RiverPark Funds, an investment management company, released its “RiverPark Large Growth Fund” third quarter 2022 investor letter — a copy of which can be downloaded here. For the quarter, the RiverPark Large Growth Fund (the “Fund”) lost 3.3% – a bit better than the S&P 500 (-4.9% for the quarter) and about in line with the Russell 1000 Growth index (-3.6% for the quarter). Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, RiverPark Large Growth Fund mentioned Intuit Inc. (NASDAQ:INTU) and explained its insights for the company. Founded in 1983, Intuit Inc. (NASDAQ:INTU) is a Mountain View, California-based business software company with a $121.7 billion market capitalization. Intuit Inc. (NASDAQ:INTU) delivered a -32.83% return since the beginning of the year, while its 12-month returns are down by -29.01%. The stock closed at $432.08 per share on October 25, 2022.
Here is what RiverPark Large Growth Fund has to say about Intuit Inc. (NASDAQ:INTU) in its Q3 2022 investor letter:
“We took advantage of its 2022 price decline to add a small position in Intuit. INTU is a leading SaaS software solutions provider to small businesses, consumers, and professional accountants, best known for its QuickBooks accounting and TurboTax tax preparation platforms. INTU recently strengthened its personal finance offerings with the acquisitions of Mint and Credit Karma, and its small business offering with the acquisition of email marketing platform Mailchimp. The company is benefitting from the secular shift to digitization for both businesses and consumers. Given its vast amount of valuable personal finance and tax customer data from its 100 million + customer installed base, the company can apply artificial intelligence to the data to generate actionable intelligence for customers, as well as a large cross-selling opportunity across its products.
Given INTU’s less than 5% penetration of its $300 billion market, we believe the company can grow its top-line mid-teens, while improving its high-margin business model of greater than 80% gross margins and greater than 35% EBITDA margin, leading to high-teens EPS growth for the foreseeable future. At about 2% of revenue, the company also requires limited capital expenditures, producing significant and growing FCF, which INTU has used for acquisitions, a small dividend, debt repayment and stock buybacks.”
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Our calculations show that Intuit Inc. (NASDAQ:INTU) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Intuit Inc. (NASDAQ:INTU) was in 75 hedge fund portfolios at the end of the second quarter of 2022, compared to 82 funds in the previous quarter. Intuit Inc. (NASDAQ:INTU) delivered a 4.31% return in the past 3 months.
In September 2022, we also shared another hedge fund’s views on Intuit Inc. (NASDAQ:INTU) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.
