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 Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops and supports software, services, devices, and solutions. The one-month return of Microsoft Corporation (NASDAQ:MSFT) was 7.86%, and its shares gained 34.04% of their value over the last 52 weeks. On August 4, 2025, Microsoft Corporation (NASDAQ:MSFT) stock closed at $535.64 per share, with a market capitalization of $3.982 trillion.
RiverPark Large Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2025 investor letter:
“Microsoft Corporation (NASDAQ:MSFT): MSFT delivered strong second-quarter performance, aided by better-than-expected results and growing investor confidence in its enterprise AI strategy. In its April earnings release, Microsoft reported Azure growth of 31% year-over-year, its highest rate in over 18 months. The Productivity and Business Processes segment also performed well, supported by Microsoft 365, Teams, and Dynamics. Microsoft’s Build 2025 conference in May featured Copilot Studio updates and expanded integration of generative AI into its platform offerings.
Investor sentiment was supported by early evidence of monetization in its AI divisions, notably, GitHub Copilot, Microsoft 365, and Azure OpenAI services. Analysts noted a broad recovery in IT spending and increasing adoption of Microsoft’s end-to-end AI stack across enterprise verticals. The company’s strong balance sheet and operating leverage enabled continued reinvestment in innovation while delivering shareholder returns.
We continue to view Microsoft as a uniquely positioned platform business at the heart of enterprise software and cloud infrastructure. Its combination of scalable cloud services, productivity software, and embedded AI tools offers multiple durable growth drivers. With high recurring revenue, strong free cash flow, and disciplined capital allocation, we believe Microsoft remains a great long-term investment.”
A development team working together to create the next version of Windows.
Microsoft Corporation (NASDAQ:MSFT) is in second position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 284 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of the first quarter compared to 317 in the previous quarter. In the fourth quarter of fiscal year 2025, Microsoft Corporation (NASDAQ: MSFT) reported revenue of $76.4 billion, representing an 18% increase, or 17% when adjusted for constant currency. While we acknowledge the risk and potential of Microsoft Corporation (NASDAQ:MSFT) 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 MICROSOFT CORPORATION (NASDAQ:MSFT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Microsoft Corporation (NASDAQ:MSFT) and shared the list of AI stocks analysts are watching closely. 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.
