RiverPark Advisors, an investment advisory firm, and sponsor of the RiverPark family of mutual funds released its “RiverPark Large Growth Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned 2.41% in the fourth quarter compared to a 7.56% return for the S&P 500 Total Return Index and a 2.20% return for the Russell 1000 Growth Total Return Index. In 2022, the fund declined by 47.37% compared to -18.11% and -29.14% fall for the S&P 500 and the Russell 1000 Growth Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2022.
RiverPark Large Growth Fund highlighted stocks like Netflix, Inc. (NASDAQ:NFLX) in the Q4 2022 investor letter. Headquartered in Los Gatos, California, Netflix, Inc. (NASDAQ:NFLX) is a streaming platform. On February 10, 2023, Netflix, Inc. (NASDAQ:NFLX) stock closed at $347.36 per share. One-month return of Netflix, Inc. (NASDAQ:NFLX) was 4.37%, and its shares lost 11.23% of their value over the last 52 weeks. Netflix, Inc. (NASDAQ:NFLX) has a market capitalization of $154.696 billion.
RiverPark Large Growth Fund made the following comment about Netflix, Inc. (NASDAQ:NFLX) in its Q4 2022 investor letter:
“Netflix, Inc. (NASDAQ:NFLX): NFLX was also a top contributor for 4Q. The company reported better-than-expected subscriber additions for 3Q and provided strong 4Q guidance. Netflix added 2.4 million subscribers in the quarter, beating the Street’s expectation of 1.1 million added subscribers, and management guided to 4.5 million subscriber additions for 4Q, above expectations for 4.1 million.
We believe that 2022 was an inflection year for Netflix as the company became free cash flow (“FCF”) positive during 1Q22 and FCF should scale from here (management guided to $1 billion FCF for 2022). A combination of strategic initiatives, price increases and a stabilization of content investment should position the company for high-single digit annual revenue growth, while driving improved operating margin to more than 25% over the next few years. Revenue grew 6% for 3Q22 and operating margin was 19%, up from 10% in 2018. In addition to its opportunities in TV and movie streaming, the company recently launched a mobile gaming service that opens an additional $100 billion-plus market for future growth.”
Photo by Souvik Banerjee on Unsplash
Netflix, Inc. (NASDAQ:NFLX) is in 19th position on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 115 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the third quarter, which was 95 in the previous quarter.
We discussed Netflix, Inc. (NASDAQ:NFLX) in another article and shared the list of companies and industries that make money during a recession. In addition, please check out our hedge fund investor letters Q4 2022 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.
