RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its "RiverPark Large Growth Fund" Q1 2026 investor letter. A copy of the letter can be downloaded here. The US stock market declined in the quarter with the S&P 500 index ("S&P") and the Russell 1000 Growth index ("RLG") falling 4.33% and 9.78%, respectively. Markets started the year positively but became volatile mainly due to increased tensions with Iran. The Federal Reserve kept rates unchanged in January and February. Still, rising energy prices and weaker economic data sparked concerns about stagflation, leading investors to rethink the timing and scale of future rate cuts. Investor sentiment shifted from growth and tech stocks amid inflation, interest rate, and supply chain concerns. Opposing AI-driven rotations heavily influenced investor sentiment, affecting growth stocks—enthusiasm grew for semiconductor firms linked to AI infrastructure spending, while enterprise software companies, viewed as vulnerable to AI disruption, faced pessimism. The Fund's software holdings were sold off heavily, while the underweight in semiconductor companies, which benefited most from AI infrastructure spending, affected the performance. Despite challenges, the firm remains confident in the long-term prospects and valuations of its portfolio companies. Please review the Fund's top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, RiverPark Large Growth Fund highlighted Datadog, Inc. (NASDAQ:DDOG). Datadog, Inc. (NASDAQ:DDOG) is a leading cloud computing and software company that provides an observability and security platform for cloud applications. On July 7, 2026, Datadog, Inc. (NASDAQ:DDOG) closed at $256.81 per share, reflecting a market capitalization of $91.41 billion. Datadog, Inc. (NASDAQ:DDOG) posted a one-month return of 12.82%, while its shares gained 79.90% over the past 52 weeks.
RiverPark Large Growth Fund stated the following regarding Datadog, Inc. (NASDAQ:DDOG) in its Q1 2026 investor letter:
"Furthermore, for the software companies we own, the evidence suggests AI is driving new business rather than destroying existing revenue. Datadog, Inc. (NASDAQ:DDOG), which monitors the AI infrastructure being built by hyperscalers and enterprises alike, reported 32% revenue growth, accelerating from 29% last quarter, with new logo bookings setting an all-time record. The AI gold rush is not disintermediating Datadog; it is providing its fastest-growing source of new customers."