RiverPark Funds on NVIDIA (NVDA): “We Expect Future Growth to Remain Robust”

RiverPark Funds, an investment management firm, published its “RiverPark Long/Short Opportunity Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The RiverPark Large Growth Fund (the “Fund”)’s institutional shares returned -25.78% for the first quarter of 2022, while its benchmarks, the S&P 500 Total Return Index (“S&P”) declined by -4.60%, the HFRI Equity Hedge Index returned -3.86%, while the Morningstar L/S Equity Category returned -2.75% for the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, RiverPark Long/Short Opportunity Fund mentioned NVIDIA Corporation (NASDAQ:NVDA) and explained its insights for the company. Founded in 1993, NVIDIA Corporation (NASDAQ:NVDA)  is a Santa Clara, California-based multinational technology company with a $458.9 billion market capitalization. NVIDIA Corporation (NASDAQ:NVDA)  delivered a -37.39% return since the beginning of the year, while its 12-month returns are up by 20.17%. The stock closed at $184.15 per share on April 27, 2022.

Here is what RiverPark Long/Short Opportunity Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:

Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.

We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”



Our calculations show that NVIDIA Corporation (NASDAQ:NVDA) ranks 13th on our list of the 30 Most Popular Stocks Among Hedge Funds. NVIDIA Corporation (NASDAQ:NVDA) was in 110 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 83 funds in the previous quarter. NVIDIA Corporation (NASDAQ:NVDA) delivered a -16.08% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on NVIDIA Corporation (NASDAQ:NVDA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.