RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, markets performed well, and the S&P 500 index (“S&P”) and the Russell 1000 Growth Index returned 8.7% and 12.8%, respectively. The RiverPark Large Growth Fund Institutional and Retail shares also performed well in the quarter returning, 13.2% and 13.2%, respectively. The macroeconomic environment continued to support the portfolio beyond the company-specific news. In addition, please check the fund’s top five holdings to know its best picks in 2023.
RiverPark Large Growth Fund highlighted stocks like Autodesk, Inc. (NASDAQ:ADSK) in the second quarter 2023 investor letter. Headquartered in San Francisco, California, Autodesk, Inc. (NASDAQ:ADSK) offers 3D design, engineering, and entertainment technology solutions. On September 5, 2023, Autodesk, Inc. (NASDAQ:ADSK) stock closed at $219.46 per share. One-month return of Autodesk, Inc. (NASDAQ:ADSK) was 7.17%, and its shares gained 6.44% of their value over the last 52 weeks. Autodesk, Inc. (NASDAQ:ADSK) has a market capitalization of $46.913 billion.
RiverPark Large Growth Fund made the following comment about Autodesk, Inc. (NASDAQ:ADSK) in its Q2 2023 investor letter:
“Autodesk, Inc. (NASDAQ:ADSK): Autodesk was our next top detractor despite quarterly results reported in late May that were in line with expectations. For 1Q, revenue grew 12%, Remaining Performance Obligation (RPO) grew 15%, and the company generated $714 million of FCF, which increased 69% year over year. Profitability for the company was strong, with a 32% non-GAAP operating margin for the quarter, and management reiterated its outlook for the year.
Autodesk has a near monopoly on software for designing, building, and managing buildings, as well as software for infrastructure and manufacturing plants, prototyping software for manufacturers of products (including autos, machinery, and consumer products) and document sharing. As a result, we believe ADSK’s business is very sticky. The company expects to grow revenue mid-teens annually over the next several years, and, as we have seen in similar SaaS businesses, as revenue scales, operating margins are expected to expand significantly from their current 32% to more than 40%, more in-line with peers. We believe that ADSK shares can grow along with its mid-teens free cash flow growth over the next several years.”
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Autodesk, Inc. (NASDAQ:ADSK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Autodesk, Inc. (NASDAQ:ADSK) at the end of second quarter which was 57 in the previous quarter.
We discussed Autodesk, Inc. (NASDAQ:ADSK) in another article and shared the list of biggest technology companies. In addition, please check out our hedge fund investor letters Q2 2023 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.
