RiverPark Advisors, an investment advisory firm, and sponsor of the RiverPark family of mutual funds released its “RiverPark Large Growth Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund outperformed in the first quarter by returning 16.59%. The market also performed well with the S&P 500 index returning 7.50% and the Russell 1000 Growth index returning 14.37% in the same period. In addition, please check the fund’s top five holdings to know its best picks in 2023.
RiverPark Large Growth Fund highlighted stocks like Lululemon Athletica Inc. (NASDAQ:LULU) in the first quarter 2023 investor letter. Headquartered in Vancouver, Canada, Lululemon Athletica Inc. (NASDAQ:LULU) designs and distributes athletic apparel, footwear, and accessories. On May 8, 2023, Lululemon Athletica Inc. (NASDAQ:LULU) stock closed at $381.86 per share. One-month return of Lululemon Athletica Inc. (NASDAQ:LULU) was 4.39%, and its shares gained 26.40% of their value over the last 52 weeks. Lululemon Athletica Inc. (NASDAQ:LULU) has a market capitalization of $48.618 billion.
RiverPark Large Growth Fund made the following comment about Lululemon Athletica Inc. (NASDAQ:LULU) in its Q1 2023 investor letter:
“Lululemon Athletica Inc. (NASDAQ:LULU): We initiated a position in athletic apparel company Lululemon in the quarter. COVID-related supply chain bottlenecks led to over buying in 2022 resulting in a short-term inventory glut. This temporary issue gave us an opportunity to buy LULU’s stock at a historically low valuation.
LULU is a vertically integrated athletic apparel vendor focused on living a healthy and mindful lifestyle. The company, through its 655 stores and strong online presence (40% of sales), caters to affluent customers searching for both function and fashion. LULU has been a consistent innovator since its founding as a yoga brand in 1998 and currently offers an extensive array of men’s and women’s clothing options as well as yoga and fitness-related accessories. We believe that continued growth in the core women’s fitness category coupled with store growth, international expansion, and increased men’s sales can drive mid-teens revenue growth for the foreseeable future. The company’s vertical integration allows it to manage all aspects of the product cycle from design to manufacturing to sales, including when and how to discount excess inventory, which is a current focus. This vertical orientation also yields some of the best margins and free cash flow in the industry. We believe LULU can double revenue in the coming five years, which should lead to 150% EPS and free cash flow growth.”
Lululemon Athletica Inc. (NASDAQ:LULU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Lululemon Athletica Inc. (NASDAQ:LULU) at the end of the fourth quarter which was 57 in the previous quarter.
We discussed Lululemon Athletica Inc. (NASDAQ:LULU) in another article and shared the list of best stocks to buy and hold for 3 years. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 35 Best Comedy Movies on Netflix
- 35 Best Detective Movies on Netflix
- 25 Least Obese Countries in the World
Disclosure: None. This article is originally published at Insider Monkey.
