RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, has released its third quarter 2024 investor letter “RiverPark Large Growth Fund.” A copy of the letter can be downloaded here. In the third quarter, markets performed strongly, with the Russell 1000 Growth Index (RLG) and S&P 500 Index returning 3.19% and 5.89%, respectively, and the RPX returning 3.73%. A weaker-than-expected jobs report that fueled fears of an impending recession caused RLG to fall 8.8% from the end of June to August 5, making for a rocky start to the quarter. When China passed a large stimulus package and the Fed began its rate cutting cycle with a 0.50% cut to a target of 4.75% to 5.00%, these losses quickly reversed. Also, please check out the fund’s top five holdings to know the best picks in 2024.

RiverPark Large Growth Fund highlighted stocks like Charles Schwab Corporation (NYSE:SCHW) in its third-quarter 2024 investor letter. Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody and financial advisory services. Charles Schwab Corporation (NYSE:SCHW)’s one-month return was -4.60%, and its shares have gained 14.36% of their value over the past 52 weeks. On December 17, 2024, Charles Schwab Corporation (NYSE:SCHW) stock closed at $76.76 per share with a market cap of $140.514 billion.

RiverPark Large Growth Fund stated the following regarding Charles Schwab Corporation (NYSE:SCHW) in its third quarter 2024 investor letter:

“The Charles Schwab Corporation (NYSE:SCHW): SCHW was one of the biggest detractors in the third quarter following a mixed second-quarter earnings report. After two quarters of stabilizing customer deposits and continued reductions in short-term, high-cost financing, both metrics reversed in the second quarter, leading the company to lower near-term EPS expectations. While customers’ deposit accounts were no longer significantly affected by cash sorting (customers moved their cash into higher-yielding instruments), they declined more than expected as customers used that cash to pay taxes. Lower-than-expected deposits, in turn, limited SCHW’s ability to continue to repay higher-cost funding sources, ultimately resulting in lower spread returns. Although near-term EPS expectations have been lowered, we believe 1) higher spreads should still materialize, even if delayed, and 2) overall client assets continue to grow at a healthy pace, driven by market gains and organic growth.

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Charles Schwab Corporation (NYSE:SCHW) isn’t on our list of the 31 most popular stocks among hedge funds. According to our database, there were 74 hedge fund portfolios holding The Charles Schwab Corporation (NYSE:SCHW) at the end of the third quarter, up from 72 in the previous quarter. Charles Schwab Corporation (NYSE:SCHW) revenue increased 5% year-over-year in the third quarter $4.8 billion. While we recognize Charles Schwab Corporation (NYSE:SCHW)’s potential as an investment, we believe AI stocks have more promise for delivering higher returns, and within a shorter time frame. If you’re looking for an AI stock that has the same promise as NVIDIA but costs less than five times its earnings, check out our report on it cheapest AI stock.

In another article, we discussed Charles Schwab Corporation (NYSE:SCHW) and shared Broyhill Asset Management’s views on the company. You can also find additional investor letters from hedge funds and other leading investors on our Q3 2024 Hedge Fund Investor Letters page.

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Disclosure: None. This article was originally published on Insider Monkey.