RPD Opportunity Fund commentary for the month ended July 31, 2025.
The RPD Opportunity Fund returned +4.88% net in July, bringing year-to-date performance to +25.93% as of July 31. We are encouraged by the portfolio’s performance over the past six months, particularly in an environment where pockets of dislocation remain despite broader market strength.
The estimated performance figures net of fees as of July 31, 2025
| Month | Year to Date | Inception to Date | Annualized Net Return | |
| RPD Opportunity Fund | 4.88% | 25.93% | 84.62% | 14.78% |
| S&P 500 | 2.24% | 8.58% | 82.52% | 14.31% |
| RUSS 2000 | 1.73% | -0.09% | 13.34% | 2.82% |
| NASDAQ | 3.71% | 9.78% | 67.18% | 12.10% |
Inception date - February 1, 2021
Equity markets advanced steadily through July, supported by moderating inflation, solid consumer spending, and easing global trade tensions. Corporate earnings came in ahead of expectations, and investor sentiment improved modestly. While index-level volatility has declined, we continue to find individual securities with elevated implied volatility and discounted valuations that are disconnected from fundamentals. These conditions continue to create attractive opportunities well-suited to our strategy.
Performance during the period reflected strength across the portfolio, with meaningful contributions from both our core long holdings and our cash-secured put strategy. On the long side, our highest conviction ideas – businesses trading at significant discounts to intrinsic value – continue to perform well as fundamentals play out or sentiment begins to shift. At the same time, our cash-secured put strategy continues to generate consistent premium income. We remain focused on underwriting risk using deep valuation work, targeting strike prices that offer meaningful downside protection and attractive risk-adjusted returns.
The Fund maintained an average delta-adjusted gross exposure of 121% during the period, with 91% long and 30% short, resulting in net delta-adjusted exposure of approximately 61%. This reflects our continued prudence in a market where true bargains remain scarce. We prefer to stay underexposed when valuation discipline doesn’t justify full investment, and we believe our patience will ultimately be rewarded.
One of the most meaningful drivers of performance over the summer was Anywhere Real Estate Inc. (HOUS). The U.S. housing market remains in a structural depression, with inventory and affordability still constrained; however, we believe pent-up demand remains significant and will begin to materialize as mortgage rates gradually decline. HOUS, with its scalable business model and strong brand recognition, is well positioned to benefit from a recovery in housing transactions. We view this as a multi-year opportunity with asymmetric upside.
We remain committed to our process and valuation framework. In markets prone to misallocations driven by momentum or prevailing narratives, our disciplined valuation approach and tactical flexibility continue to serve as key advantages. We are optimistic about our ability to protect and compound capital, and our process ensures we are always ready to act decisively when compelling opportunities arise.
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
Read more hedge fund letters here
