RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, markets performed well, and the S&P 500 index (“S&P”) and the Russell 1000 Growth Index returned 8.7% and 12.8%, respectively. The RiverPark Large Growth Fund Institutional and Retail shares also performed well in the quarter returning, 13.2% and 13.2%, respectively. The macroeconomic environment continued to support the portfolio beyond the company-specific news. In addition, please check the fund’s top five holdings to know its best picks in 2023.
RiverPark Large Growth Fund highlighted stocks like NIKE, Inc. (NYSE:NKE) in the second quarter 2023 investor letter. Headquartered in Beaverton, Oregon, NIKE, Inc. (NYSE:NKE) designs and develops athletic footwear, apparel, equipment, and accessories. On September 5, 2023, NIKE, Inc. (NYSE:NKE) stock closed at $100.32 per share. One-month return of NIKE, Inc. (NYSE:NKE) was -8.54%, and its shares lost 7.52% of their value over the last 52 weeks. NIKE, Inc. (NYSE:NKE) has a market capitalization of $153.487 billion.
RiverPark Large Growth Fund made the following comment about NIKE, Inc. (NYSE:NKE) in its Q2 2023 investor letter:
“NIKE, Inc. (NYSE:NKE): NKE shares were a top detractor in the quarter following FY3Q earnings and guidance that disappointed investors. NIKE generated 19% constant currency revenue growth, reduced excess inventory, had strong China sales, and delivered better than expected earnings of $0.79 (investors were looking for $0.64). Despite this, a 330 basis point decline in gross margins and disappointing FY4Q guidance, including continued gross margin declines and a surprise increase in SG&A, pressured the stock.
Nike is, by far, the leading athletic footwear, apparel, and equipment company in the world with over $50 billion in revenue, $4.5 billion in 2022 annual free cash flow, and over $11 billion of excess cash. We believe that over the long term, the global secular growth trend towards active wear will continue to aid Nike’s top-line growth, while we expect gross and operating margin improvements as it shifts its product mix to more premium products and adopts a more direct to consumer approach, driving long-term mid-teens or higher annual EPS growth for the foreseeable future. In the short term, we believe the company will continue to make progress working though the excess inventory the company amassed last year, similar to most US retailers, as COVID-slowed supply chains re-opened and stock-outs turned into supply gluts.”
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NIKE, Inc. (NYSE:NKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held NIKE, Inc. (NYSE:NKE) at the end of second quarter which was 81 in the previous quarter.
We discussed NIKE, Inc. (NYSE:NKE) in another article and shared the list of stocks ranked in accordance with the hedge fund bullishness index. In addition, please check out our hedge fund investor letters Q2 2023 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.
