RiverPark Funds, an investment management firm, published its “RiverPark Large Growth Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. The RiverPark Large Growth Fund (the “Fund”) returned -3.23% for the third quarter of 2021, while its benchmarks, the S&P 500 Total Return Index (“S&P”) advanced 0.58%, the Russell 1000 Growth Total Return Index (“RLG”) returned 1.16%, while the Morningstar Large Growth Category returned -0.07%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
RiverPark Large Growth Fund, in its Q3 2021 investor letter, mentioned Snowflake Inc. (NYSE: SNOW) and discussed its stance on the firm. Snowflake Inc. is a Bozeman, Montana-based cloud computing-based data warehousing company with a $109.7 billion market capitalization. SNOW delivered a 29.63% return since the beginning of the year, while its 12-month returns are up by 11.95%. The stock closed at $364.78 per share on November 29, 2021.
Here is what RiverPark Large Growth Fund has to say about Snowflake Inc. in its Q3 2021 investor letter:
“Following torrid second quarter results, Snowflake, a position we initiated in March, was also a top contributor for 3Q. The company reported 103% year-over-year product revenue growth, 169% net revenue retention and a 74% non-GAAP gross margin, up 700 basis points year over year. Management also raised guidance to 92% product revenue growth for the full year.
Snowflake offers cloud-based data storage and analytics, generally termed “data warehouse-as-aservice.” The data warehousing market—created by the massive, growing amount of user, customer and account data and the need to search and analyze it—has historically stored its data on physical servers located on-premises. Incremental warehouse data capacity and renewals are expected to be stored off-premises on cloud servers, with more than 75% of databases projected to move to the cloud by 2022, resulting in a nearly $100 billion market.
Snowflake provides complex data management and analytical tools for its customers, eliminates the need for users to manage infrastructure, is fully scalable for each customer, and can be run on any of the Amazon, Microsoft, or Google cloud platforms. The company also has a unique, customer-aligned billing model based on usage. With the company’s capital expenditure-light model—Snowflake uses the public cloud for hosting—we expect FCF to grow much faster than revenue growth, which we forecast to grow comfortably more than 50% per year for the next several years. Additionally, we have great confidence in the SNOW management team, which previously had an enormously successful run guiding one of our other core Cloud software
holdings, ServiceNow.”
Based on our calculations, Snowflake Inc. (NYSE: SNOW) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SNOW was in 73 hedge fund portfolios at the end of the third quarter of 2021, compared to 70 funds in the previous quarter. Snowflake Inc. (NYSE: SNOW) delivered a 22.47% return in the past 3 months.
Disclosure: None. This article is originally published at Insider Monkey.
