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RiverPark Long/Short Opportunity Fund's Q3 2025 investor letter offers a comprehensive overview of its market strategy and performance, emphasizing key contributors and adjustments made to its portfolio. The fund maintained a strategic balance between long and short positions, aligning with its objective to deliver superior returns while managing risk. Insights into individual company performances reveal the fund's focused investment approach in a dynamic market landscape.

The letter underscores the successful identification of growth opportunities, particularly in technology and healthcare. The fund's ability to capitalize on strong performers like Alphabet and NVIDIA, alongside maintaining positions in fundamentally sound companies such as Intuitive Surgical, showcases a robust investment philosophy. These strategic choices reflect a commitment to long-term value creation and adapting to market shifts.

Top Performers and Strategic Allocations

In the third quarter of 2025, the RiverPark Long/Short Opportunity Fund saw Alphabet (GOOG) emerge as its primary growth driver, significantly boosting the portfolio. This positive momentum was largely attributed to the robust performance of Google's core Search platform and the accelerating growth of its YouTube division, underscoring Alphabet's sustained strength as a leading technology entity. The fund views Alphabet as a cornerstone of long-term investment, considering its dominant market position and consistent innovation in key digital sectors, solidifying its status as a top-tier secular growth opportunity within the market. This conviction in Alphabet's future prospects highlights the fund's strategy of investing in companies with strong competitive advantages and clear growth trajectories.

NVIDIA (NVDA) also played a crucial role in the fund's success during the quarter, with its shares appreciating significantly. The company reported exceptional financial results, surpassing even heightened analyst expectations, which further cemented its position as a leader in the semiconductor industry, particularly in AI and data center technologies. Conversely, Intuitive Surgical (ISRG) experienced a lagging stock performance despite demonstrating impressive underlying business fundamentals, including double-digit revenue and earnings growth. The fund concluded the quarter with a strategic allocation of 93.15% in long positions and 22.28% in short positions, resulting in a net exposure of 71.76%. This adjustment reflects a calculated refinement of its portfolio strategy, aiming to optimize risk-adjusted returns by selectively increasing net exposure based on market outlook and individual security analysis.

Market Dynamics and Investment Outlook

The third quarter of 2025 proved to be a period of strategic adjustments and significant gains for the RiverPark Long/Short Opportunity Fund, primarily driven by its astute investment choices in the technology sector. Alphabet (GOOG) was a standout performer, benefiting from a resurgence in its core search advertising business and accelerated growth in its YouTube platform. The fund's deep conviction in Alphabet's long-term potential remains strong, viewing it as a fundamentally sound company with enduring competitive advantages and extensive opportunities for future expansion. This perspective is rooted in Alphabet's continuous innovation in AI, cloud computing, and digital advertising, which collectively reinforce its market leadership and potential for sustained revenue growth. The fund's analysis suggests that Alphabet's diverse ecosystem and robust financial health position it favorably for continued outperformance.

Furthermore, NVIDIA (NVDA) delivered stellar results, far exceeding the market's already elevated expectations, which contributed substantially to the fund's performance. The company's dominance in high-growth areas such as artificial intelligence and graphics processing units (GPUs) validates its strategic importance in the evolving technological landscape. In contrast, Intuitive Surgical (ISRG), despite reporting impressive double-digit growth in both revenue and earnings, did not see its stock price fully reflect these operational successes during the quarter. This divergence between fundamental strength and market perception indicates a potential undervaluation, which the fund may seek to capitalize on. The quarter concluded with the fund calibrating its exposure, starting with 92.48% long and 20.72% short, ending at 93.15% long and 22.28% short, achieving a net exposure of 71.76%. These adjustments reflect a dynamic and responsive investment strategy, constantly optimizing the balance between aggressive growth pursuit and prudent risk management in anticipation of future market movements. The fund's forward-looking approach aims to identify and leverage both emerging opportunities and potential areas of concern, ensuring a resilient and high-performing portfolio.