RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q1 2026 investor letter. A copy of the letter can be downloaded here. The US stock market declined in the quarter with the S&P 500 index (“S&P”) and the Russell 1000 Growth index (“RLG”) falling 4.33% and 9.78%, respectively. Markets started the year positively but became volatile mainly due to increased tensions with Iran. The Federal Reserve kept rates unchanged in January and February. Still, rising energy prices and weaker economic data sparked concerns about stagflation, leading investors to rethink the timing and scale of future rate cuts. Investor sentiment shifted from growth and tech stocks amid inflation, interest rate, and supply chain concerns. Opposing AI-driven rotations heavily influenced investor sentiment, affecting growth stocks—enthusiasm grew for semiconductor firms linked to AI infrastructure spending, while enterprise software companies, viewed as vulnerable to AI disruption, faced pessimism. The Fund’s software holdings were sold off heavily, while the underweight in semiconductor companies, which benefited most from AI infrastructure spending, affected the performance. Despite challenges, the firm remains confident in the long-term prospects and valuations of its portfolio companies. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, RiverPark Large Growth Fund highlighted Lockheed Martin Corporation (NYSE:LMT) as a leading contributor. Lockheed Martin Corporation (NYSE:LMT) is a US-based aerospace and defense company that operates through Aeronautics; Missiles and Fire Control (MFC); Rotary and Mission Systems (RMS); and Space segments. On July 2, 2026, Lockheed Martin Corporation (NYSE:LMT) closed at $545.91 per share. One-month return of Lockheed Martin Corporation (NYSE:LMT) was 2.68%, and its shares gained 2.68% over the past 52 weeks. Lockheed Martin Corporation (NYSE:LMT) has a market capitalization of $125.87 billion.
RiverPark Large Growth Fund stated the following regarding Lockheed Martin Corporation (NYSE:LMT) in its Q1 2026 investor letter:
“Lockheed Martin Corporation (NYSE:LMT): LMT was a top contributor for the quarter, gaining 26% as the onset of the U.S.–Iran conflict in late February drove a significant re-rating of defense spending expectations. As U.S. military engagement escalated, investors rapidly repriced defense contractors higher on expectations of increased procurement activity, supplemental appropriations, and allied defense budget expansion. Lockheed’s position as the world’s largest defense contractor, with leading platforms in fighter aircraft (F-35), missile defense (PAC-3, THAAD), and rotary systems, made it a primary beneficiary of this sentiment shift. The company also reported solid Q4 2025 results during the quarter, with revenue and EPS in line with expectations and management reaffirming its mid-single-digit revenue growth and expanding margin outlook for 2026.
We continue to view Lockheed Martin as a high-quality franchise with durable earnings power, exceptional cash generation, and a long backlog providing multi-year revenue visibility. Its dominant positions across key U.S. defense platforms, consistent capital returns through dividends and buybacks, and exposure to secular growth in global defense spending make it a compelling long-term holding.”
Lockheed Martin Corporation (NYSE:LMT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 83 hedge fund portfolios held Lockheed Martin Corporation (NYSE:LMT) at the end of the first quarter, up from 59 in the previous quarter. While we acknowledge the risk and potential of Lockheed Martin Corporation (NYSE:LMT) 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 Lockheed Martin Corporation (NYSE:LMT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Lockheed Martin Corporation (NYSE:LMT) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q1 2026 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.
