RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q4 2025 investor letter. A copy of the letter can be downloaded here. The US stock market delivered modest gains in the quarter with the S&P 500 index (“S&P”) and the Russell 1000 Growth index (“RLG”) returning 2.6% and 1.1%, respectively. The Fund appreciated by 1.4% during the same period. For the full year, the Fund was up 13.3% vs. 17.4% and 18.6% gains, respectively, for the indexes. The performance in the Russell 1000 Growth Index was uneven.  Market leadership remains concentrated, but underlying divergence has deepened. Investors preferred companies with durable earnings and progress in monetizing growth, especially in health care and parts of the AI value chain. The Fund is optimistic that its portfolio consists of attractively valued companies benefiting from strong growth trends and expected to generate significant cash flow. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, RiverPark Large Growth Fund highlighted stocks like Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops and supports software, services, devices, and solutions. Microsoft Corporation (NASDAQ:MSFT) is an energy company that supplies nuclear fuel components for the nuclear power industry. On March 24, 2026, Microsoft Corporation (NASDAQ:MSFT) stock closed at $372.74 per share. One-month return of Microsoft Corporation (NASDAQ:MSFT) was -6.95%, and its shares lost 4.42% over the past 52 weeks. Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $2.77 trillion.

RiverPark Large Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2025 investor letter:

"Microsoft Corporation (NASDAQ:MSFT): MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. Operating margin expanded by roughly 240 basis points year-over-year, and EPS modestly exceeded expectations. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. In addition, capital expenditures were materially higher than anticipated at $34.9 billion for the quarter, and full-year fiscal 2026 CapEx expectations increased meaningfully.

Microsoft Corporation (NASDAQ:MSFT) ranks second on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 312 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of the fourth quarter, the same as in the previous quarter. While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Microsoft Corporation (NASDAQ:MSFT) and shared top stock picks from Jim Cramer stock portfolio. In addition, please check out our hedge fund investor letters Q4 2025 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.