December 5, 2022

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automotive

Is it Wise to Keep Your Rivian Automotive (RIVN) Shares?

Baron Funds, an asset management firm, published its “Baron Global Advantage Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Global Advantage Fund (the “Fund”) declined 22.8% (Institutional Shares), during the first quarter, compared to the 5.4% loss for the MSCI ACWI Index (the “Index”), and the 9.7% loss for the MSCI ACWI Growth Index, the Fund’s benchmarks. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Global Advantage Fund mentioned Rivian Automotive, Inc. (NASDAQ:RIVN) and explained its insights for the company. Founded in 2009, Rivian Automotive, Inc. (NASDAQ:RIVN) is an Irvine, California-based electric vehicle automaker and automotive technology company with a $28.0 billion market capitalization. Rivian Automotive, Inc. (NASDAQ:RIVN) delivered a -24.77% for the past month and it closed at $31.74 per share on May 02, 2022.

Here is what Baron Global Advantage Fund has to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q1 2022 investor letter:

Rivian Automotive, Inc. designs, manufactures, and sells consumer and commercial electric vehicles. Shares of Rivian continued its volatile trading following the stock’s IPO in late 2021, declining 52% in the first quarter as investors rotated out of fast-growing long-duration stocks and as industrywide supply-chain issues delayed Rivian’s production ramp. In addition, even while other automotive companies raised prices due to inflationary pressures, Rivian launched a price increase campaign that was not well communicated and, as a result, was met with dissatisfaction by existing reservation holders. While this was an unforced error, the company quickly corrected course, reversing its decision to raise prices for existing reservations, while maintaining the increase on new buyers (which has not caused a material impact to demand). We retain conviction in the shares given management’s vision, Rivian’s product positioning, the company’s relationship with Amazon.com, and the company’s strong balance sheet, which will help it overcome the current challenges while taking advantage of the long-term opportunity as the market transitions to electric vehicles.”

Electric Vehicle

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Our calculations show that Rivian Automotive, Inc. (NASDAQ:RIVN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Rivian Automotive, Inc. (NASDAQ:RIVN) was in 47 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 0 funds in the previous quarter. Rivian Automotive, Inc. (NASDAQ:RIVN) delivered a -54.41% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Rivian Automotive, Inc. (NASDAQ:RIVN) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.