RiverPark Funds, an investment management firm, published its “RiverPark Large Growth Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. The RiverPark Large Growth Fund (the “Fund”) returned -3.23% for the third quarter of 2021, while its benchmarks, the S&P 500 Total Return Index (“S&P”) advanced 0.58%, the Russell 1000 Growth Total Return Index (“RLG”) returned 1.16%, while the Morningstar Large Growth Category returned -0.07%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
RiverPark Large Growth Fund, in its Q4 2021 investor letter, mentioned Shopify Inc. (NYSE: SHOP) and discussed its stance on the firm. Shopify Inc. is an Ottawa, Canada-based multinational e-commerce company with a $110.1 billion market capitalization. SHOP delivered a -36.40% return since the beginning of the year, while its 12-month returns are down by -31.97%. The stock closed at $876.00 per share on February 4, 2022.
Here is what RiverPark Large Growth Fund has to say about Shopify Inc. in its Q4 2021 investor letter:
“Shopify: SHOP shares were down modestly for 2H21, and we attribute the decline to the market environment rather than anything company specific, as Shopify’s fundamentals remain exceptional. The company reported $42 billion of merchandise sales, a 35% year-over-year increase, leading to 46% revenue growth to $1.1 billion for its 3Q. Subscription solutions revenue grew 37% year over year.
Last year, $120 billion (9%) of US retail e-commerce sales flowed through SHOP, which was second only to Amazon, and up from $61 billion for 2019. The company is still enjoying significant tailwinds as retail merchants of all sizes rapidly adopt SHOP’s software tools to display, manage and sell their products across a dozen different sales channels. We believe that the overall growth of e-commerce, combined with the development of new products and services at SHOP, will continue to drive revenue growth of about 50% per year over the next several years, accompanied by continued operating margin expansion.”
Photo by Roberto Cortese on Unsplash
Our calculations show that Shopify Inc. (NYSE: SHOP) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SHOP was in 73 hedge fund portfolios at the end of the third quarter of 2021, compared to 85 funds in the previous quarter. Shopify Inc. (NYSE: SHOP) delivered a -42.67% return in the past 3 months.
In January 2022, we also shared another hedge fund’s views on SHOP in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
