RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets surged in the second quarter, with the S&P 500 Total Return Index rising 10.94% and the Russell 1000 Growth Index returning 17.84%. The fund also surged in the quarter and returned 15.01%. Continued enthusiasm for artificial intelligence, better-than-expected earnings in several large-cap growth sectors, and improving macroeconomic conditions lifted the markets in the quarter. Growth-focused stocks took the lead once more, with the strongest performance coming from sectors like technology, communication services, and certain areas of consumer discretionary. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, RiverPark Large Growth Fund highlighted stocks such as Starbucks Corporation (NASDAQ:SBUX). Based in Seattle, Washington, Starbucks Corporation (NASDAQ:SBUX) engages in the roasting, marketing, and retail of coffee globally. The one-month return of Starbucks Corporation (NASDAQ:SBUX) was -5.44%, and its shares gained 19.12% of their value over the last 52 weeks. On August 4, 2025, Starbucks Corporation (NASDAQ:SBUX) stock closed at $89.78 per share, with a market capitalization of $102.053 billion.
RiverPark Large Growth Fund stated the following regarding Starbucks Corporation (NASDAQ:SBUX) in its second quarter 2025 investor letter:
“Starbucks Corporation (NASDAQ:SBUX): SBUX shares declined during Q2 following disappointing earnings in late April. Global same-store sales declined 4%, driven by a 6% drop in North America and flat results in international markets. Traffic trends turned negative, and operating margins compressed to 11.6%, down from 18% a year earlier. Management cited macro headwinds, competitive pressure, and weaker-than-expected loyalty engagement.
The stock continued to slide through May and June as investors grew skeptical of the pace and effectiveness of turnaround efforts. Management acknowledged that customer traffic softness may take multiple quarters to resolve, and analysts lowered near-term earnings forecasts. Despite continued investment in digital and labor, visibility into a meaningful recovery remains limited.
We continue to believe Starbucks is an incredibly valuable consumer franchise with strong brand equity and long-term pricing power. The company’s global scale, loyalty ecosystem, and real estate footprint provide strategic advantages. While near-term results remain challenged, we see significant upside once comps stabilize and customer engagement improves.”
A close-up of a freshly roasted coffee bean, accompanied by a vintage aluminum scoop.
Starbucks Corporation (NASDAQ:SBUX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Starbucks Corporation (NASDAQ:SBUX) at the end of the first quarter, compared to 84 in the previous quarter. In the third quarter of fiscal 2025, Starbucks Corporation (NASDAQ:SBUX) recorded a revenue of $9.5 billion, marking a 4% increase compared to the previous year. While we acknowledge the risk and potential of Starbucks Corporation (NASDAQ:SBUX) 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 STARBUCKS CORPORATION (NASDAQ:SBUX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Starbucks Corporation (NASDAQ:SBUX) and shared the list of stocks Jim Cramer shared his views on. In addition, please check out our hedge fund investor letters Q2 2025 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.
