RPD Opportunity Fund commentary for the month ended June 30, 2025.
The RPD Opportunity Fund returned +5.30% net in June, bringing the year-to-date net performance to +20.07%. We are encouraged by our strong execution during the first half of 2025, as market volatility and valuation dislocations continued to create a favorable setup for our strategy.
Equities broadly rallied in June, supported by easing global trade tensions, relatively stable labor markets, resilient consumer spending and declining inflation. While overall market volatility moderated, we identified a number of individual securities where implied volatility remained elevated, and valuations were compelling. These pockets of dislocation allowed us to deploy capital selectively and generate attractive option premiums in-line with our disciplined, valuation-driven approach.
Performance this month was broad-based. Our top 3 long positions were among the most significant contributors. These names continue to reflect our focus on companies trading at steep discounts to intrinsic value, often amid misunderstood or existential industry disruption narratives. Many of our highest-conviction long theses have yet to fully play out, and we remain optimistic about their upside potential.
Our fully cash-secured options strategy also performed well. Put selling, with carefully selected strikes based on deep valuation work, on names like Appian Corp (NASDAQ:APPN), Five9 Inc (NASDAQ:FIVN), Snap Inc (NYSE:SNAP) and MGM Resorts International (NYSE:MGM) delivered strong results. These trades exemplify how we underwrite risk while generating consistent premium income and controlling our entry points.
In June, the Fund maintained an average notional exposure of 115% long and 15% short, resulting in a net exposure of 100%, a gross of 130%, and a delta-adjusted net exposure averaged 77%. The portfolio spans a wide range of industries including software & data infrastructure, Chinese internet, consumer brands within retail & apparel, real estate services, online marketplaces, gaming & leisure, enterprise automation, AI platforms, and specialty beauty.
While the investing environment remains dynamic, we are encouraged by how the portfolio is positioned today. Although sentiment fluctuates with headlines, we believe that disciplined security selection and active risk management will continue to deliver strong results over time. With current delta-adjusted exposure at approximately 94% long and 10% short, we remain constructively positioned to capture further upside while maintaining our flexibility to navigate volatility.
If you have any questions or require additional information, please contact Investor Relations at [email protected].
Best regards,
RPD Fund Management LLC
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