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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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RiverPark Long/Short Opportunity Fund 2023 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (RiverPark Long/Short Opportunity Fund)

Primary Source Intelligence • Q2 2023 Letter Analysis

RiverPark Long/Short Opportunity Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, RiverPark Long/Short Opportunity Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+10.6%

Annualized+6.37%

Positioning StanceConstructive

GeographyUS

Digest Analysis

Quick Take

"Led by Magnificent Seven tech holdings including Meta, Amazon, and Microsoft. The fund owns secular growth companies at deep discounts to 2021-2022 highs, focusing on AI, e-commerce, and payments themes."

Executive Summary

RiverPark Long/Short Opportunity Fund delivered strong Q2 2023 performance with a 10.6% return, driven primarily by technology holdings including six of the Magnificent Seven stocks. The fund's core thesis centers on owning secular growth companies that suffered recession-like selloffs in 2022 but now trade at deep discounts to intrinsic value. Key themes include AI/cloud computing through holdings like Microsoft, Alphabet, and Meta; e-commerce via Amazon and Shopify; and digital payments through PayPal and Uber. The manager reduced macro hedges during the quarter as inflation data improved and soft-landing scenarios became more likely, shifting to more targeted shorts against specific companies with flawed business models. Top contributors included Meta, Shopify, Uber, Amazon, and Intuitive Surgical, while detractors included homebuilder shorts, Illumina, Disney, PayPal, and Nike. The fund ended the quarter 93.8% long and 25.9% short for 67.9% net exposure. The manager believes the portfolio is well-positioned for continued outperformance given the quality of holdings and attractive valuations relative to 2021-2022 peaks.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

78%

CautiousHigh

High Conviction (78%)

High conviction evidenced by concentrated portfolio with named, sized positions (top 10 holdings represent 39.9% of assets). Manager provides detailed thesis for each major holding, adds to positions like Illumina during weakness, and uses declarative language about long-term prospects. The fund structure allows for concentrated bets on secular themes.

Growth Outlook

60%

BearishBullish

Neutral (60%)

The manager expresses constructive optimism about markets, noting that a soft-landing scenario is now more likely and that Fed-induced slowdowns have been pushed out to 2024. However, this is balanced with acknowledgment of ongoing risks in housing and potential economic pressures.

Risk Appetite

45%

DefensiveAggressive

Balanced (45%)

The fund reduced both gross and net exposure during the quarter (from 100.4% to 93.8% long, 69.8% to 67.9% net), indicating a modest pullback in risk appetite. The manager took profits in some cyclical shorts but added new targeted shorts, showing selective rather than aggressive positioning.

Capital Deployment

43%

De-riskingDeploying

Net Neutral (43%)

Modest capital pullback with gross exposure declining from 100.4% to 93.8% long and net exposure falling from 69.8% to 67.9%. The manager took profits in some positions and reduced others, indicating slight de-risking rather than aggressive deployment.

Forward Guidance

50%

CautiousExpansionary

Neutral (50%)

The manager expresses confidence in the portfolio's positioning for future performance but doesn't indicate aggressive deployment plans. The tone suggests maintaining current positioning rather than scaling up or down significantly.

Language Signal

65%

BearishBullish

Bullish (65%)

Language is predominantly positive with terms like 'amazing portfolio,' 'well positioned,' 'attractive valuations,' and 'deep discount to intrinsic values.' Risk language is present but balanced, focusing more on opportunities than threats.

Perceived Risk

35%

Low RiskElevated

Moderate Risk (35%)

Moderate risk acknowledgment with specific mentions of housing price declines, Fed rate hike pressures, and economic slowdown risks. However, risks are not central to the letter's narrative and are balanced with improving macro conditions and soft-landing scenarios.

Opportunity Density

70%

ScarceAbundant

Abundant (70%)

Manager sees abundant opportunities in secular growth companies trading at attractive valuations. The letter emphasizes having a 'deep bench of attractively valued strong growers' and describes the portfolio as 'amazing,' suggesting a rich opportunity set in their focus areas.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

Multi-year investment horizon evidenced by focus on secular themes, long-term growth prospects, and willingness to add to positions during weakness. Manager discusses 3-5 year outlooks for several holdings and emphasizes long-term competitive advantages and market opportunities.