Billionaire Daniel Sundheim’s D1 Capital Portfolio: Top 5 Stock Picks

3. Rivian Automotive, Inc. (NASDAQ:RIVN)

D1 Capital’s Stake Value: $783,291,000

Percentage of D1 Capital’s 13F Portfolio: 9.22%

Number of Hedge Fund Holders: 29

Rivian Automotive, Inc. (NASDAQ:RIVN) is a California-based electric vehicle manufacturer that offers a range of pickup trucks and sports utility vehicles. In Q1 2022, D1 Capital Partners held about 15.6 million Rivian Automotive, Inc. (NASDAQ:RIVN) shares, worth $783.2 million, representing 9.22% of the total portfolio. 

Canaccord Genuity on July 13 initiated coverage on Rivian Automotive, Inc. (NASDAQ:RIVN) with a Buy rating and a $61 price target. Analyst George Gianarikas issued the rating and presented a robust defense of the stock’s upside potential. The analyst told investors that Rivian Automotive, Inc. (NASDAQ:RIVN) has what it takes to become a leader in the EV and mobility space. 

According to Insider Monkey’s data, 29 hedge funds were long Rivian Automotive, Inc. (NASDAQ:RIVN) at the end of Q1 2022, with combined stakes worth about $4 billion. This is comparable to 47 hedge funds holding stakes in Rivian Automotive, Inc. (NASDAQ:RIVN) valued at more than $9 billion in the prior quarter. Philippe Laffont’s Coatue Management held the biggest position in the company, comprising roughly 31 million shares worth $1.5 billion. 

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 industry wide 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.”