RiverPark Large Growth Fund Q1 Investor Letter

RiverPark Advisors recently published investor letters to discuss performance of its funds – River Park Focused Value, River Park Growth Fund, River Park High Yield Fund, and River Park Opportunity Fund – for the first quarter of 2018. In this article, we’re focusing on the RiverPark Large Growth Fund, which returned 2.6% for the first quarter, compared to 0.8% by the S&P 500 index and 1.4% by the Russell 1000 Growth index.

According to the fund, its portfolio remains well balanced by company, industry and theme.

“For the last several months, we have materially diversified the portfolio by trimming some of our better-performing and largest positions, (especially those in the internet media and ecommerce space that have performed exceptionally well but where the regulatory noise has been increasing) including Facebook, Adobe, Google, Amazon, eBay and Apple while adding eight new core holdings to the portfolio in a set of broader industries (Adidas, Ulta Beauty, Cabot Oil & Gas, IQVIA, Northrop Grumman, UnitedHealth Group, Oracle and Salesforce.com). We have also exited or materially reduced our positions in a few of our smaller holdings that had more levered balance sheets and/or less robust fundamentals (such as Southwestern Energy, Realogy and Chipotle). As of the end of 1Q18, the portfolio is slightly more diversified (38 names v. 36) and a bit less concentrated (the portfolio’s top ten holdings represent 37% of the portfolio v. 41% a year ago and the top twenty names represent 65% of the portfolio v. 71% at the end of 1Q17),” according to the letter.

There are some important points in the letter that value investors would love to know. We’ll discuss some of those points shortly in a couple of articles. In the meantime, you can download a copy of the letter here.