RiverPark Advisors, an investment advisory firm, and sponsor of the RiverPark family of mutual funds released its “RiverPark Large Growth Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned 2.41% in the fourth quarter compared to a 7.56% return for the S&P 500 Total Return Index and a 2.20% return for the Russell 1000 Growth Total Return Index. In 2022, the fund declined by 47.37% compared to -18.11% and -29.14% fall for the S&P 500 and the Russell 1000 Growth Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2022.
RiverPark Large Growth Fund highlighted stocks like Datadog, Inc. (NASDAQ:DDOG) in the Q4 2022 investor letter. Headquartered in New York, New York, Datadog, Inc. (NASDAQ:DDOG) is a software company that provides monitoring and analytics platform for developers. On February 10, 2023, Datadog, Inc. (NASDAQ:DDOG) stock closed at $80.52 per share. One-month return of Datadog, Inc. (NASDAQ:DDOG) was 14.26%, and its shares lost 51.01% of their value over the last 52 weeks. Datadog, Inc. (NASDAQ:DDOG) has a market capitalization of $25.57 billion.
RiverPark Large Growth Fund made the following comment about Datadog, Inc. (NASDAQ:DDOG) in its Q4 2022 investor letter:
“We initiated a small position in Datadog, Inc. (NASDAQ:DDOG) during the quarter. As businesses have transitioned to cloud software infrastructure, much of which is in isolated data silos, it has become increasingly difficult for data engineers to monitor and analyze system performance. Datadog provides a SaaS software platform to monitor and analyze the performance of software applications and IT infrastructure.
The company has quickly grown its revenue from $100 million in 2017 to $1 billion in 2021 and, we believe, should continue to grow revenue at more than 30% annually as it penetrates its $40 billion and fast-growing market. Less than 10% of software applications are currently monitored. Datadog’s customer count has been growing rapidly, up 27% year over year as of 3Q22. Additionally, the company’s dollar-based net retention rate has been 130%+ as existing customers continue to use an increasing number of products and the company continues to add new features. For 3Q22, 80% of customers used 2+ products, while 16% of customers used 6+ products (up from less than 1% two years ago). As an extremely capex light software business, DDOG already has significant FCF (and a 24% FCF margin), which should continue to grow more than 40% for 2022 to $355 million, up from $1 million two years ago.”
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Datadog, Inc. (NASDAQ:DDOG) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 74 hedge fund portfolios held Datadog, Inc. (NASDAQ:DDOG) at the end of the third quarter, which was 82 in the previous quarter.
We discussed Datadog, Inc. (NASDAQ:DDOG) in another article and shared Alger Capital’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.