced pessimism. The Fund’s software holdings were sold off heavily, while the underweight in semiconductor companies, which benefited most from AI infrastructure spending, affected the performance. Despite challenges, the firm remains confident in the long-term prospects and valuations of its portfolio companies. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, RiverPark Large Growth Fund highlighted Eli Lilly and Company (NYSE:LLY). Eli Lilly and Company (NYSE:LLY) is a leading pharmaceutical company headquartered in Indianapolis, Indiana, that develops, manufactures, and markets human pharmaceutical products. On July 2, 2026, Eli Lilly and Company (NYSE:LLY) closed at $1,213.91 per share. One-month return of Eli Lilly and Company (NYSE:LLY) was 5.84%, and its shares gained 53.39% over the past 52 weeks. Eli Lilly and Company (NYSE:LLY) has a market capitalization of $1.08 trillion.
RiverPark Large Growth Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q1 2026 investor letter:
“Eli Lilly and Company (NYSE:LLY): LLY was a top detractor for the quarter, declining 14% as the pharmaceutical sector faced an intensifying regulatory and pricing policy environment. The Trump administration’s continued push to codify “most favored nation” (MFN) drug pricing into law raised concerns about long-term U.S. revenue growth, and the expiration of Novo Nordisk’s semaglutide patent in India in March 2026 opened the door for generic GLP-1 competition in emerging markets, adding to broader investor concerns about pricing power. Importantly, however, Lilly had already acknowledged and anticipated these price headwinds, with management guiding that price would be a drag on GLP-1 revenue growth in the low-to-mid teens range. At the same time, volume growth for Mounjaro and Zepbound is substantially outpacing these price declines, with demand continuing to exceed supply across global markets.
We continue to view Eli Lilly as one of the highest-quality growth franchises in global healthcare. Its leadership in obesity, diabetes, and Alzheimer’s disease, robust patent portfolio, and expanding global manufacturing capacity support a multi-year trajectory of strong revenue and free cash flow growth. With volume-driven GLP-1 expansion more than offsetting manageable price headwinds, and a pipeline across oncology and neuroscience providing significant additional optionality, we view the current dislocation as an attractive opportunity to own one of the world’s premier growth franchises.”
Eli Lilly and Company (NYSE:LLY) ranks 16 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 132 hedge fund portfolios held Eli Lilly and Company (NYSE:LLY) at the end of the first quarter, compared to 137 in the previous quarter. While we acknowledge the risk and potential of Eli Lilly and Company (NYSE:LLY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Eli Lilly and Company (NYSE:LLY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Eli Lilly and Company (NYSE:LLY) and shared the list of billionaire Cliff Asness’ top healthcare stock picks. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
