RiverPark Funds, an investment management firm, published its “RiverPark Wedgewood Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. For the second quarter of 2022, the Fund declined by -17.4%. The S&P 500 Index declined by -16.1%. The Russell 1000 Growth Index declined by -20.9% while the Russell 1000 Value Index declined by -12.2%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, RiverPark Wedgewood Fund mentioned Pool Corporation (NASDAQ:POOL) and explained its insights for the company. Founded in 1993, Pool Corporation (NASDAQ:POOL) is a Covington, Louisiana-based swimming pool supplies, equipment and related leisure products distributor with a $13.0 billion market capitalization. Pool Corporation (NASDAQ:POOL) delivered a -41.85% return since the beginning of the year, while its 12-month returns are down by -26.34%. The stock closed at $329.14 per share on September 29, 2022.
Here is what RiverPark Wedgewood Fund has to say about Pool Corporation (NASDAQ:POOL) in its Q2 2022 investor letter:
“Those of you who own a backyard pool already know the Pool Corp. story quite well. (Honey, why is the pool water green?) Those who don’t own a pool, well, we recommend a little rent-seeking on your neighbor’s pool by owning these shares. The Pool Corp. strategy is beautifully simple; build a pool and become its customer for life. Once the major discretionary expenditure of building a pool is made, that high-maintenance asset becomes an annual annuity for your local pool service company. Increasingly, that local pool service company could well be owned by Pool Corp.
Those who own older pools know quite well that pool maintenance is much more involved (read: expensive) than just annual chemicals in the early years. Once a pool reaches its early teen years (often sooner), maintenance reaches a very different level of (read: expensive) when every part of the pool’s filtration system wears out. As the years progress, then pool/backyard rebuild kicks off. Well, that original pool becomes a brand-new second pool. Rinse and repeat. Your local pool service company is assuredly not the lonely Maytag repairman…” (Click here to see the full text)
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Our calculations show that Pool Corporation (NASDAQ:POOL) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Pool Corporation (NASDAQ:POOL) was in 40 hedge fund portfolios at the end of the second quarter of 2022, compared to 42 funds in the previous quarter. Pool Corporation (NASDAQ:POOL) delivered a -5.95% return in the past 3 months.
In June 2022, we also shared another hedge fund’s views on Pool Corporation (NASDAQ:POOL) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.