RiverPark Advisors, an investment advisory firm, and sponsor of the RiverPark family of mutual funds released its “RiverPark Large Growth Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund outperformed in the first quarter by returning 16.59%. The market also performed well with the S&P 500 index returning 7.50% and the Russell 1000 Growth index returning 14.37% in the same period. In addition, please check the fund’s top five holdings to know its best picks in 2023.
RiverPark Large Growth Fund highlighted stocks like RingCentral, Inc. (NYSE:RNG) in the first quarter 2023 investor letter. Headquartered in Belmont, California, RingCentral, Inc. (NYSE:RNG) is a software-as-a-service solutions provider. On May 9, 2023, RingCentral, Inc. (NYSE:RNG) stock closed at $26.50 per share. One-month return of RingCentral, Inc. (NYSE:RNG) was -8.56%, and its shares lost 61.31% of their value over the last 52 weeks. RingCentral, Inc. (NYSE:RNG) has a market capitalization of $2.564 billion.
RiverPark Large Growth Fund made the following comment about RingCentral, Inc. (NYSE:RNG) in its Q1 2023 investor letter:
“RingCentral, Inc. (NYSE:RNG): Despite better-than-expected 4Q results and strong profitability guidance for 2023, RNG shares were a top detractor for the quarter following lower than expected revenue guidance for the full year 2023. Investor concerns appear to be centered around the competitive dynamics in the space. We continue to believe that RNG remains far ahead of its competition in both product breadth and depth in what is an enormous market. RNG has consistently maintained its #1 product ranking by Gartner for Large Enterprises and continues to expand its channel partnerships with large scale telecom services firms including Alcatel-Lucent, Atos, Avaya and Mitel, giving the company a significant leg up in converting on-premises PBX customers.
RingCentral is the largest and fastest growing pure play Unified Communications as a Service (UCaaS) vendor. Traditionally, business communications have been comprised of on-premises hardware-based private branch exchanges (PBX), which primarily support voice-only desktop phones. These systems do not support employees who now communicate from anywhere with any device, using voice, video, text, messaging and social media. UCaaS encompasses solutions addressing all these needs in a capital and labor light model for customers. RNG is the UCaaS market leader with two million users in an extremely fragmented market and is growing rapidly. The company started in the small-and-medium business market and has migrated to also serving larger enterprises, helped by its channel partnerships. The company’s increasing scale from its growing recurring revenue should improve operating margins, allowing the company to achieve its long-term target of 20%-25% while also generating increasing FCF (which is expected to grow 150% this year).”
RingCentral, Inc. (NYSE:RNG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held RingCentral, Inc. (NYSE:RNG) at the end of the fourth quarter which was 41 in the previous quarter.
We discussed RingCentral, Inc. (NYSE:RNG) in another article and shared RiverPark Large Growth Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 10 Biggest Clothing and Footwear Manufacturers
- Top 15 Live Entertainment Companies in the World
- Goldman Sachs’ Top 15 Stock Picks for 2023
Disclosure: None. This article is originally published at Insider Monkey.
