RiverPark Long/Short Opportunity Fund Q4 2025 Commentary (RLSIX)

Market Performance - The U.S. stock market experienced modest gains in Q4 2025, with the S&P 500 Total Return Index returning 2.66% and the Russell 1000 Growth Index returning 1.12% [2] - The RiverPark Long/Short Opportunity Fund had a slight increase, returning 0.13% for the quarter [2] Sector Performance - Performance within the Russell 1000 Growth Index was uneven, with Health Care and Communication Services showing notable strength, while Utilities and Real Estate lagged [3] - Market leadership remained concentrated, but there was increased dispersion beneath the surface, with investors favoring companies with earnings durability and progress in monetizing growth investments, particularly in health care and AI [4] Economic Context - Economic growth was better than expected, and inflation continued to moderate, leading to incremental easing of financial conditions [5] - Investor focus shifted towards return on invested capital rather than just headline growth during the quarter [5] Portfolio Performance - The long positions contributed 0.89% to performance, while short positions cost 0.29% [6] - The fund started Q4 with 93.15% long and 22.28% short, ending with 97.63% long and 18.72% short [8] Top Performers - Alphabet Inc. (GOOG) was the top performer, contributing 1.42% due to strong Q3 results and positive sentiment around digital advertising and AI monetization [10][11] - Eli Lilly & Co. (LLY) saw a 54% year-over-year revenue increase to $17.6 billion, driven by its GLP-1 franchises, contributing 1.22% to performance [13][14] - Intuitive Surgical, Inc. (ISRG) appreciated due to strong procedure growth and system placements, contributing 0.54% [15][16] Top Detractors - Netflix, Inc. (NFLX) was the largest detractor, impacting performance by -0.69% due to concerns over subscriber growth and rising content spending [18][20] - CoreWeave, Inc. (CRWV) saw a decline of -0.64% following results that slightly missed elevated expectations [18][24] - Uber Technologies, Inc. (UBER) detracted -0.52% despite strong operating performance, as investor focus shifted to margin expansion concerns [18][26] Long and Short Holdings - The top ten long holdings included Apple Inc. (6.9%), Microsoft Corp. (6.7%), and NVIDIA Corp. (6.6%), representing a significant portion of net assets [29] - The long portfolio themes included AI/Cloud Computing (16.9%), Internet Media (13.3%), and E-Commerce (7.5%) [30][31] Investment Strategy - The fund's strategy focuses on high-quality businesses with strong fundamentals for long positions, while short positions target companies with deteriorating financials or unsustainable business models [33]