RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, markets performed poorly, and the S&P 500 index (“S&P”) and the Russell 1000 Growth Index (RLG) declined -3.27% and -3.13%, respectively and Institutional Class (RPX) declined -4.11%. Year to date, RPX has returned 26.59% compared to the SPX and the RLG’s 13.07% and 24.98% returns, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2023.
RiverPark Advisors highlighted stocks like PepsiCo, Inc. (NASDAQ:PEP) in the third quarter 2023 investor letter. Based in Purchase, New York, PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, and distributes beverages, food, and snacks. On November 16, 2023, PepsiCo, Inc. (NASDAQ:PEP) stock closed at $167.71 per share. One-month return of PepsiCo, Inc. (NASDAQ:PEP) was 4.82%, and its shares lost 7.51% of their value over the last 52 weeks. PepsiCo, Inc. (NASDAQ:PEP) has a market capitalization of $230.578 billion.
RiverPark Advisors made the following comment about PepsiCo, Inc. (NASDAQ:PEP) in its Q3 2023 investor letter:
“PepsiCo, Inc. (NASDAQ:PEP): PepsiCo is a leading global beverage and snack food company with a portfolio of brands, including Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream. The company, through its operations, authorized bottlers, contract manufacturers and other third parties, makes, markets, distributes and sells a wide variety of beverages and snack foods, serving customers and consumers in more than 200 countries and territories.
PEP, through acquisitions, marketing, and product innovation has reinvigorated top line expansion and is now expected to grow revenues in the mid-single digit percent rate for the foreseeable future. We expect this revenue growth to drive margin expansion and free cash flow growth from $5.6 billion in 2022 to $12.3 billion in 2028. Based on this more than doubling of free cash flow and the company’s 2.8% dividend yield, we believe we can achieve double digit rates of return from the stock regardless of the economic environment ahead. We initiated a small position in August.”
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PepsiCo, Inc. (NASDAQ:PEP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held PepsiCo, Inc. (NASDAQ:PEP) at the end of second quarter which was 70 in the previous quarter.
We discussed PepsiCo, Inc. (NASDAQ:PEP) in another article and shared the list of dividend kings with the highest dividend yields. In addition, please check out our hedge fund investor letters Q3 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.
