RiverPark Funds, an investment management firm, published its “RiverPark Long/Short Opportunity Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The RiverPark Large Growth Fund (the “Fund”)’s institutional shares returned -25.78% for the first quarter of 2022, while its benchmarks, the S&P 500 Total Return Index (“S&P”) declined by -4.60%, the HFRI Equity Hedge Index returned -3.86%, while the Morningstar L/S Equity Category returned -2.75% for the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, RiverPark Long/Short Opportunity Fund mentioned Teladoc Health, Inc. (NYSE:TDOC) and explained its insights for the company. Founded in 2002, Teladoc Health, Inc. (NYSE:TDOC) is a Harrison, New York-based multinational telemedicine and virtual healthcare company with a $9.0 billion market capitalization. Teladoc Health, Inc. (NYSE:TDOC) delivered a -39.02% return since the beginning of the year, while its 12-month returns are down by -67.23%. The stock closed at $55.99 per share on April 25, 2022.
Here is what Greenhaven Road Capital has to say about Teladoc Health, Inc. (NYSE:TDOC) in its Q1 2022 investor letter:
“Teladoc is the largest telehealth provider in the US and has recently begun to expand internationally. TDOC’s platform enables an ever-expanding list of patient-doctor interactions (including those for primary health care, mental health issues and chronic condition management) to transition from an on-site visit to one that can be done remotely with full video- based interaction. TDOC provides its platform of services on both a business-to-business and direct-to-consumer basis, through monthly subscription-based relationships. For its core business-to-business clients, the company contracts with a wide range of entities, including large scale employers (the company currently contracts with over 50% of the Fortune 500), health plans, health systems, and medical insurance companies, which currently cover more than 50 million members. For these customers, the company provides a win-win-win, as patients spend no time traveling and less time waiting, doctors are more efficient seeing more patients in less time, and payers (employers and plan sponsors) save money while being able to offer a highly popular additional benefit for their employees. This B to B market is projected to be a +$100 billion market opportunity and TDOC is the clear global market leader. For its direct-to- consumer clients, the company provides a growing suite of services for individuals to have affordable access to on-demand and scheduled medical services, for which their current insurance does not provide reimbursement (such as extended mental health counseling).
Although the company has been growing steadily for well over a decade, the business has transformed over the past few years as the COVID pandemic caused a significant increase in the demand for virtual healthcare. In addition, the company’s 2020 acquisitions of Livongo, the leader in virtual chronic condition management, and InTouch a competitive telehealth platform, materially broadened the company’s product offerings. At its recent analyst day, management guided to 25-30% top line growth for each of the next three years, exiting 2024 with more than $4 billion in annual revenue. The company also anticipates expanding margins by 100-150 basis points per year in each of the next three years, while still accelerating its investments in marketing and R&D. As with many of our recent purchases, we took advantage of the decline in the company’s shares (down a breathtaking 70% from its 2021 high of almost $300 per share) to establish a small position in Teladoc.”
Minerva Studio/Shutterstock.com
Our calculations show that Teladoc Health, Inc. (NYSE:TDOC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Teladoc Health, Inc. (NYSE:TDOC) was in 39 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 40 funds in the previous quarter. Teladoc Health, Inc. (NYSE:TDOC) delivered a -16.98% return in the past 3 months.
In April 2022, we also shared another hedge fund’s views on Teladoc Health, Inc. (NYSE:TDOC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
