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The RiverPark Lengthy/Brief Alternative Fund (RLSIX) (RLSFX) (the “Fund”) returned 10.36% within the second quarter, versus the S&P 500 Complete Return Index, which returned 10.94%. For the yr, the Fund was up 4.00% in comparison with the S&P Complete Return Index, which was up 6.20%.
Second Quarter 2025 Efficiency Abstract
| Efficiency: Internet Returns as of June 30, 2025 | |||||||
|---|---|---|---|---|---|---|---|
| PresentOuarter | 12 months toDate | OneYear | Three12 months | FiveYear | TenYear | SinceInception | |
| Institutional Shares (RLSIX) | 18.50% | 5.58% | |||||
| Retail Shares (RLSFX) | 18.32% | 5.37% | 6.20% | ||||
| Morningstar L/S Fairness Class | 4.92% | 4.08% | 8.40% | 9.16% | 8.18% | 4.80% | 4.55% |
| S&P 500 ((SP500), (SPX)) Complete Return Index | 6.20% | 15.16% | 13.65% | 14.03% |
Annualized efficiency since inception of the Mutual Fund (3/30/2012) was 4.94% for RLSIX and 4.74% for RLSFX. The efficiency quoted for intervals previous to March 30, 2012 is that of RiverPark Alternative Fund, LLC (the “Predecessor Fund”). The inception date of the Predecessor Fund was September 30, 2009. The efficiency of the Predecessor Fund contains the deduction of precise charges and bills, which had been greater than the charges and bills charged to the Fund. Though the Fund is managed in a materially equal method to its predecessor, the Predecessor Fund was not a registered mutual fund and was not topic to the identical funding and tax restrictions because the Fund. Efficiency proven for intervals higher than one yr are annualized. Index efficiency returns don’t replicate any administration charges, transaction prices, or bills. Indexes are unmanaged and one can not make investments instantly in an Index. Morningstar L/S Fairness Class Returns sourced from Morningstar Principia. The efficiency quoted herein represents previous efficiency. Previous efficiency doesn’t assure future outcomes. The funding return and principal worth of an funding will fluctuate in order that an investor’s shares, when redeemed, could also be value kind of than their authentic value, and present efficiency could also be greater or decrease than the efficiency quoted. For efficiency knowledge present to the newest month finish, please name 888.564.4517. Expense Ratio: Institutional: 1.89% gross and 1.85% internet, Retail: 2.17% gross and a pair of.00% internet as of the newest prospectus, dated January 28, 2025. Gross Expense Ratio doesn’t replicate the power of the adviser to get better all or a portion of prior waivers, which might end in greater bills for the investor. Please reference the prospectus for extra info. |
Markets had been buoyed by continued enthusiasm for synthetic intelligence, better-than-expected earnings in a number of large-cap progress sectors, and bettering macroeconomic circumstances. Whereas the rally remained led by a comparatively slim set of corporations, the tone throughout markets was constructive as traders gained confidence in each the tempo and sturdiness of U.S. financial enlargement.
Development-oriented equities as soon as once more led the cost, with management concentrated in know-how, communication companies, and components of shopper discretionary. Defensive sectors similar to well being care and staples, in contrast, lagged as value pressures, softening quantity tendencies, and regulatory overhangs weighed on sentiment.
Earnings season through the quarter was typically constructive, with many corporations exceeding expectations on each income and margins. The Federal Reserve held rates of interest regular all through the quarter and reiterated a data-dependent stance amid ongoing disinflation. Whereas the outlook for near-term price cuts was pushed additional into the long run, markets took this in stride,
Markets additionally skilled transient however notable volatility through the quarter because the Trump administration launched new tariff proposals focusing on a broad vary of imports. Headlines in Might round common tariffs and expanded duties on Chinese language items led to a brief pullback, notably in sectors with world provide chains; nevertheless, markets rapidly stabilized. We proceed to imagine that whereas commerce coverage might contribute to short-term volatility, long-term fairness efficiency will stay pushed by innovation, margin enlargement, and sturdy earnings progress.
General, our longs contributed 13.89% and our shorts harm us by -2.96%.
Within the brief e book, we proceed to concentrate on companies that we imagine are dropping aggressive market share, which have enterprise fashions we imagine are flawed or are dealing with cyclical headwinds (together with subscale web media, residential actual property, cyclical industrial and shopper lending). As well as, we use choose ETFs now and again to handle publicity.
We began the third quarter 93.80% lengthy, 18.70% brief, and 75.10% internet. We ended the quarter with extra gross publicity and fewer internet publicity at 92.48% lengthy, 20.72% brief, and 71.76% internet.
Beneath we describe a few of our prime and backside performers.
Portfolio Assessment
Prime Contributors
| Prime Contributors to Efficiency for theQuarter Ended June 30, 2025 | % Affect |
|---|---|
| NVIDIA Corp (NVDA). (lengthy) | |
| Microsoft Corp (MSFT). (lengthy) | |
| Netflix (NFLX), Inc. (lengthy) | 1 28% |
Portfolio Attribution is produced by RiverPark Advisors, LLC (RiverPark), the Fund’s adviser. Though RiverPark believes that its attribution methodology adheres to typically accepted requirements within the trade, attribution evaluation just isn’t a precise science and completely different methodologies might produce completely different outcomes. Efficiency Attribution is proven gross of charges. Holdings are topic to alter. |
NVIDIA: NVDA was the portfolio’s prime contributor through the second quarter of 2025. The corporate reported fiscal Q1 2026 ends in late Might, with income of $44.1 billion, up 69% year-over-year, and robust progress throughout all key segments. Knowledge Middle income rose 73% to $39.1 billion, whereas Gaming income climbed 42% to $3.8 billion. Although export-related stock expenses impacted gross margins, core profitability remained sturdy, and working margins continued to increase. Administration additionally issued upbeat ahead steerage, with expectations of $44–47 billion in fiscal Q2 income.
Throughout the quarter, NVIDIA strengthened its management place in accelerated computing by means of robust demand for its Hopper structure and the upcoming Blackwell platform. The corporate highlighted new demand from sovereign AI infrastructure, automotive functions, and enterprise inference workloads. Investor enthusiasm was sustained regardless of short-term volatility linked to U.S. export restrictions, as NVIDIA’s dominance in AI infrastructure remained clear.
We proceed to view NVIDIA as probably the most strategically essential enabler of worldwide AI transformation. Its GPU management, ecosystem lock-in by means of CUDA, and quickly increasing use circumstances for its services and products, place it for robust multi-year progress. Whereas geopolitical danger and valuation might result in near-term volatility, the corporate’s structural benefits and free money stream profile help our long-term conviction.
Microsoft: MSFT delivered robust second-quarter efficiency, aided by better-than-expected outcomes and rising investor confidence in its enterprise AI technique. In its April earnings launch, Microsoft reported Azure progress of 31% year-over-year, its highest price in over 18 months. The Productiveness and Enterprise Processes section additionally carried out nicely, supported by Microsoft 365, Groups, and Dynamics. Microsoft’s Construct 2025 convention in Might featured Copilot Studio updates and expanded integration of generative AI into its platform choices.
Investor sentiment was supported by early proof of monetization in its AI divisions, notably, GitHub Copilot, Microsoft 365, and Azure OpenAI companies. Analysts famous a broad restoration in IT spending and rising adoption of Microsoft’s end-to-end AI stack throughout enterprise verticals. The corporate’s robust steadiness sheet and working leverage enabled continued reinvestment in innovation whereas delivering shareholder returns.
We proceed to view Microsoft as a uniquely positioned platform enterprise on the coronary heart of enterprise software program and cloud infrastructure. Its mixture of scalable cloud companies, productiveness software program, and embedded AI instruments presents a number of sturdy progress drivers. With excessive recurring income, robust free money stream, and disciplined capital allocation, we imagine Microsoft stays an ideal long-term funding.
Netflix: NFLX posted robust positive aspects through the quarter, pushed by wholesome subscriber progress and accelerating contributions from its ad-supported tier. The corporate reported stable income progress and better-than-expected profitability, with working margins persevering with to pattern towards the high-20s. Netflix added 32 million gross subscribers globally within the first half of the yr, and its ad-tier reached over 90 million customers. Momentum in reside programming and sports activities helped increase engagement throughout markets.
Strategically, Netflix continues to enhance its monetization mannequin by broadening its content material combine, increasing into reside occasions, and rising its promoting income. Administration guided to bettering free money stream and stronger working leverage going ahead. Buyers responded positively to the platform’s capability to steadiness world progress, pricing energy, and improved content material effectivity.
We imagine Netflix stays some of the compelling platforms in digital media. Its world subscriber base, increasing margins, and disciplined content material spending create a strong engine for earnings progress. With rising scale in promoting and an increasing model portfolio, Netflix continues to signify a high-quality progress alternative.
Prime Detractors
| Prime Detractors From Efficiency for theQuarter Ended June 30, 2025 | % Affect |
|---|---|
| UnitedHealth Group (UNH) Inc. (lengthy) | |
| Apple Inc (AAPL). (lengthy) | |
| Invesco (IVZ) OOO Belief Collection I (brief) |
| Portfolio Attribution is produced by RiverPark Advisors, LLC (RiverPark), the Fund’s adviser. Though RiverPark believes that its attribution methodology adheres to typically accepted requirements within the trade, attribution evaluation just isn’t a precise science and completely different methodologies might produce completely different outcomes. Efficiency Attribution is proven gross of charges. Holdings are topic to alter. |
UnitedHealth Group: UNH was the portfolio’s weakest performer in Q2. The corporate’s Q1 outcomes, reported in April, confirmed 5% income progress however declining earnings as medical value ratios rose to 84.8%. Greater-than-expected utilization in outpatient procedures, notably amongst Medicare Benefit and Medicaid sufferers, pressured margins. The corporate subsequently lowered full-year steerage throughout its June investor replace.
The inventory offered off sharply in response to issues that elevated utilization tendencies may persist by means of year-end. Margin compression, mixed with regulatory uncertainty round Medicare Benefit rate-setting, weighed closely on investor sentiment. Promote-side analysts revised estimates downward, highlighting near-term earnings danger.
Regardless of the short-term volatility, we proceed to view UnitedHealth as one of many strongest franchises in healthcare. The corporate’s built-in mannequin, combining insurance coverage, pharmacy advantages, and care supply, positions it nicely for long-term worth creation. We count on utilization to normalize over the subsequent 12-18 months and imagine UNH’s earnings energy stays intact over a multi-year horizon.
Apple: AAPL underperformed in Q2 regardless of reporting stable outcomes. The corporate posted income of $95.4 billion and EPS of $1.65, with progress in each iPhone and Companies. Nonetheless, investor response to Apple’s AI roadmap, unveiled at WWDC in June, was combined. Whereas Apple launched a number of new on-device AI options beneath its “Apple Intelligence” initiative, the market seen the rollout as extra incremental in comparison with friends.
Considerations round aggressive positioning in generative AI, notably relative to extra aggressive methods from different tech leaders, contributed to weak point within the inventory. Moreover, tender China demand and FX headwinds continued to behave as modest overhangs.
We imagine Apple’s long-term worth proposition stays compelling. Its put in base of over 2 billion energetic units offers a basis for recurring companies progress and platform monetization. The corporate’s AI technique, although cautious, emphasizes safety and system efficiency, key differentiators which will resonate with customers over time. With sturdy free money stream and continued capital return, we stay assured in Apple’s positioning.
Invesco QQQ Belief: Our wanting QQQ, an ETF that tracks the NASDAQ 100 Index, which is comprised of the 100 largest non-financial corporations within the NASDAQ, was a prime detractor within the quarter. Our brief was a hedge in opposition to a pointy decline within the know-how sector, after an enormous run within the quarter, with out having to promote shares of our longs.
Prime Ten Lengthy Holdings
Beneath is an inventory of our prime ten lengthy holdings as of the tip of the quarter:
| Holdings | % ofInternet Belongings |
|---|---|
| NVIDIA Corp. | 6.9% |
| Microsoft Corp. | 6.8% |
| Apple Inc. | 6.0% |
| Meta Platforms (META), Inc. | 4.2% |
| Amazon (AMZN).com, Inc. | 4.1% |
| Alphabet ((GOOG,GOOGL)) Inc (GOOG,GOOGL). | 4.0% |
| Netflix, Inc. | 3.3% |
| Eli Lilly (LLY) & Co. | 3.2% |
| Uber (UBER) Applied sciences, Inc. | 3.1% |
| Shopify (SHOP) Inc. | 3.1% |
| 44.9% | |
Holdings topic to alter. |
Beneath is an inventory of the important thing secular themes represented on either side of our portfolio as of the tip of the quarter.
| Lengthy Portfolio Themes | Brief Portfolio Themes | ||
|---|---|---|---|
| AI/Cloud Computing | 17.5% | Cyclical Industrial | 3.3% |
| Web Media | 11.4% | European Equities | 2.1% |
| E-Commerce | 7.2% | Legacy Enterprise Companies | 1.7% |
| Content material Streaming | 6.3% | Client Lending | 1.6% |
| Cell Compute | 6.0% | Industrials | 1.4% |
| Different Asset Managers | 5.0% | Residential Actual Property | 1.4% |
| Funds | 4.8% | Software program | 1.4% |
| Software Software program | 4.7% | Market Indexes | 1.3% |
| Rides/Supply | 3.8% | On-line Journey Company | 1.0% |
| Semiconductors | Well being Golf equipment | 0.9% | |
| It is a consultant (non-exhaustive) listing of our largest present lengthy and brief themes. Holdings topic to alter. | 3.6% |
Abstract
We imagine the RiverPark Lengthy/Brief Alternative Fund’s versatile mandate and disciplined inventory choice course of are nicely suited to navigate the present surroundings. Our lengthy e book is anchored by high-quality companies with robust fundamentals and secular progress drivers, whereas our brief e book stays targeted on corporations with deteriorating financials, unsustainable enterprise fashions, or extreme valuations.
We’re dedicated to producing enticing risk-adjusted returns by means of all market cycles and thanks to your continued belief and partnership.
Sincerely,
Conrad van Tienhoven, Portfolio Supervisor
Efficiency by means of and Publicity as of June 30, 2025
| Interval | RLSIX | MorningstarL/S Fairness | S&P 500Complete Return | Contribution | Publicity* | ||||
|---|---|---|---|---|---|---|---|---|---|
| Lengthy | Brief | Lengthy | Brief | Gross | Internet | ||||
| 02 2025 | 10.4% | 4.9% | 10.9% | 13.9% | 91.4% | 20.8% | 112.3% | 70.6% | |
| YTD 2025 | 4.0% | 4.1% | 6.2% | 6.3% | 92.8% | 19.9% | 112.7% | 73.0% | |
| 1 12 months | 9.2% | 8.4% | 15.2% | 15.7% | 93.3% | 21.3% | 114.5% | 72.0% | |
| 3 12 months | 18.5% | 9.2% | 19.7% | 23.8% | 96.3% | 24.0% | 120.3% | 72.3% | |
| 5 12 months | 8.2% | 16.6% | 4.5% | 103.7% | 30.6% | 134.3% | 73.1% | ||
| 10 12 months | 5.6% | 4.8% | 13.6% | 8.6% | 105.2% | 40.0% | 145.2% | 65.2% | |
| ITD | 6.4% | 4.5% | 14.0% | 9.5% | (4.8%) | 106.1% | 44.2% | 150.3% | 61.9% |
Historic Efficiency and Publicity
| Interval | RLSIX | MorningstarL/S Fairness | S&P 500Complete Return | Contribution | Publicity* | ||||
|---|---|---|---|---|---|---|---|---|---|
| Lengthy | Brief | Lengthy | Brief | Gross | Internet | ||||
| 2009t | 1.7% | 1.3% | 6.0% | 5.7% | 84.9% | 40.7% | 125.6% | 44.2% | |
| 2010 | 4.7% | 4.7% | 15.1% | 13.9% | 99.3% | 45.2% | 144.5% | 54.0% | |
| 2011 | 8.5% | 2.1% | 3.8% | 6.9% | 115.8% | 56.3% | 172.0% | 59.5% | |
| 2012 | 18.9% | 3.6% | 16.0% | 26.3% | 106.9% | 54.2% | 161.1% | 52.7% | |
| 2013 | 12.0% | 14.6% | 32.4% | 42.0% | 109.0% | 52.2% | 161.2% | 56.9% | |
| 2014 | 2.8% | 13.7% | 5.3% | 111.8% | 52.3% | 164.1% | 59.4% | ||
| 2015 | 0.6% | 1.4% | 3.9% | 107.2% | 49.0% | 156.2% | 58.1% | ||
| 2016 | 2.1% | 12.0% | 7.9% | 111.9% | 54.5% | 166.4% | 57.3% | ||
| 2017 | 22.1% | 10.7% | 21.8% | 36.6% | 121.3% | 59.8% | 181.1% | 61.5% | |
| 2018 | 2.5% | 103.6% | 44.6% | 148.2% | 59.0% | ||||
| 2019 | 19.9% | 11.9% | 31.5% | 30.4% | 94.9% | 43.1% | 138.0% | 51.8% | |
| 2020 | 54.7% | 5.5% | 18.4% | 56.8% | 98.8% | 37.3% | 136.1% | 61.4% | |
| 2021 | 2.1% | 12.5% | 28.7% | 13.0% | 118.5% | 41.4% | 160.0% | 77.1% | |
| 2022 | 6.2% | 116.0% | 37.9% | 153.9% | 78.2% | ||||
| 2023 | 43.8% | 9.9% | 26.3% | 51.7% | 95.8% | 26.4% | 122.2% | 69.3% | |
| 2024 | 16.1% | 12.0% | 25.0% | 21.4% | 93.2% | 21.9% | 115.1% | 71.2% |
† Inception date of the Fund was September 30, 2009. Annualized efficiency since inception of the Mutual Fund (3/30/12) was 4.9% for RLSIX. The efficiency quoted herein represents previous efficiency. Previous efficiency doesn’t assure future outcomes. The efficiency quoted for intervals previous to March 30, 2012 is that of RiverPark Alternative Fund, LLC (the “Predecessor Fund”). The inception date of the Predecessor Fund was September 30, 2009. The efficiency of the Predecessor Fund contains the deduction of precise charges and bills, which had been greater than the charges and bills charged to the Fund. Though the Fund is managed in a materially equal method to its predecessor, the Predecessor Fund was not a registered mutual fund and was not topic to the identical funding and tax restrictions because the Fund. Efficiency proven for intervals higher than one yr are annualized. The Contribution numbers set forth above are produced by RiverPark Advisors, LLC, the Fund’s adviser, in accordance with typically accepted requirements within the trade. Contribution is proven gross of administration charges and bills and is geometrically linked on a month-to-month foundation. Contribution just isn’t a precise science and completely different methodologies might produce completely different outcomes. * The place relevant, the exposures are delta-adjusted and are computed by averaging the exposures of every month-end inside every interval. To find out if the Fund is an applicable funding for you, rigorously contemplate the Fund’s funding targets, danger components, expenses, and bills earlier than investing. This and different info could also be discovered within the Fund’s abstract or full prospectus, which can be obtained by calling 888.564.4517, or by visiting the web site at www.riverparkfunds.com. Please learn the prospectus rigorously earlier than investing. Mutual fund investing entails danger together with doable lack of principal. Along with the traditional dangers related to investing, worldwide investments might contain danger of capital loss from unfavorable fluctuation in forex values, from variations in typically accepted accounting rules or from social, financial or political instability in different nations. Using leverage might speed up the rate of potential losses. Moreover, the chance of loss from a brief sale is limitless as a result of the Fund should buy the shorted safety at a better value to finish the transaction and there’s no higher restrict for the safety value. Using choices, swaps and derivatives by the Fund has the potential to extend considerably the Fund’s volatility. There might be no assurance that the Fund will obtain its acknowledged targets. This materials represents the portfolio supervisor’s opinion and is an evaluation of the market surroundings at a particular time and isn’t meant to be a forecast of future occasions or a assure of future outcomes. This info shouldn’t be relied upon by the reader as analysis or funding recommendation relating to the funds or any safety particularly. Commonplace and Poor’s 500 Complete Return Index is a capitalization-weighted index of 500 shares. The index is designed to measure efficiency of the broad home economic system by means of adjustments within the mixture market worth of 500 shares representing all main industries. Nasdaq (NDAQ)-100 Index is a inventory index that features 100 of the most important home and worldwide non-financial corporations listed on The Nasdaq Inventory Market based mostly on market capitalization. Morningstar Lengthy/Brief Fairness Class portfolios maintain sizeable stakes in each lengthy and brief positions in equities and associated derivatives. Some funds that fall into this class will shift their publicity to lengthy and brief positions relying on their macro outlook or the alternatives they uncover by means of bottomup analysis. Some funds might merely hedge lengthy inventory positions by means of exchange-traded funds or derivatives. The Russell 1000 Development Complete Return Index measures the efficiency of these Russell 1000 corporations with greater price-to-book ratios and better forecasted progress values. The S&P 500 Complete Return Index is an unmanaged capitalization-weighted index typically consultant of huge corporations within the U.S. inventory market and based mostly on value adjustments and reinvested dividends. Morningstar Massive Development portfolios make investments primarily in massive U.S. corporations which can be projected to develop quicker than different large-cap shares. Index returns are for illustrative functions solely and don’t replicate any administration charges, transaction prices, or bills. Indexes are unmanaged and one can not make investments instantly in an Index. The RiverPark funds are distributed by SEI Investments Distribution Co., One Freedom Valley Drive, Oaks, PA 19456 which isn’t affiliated with RiverPark Advisors, LLC or their associates. |
Authentic Put up
Editor’s Be aware: The abstract bullets for this text had been chosen by Looking for Alpha editors.
Editor’s Be aware: This text covers a number of microcap shares. Please pay attention to the dangers related to these shares.