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%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
RiverPark Large Growth Fund, in its Q4 2021 investor letter, mentioned SoFi Technologies, Inc. (NASDAQ: SOFI) and discussed its stance on the firm. SoFi Technologies, Inc. is a San Francisco, California-based online personal finance company with a $9.5 billion market capitalization. SOFI delivered a -24.7% return since the beginning of the year, while its 12-month returns are down by -48.53%. The stock closed at $11.89 per share on February 4, 2022.
Here is what RiverPark Large Growth Fund has to say about SoFi Technologies, Inc. in its Q4 2021 investor letter:
“SoFi Technologies: During 3Q, we purchased a small position in SoFi, a neobank or digital bank, operating exclusively online without any physical branches. The company provides a comprehensive consumer finance product suite including credit cards, student loan refinancing, mortgages, personal loans and automated investing. SoFi has a $2 trillion dollar market opportunity by taking share from incumbent banks (such as Wells Fargo and Bank of America), as the incumbents have first generation technology, and the younger generation generally prefer digital banks.
Despite impressive 3Q results, SOFI shares struggled along with other fast-growing technology stocks. SOFI added 377,000 new customers in the quarter, it’s second-highest quarterly increase in its history. The company increased its total products sold by 108%, and its revenue by 28%. SoFi also reported $10 million of EBITDA for a 3.6% margin and increased its revenue and adjusted EBITDA guidance for the year. We expect the company to grow revenue by more than 30% annually for the next several years and grow its margin by cross-selling more profitable products—with low or no customer acquisition costs–and increasing scale, leading to profit growth of more than 50% annually for the foreseeable future. We know the SOFI management team well from previous positions over the past two decades and have great confidence in their ability to execute on this enormous growth potential.”
Photo by Scott Graham on Unsplash
Our calculations show that SoFi Technologies, Inc. (NASDAQ: SOFI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SOFI was in 33 hedge fund portfolios at the end of the third quarter of 2021, compared to 39 funds in the previous quarter. SoFi Technologies, Inc. (NASDAQ: SOFI) delivered a -47.32% return in the past 3 months.
In December 2021, we also shared another hedge fund’s views on SOFI in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
