RPD Opportunity Fund's commentary for the month ended August 31, 2025.
The RPD Opportunity Fund delivered another strongly positive month, with gains driven by long positions and steady contributions from option selling.
The estimated performance figures net of fees as of August 31, 2025
| Month | Year to Date | Inception to Date | Annualized Net Return | |
|---|---|---|---|---|
| RPD Opportunity Fund | 7.98% | 35.98% | 99.36% | 16.43% |
| S&P 500 | 2.02% | 10.78% | 86.22% | 14.53% |
| RUSS 2000 | 7.12% | 7.04% | 21.42% | 4.33% |
| NASDAQ | 1.64% | 11.59% | 69.93% | 12.26% |
Inception date - February 1, 2021
Standout contributors included Baidu (BIDU), Appian (APPN), and Anywhere Real Estate (HOUS). APPN and BIDU advanced as investors recognized progress in the underlying fundamentals despite sector-wide volatility, while HOUS rallied nearly 28% after the Company reported 2Q results that showed steady commission rates for the 3rd straight quarter post the NAR settlement and signs of pent-up housing demand returning with lower mortgage rates.
We reduced our China exposure to the lowest level in more than two years, reflecting disciplined profit-taking and a more cautious outlook on the region. On a notional basis, average long exposure was 129% and short exposure 14%, resulting in net exposure of about 115%. On a delta-adjusted basis, however, long exposure was closer to 81% and short exposure 10%, for net exposure of 71%. Outright equity long exposure remained under 50%, with the balance reflecting our strategy of selling short-dated, out-of-the-money puts that are fully cash covered. This approach generates steady premium income while preserving flexibility to deploy capital when more compelling opportunities emerge.
Year-to-date performance and portfolio execution remain strong, achieved with only limited contribution from our largest position, ZoomInfo Technologies (GTM). As business fundamentals continue to improve, we expect the market to recognize GTM’s customer mix improvements and its transition to platform-driven growth. With a 12% free cash flow yield, significant buybacks, and the company at the cusp of an inflection point, the setup is highly attractive for meaningful upside
Since inception in 2021, the Fund has delivered a net annualized return of 16.43%. These results were achieved during one of the most challenging stretches for value investors in decades. While solid, our returns reflect the strategy’s ability to execute during a period when bargains were extremely scarce in the U.S., our primary focus market. Because of our strict discipline, our outright U.S. equity long exposure has averaged only 21% since inception. Returns ultimately require capital at work; our challenge has been to deploy it selectively without compromising discipline. We generated these returns despite being very lightly invested, with meaningful contribution from our option strategy. If markets normalize from today’s very elevated levels, we should be able to find far more bargains. When that happens, we expect our net annualized return to climb higher than 16.4%. For example, earlier this year, AI-related concerns triggered a selloff in many software names even as the broader market advanced. We capitalized on those bargains, which drove our strong returns this year. It is not a stretch to expect a similar outcome if markets were to sell off again. All we need is a normalized market environment.
While it has been frustrating at times, we will never deviate from our strict discipline. We remain intensely focused on our investments and are well positioned to exploit future dislocations in the market.
If you have any questions or require additional information, please contact Investor Relations at [email protected].
Best regards,
RPD Fund Management LLC
(212) 201-2650
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