Baron Funds, an investment management firm, released its “Baron Global Advantage Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. During the third quarter of 2023, the Baron Global Advantage Fund®, denoted as the “Fund,” experienced a 6.1% loss for its Institutional Shares. This performance can be compared to the 3.4% losses of the MSCI ACWI Index, known as the “Benchmark,” and the 4.9% losses for the MSCI ACWI Growth Index, which serves as the Fund’s benchmarks. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Baron Global Advantage Fund mentioned Rivian Automotive, Inc. (NASDAQ:RIVN) and explained its insights for the company. Rivian Automotive, Inc. (NASDAQ:RIVN) is an Irvine, California-based electric vehicle manufacturer and automotive technology and outdoor recreation company with a $16.2 billion market capitalization. Rivian Automotive, Inc. (NASDAQ:RIVN) delivered a -6.78% return since the beginning of the year, while its 12-month returns are down by -45.15%. The stock closed at $17.18 per share on November 6, 2023.
Here is what Baron Global Advantage Fund has to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q3 2023 investor letter:
“Shares of Rivian Automotive, Inc., a U.S.-based electric vehicle manufacturer, continued their volatile trading, and after declining during the first half of 2023, rose 45.7% during the third quarter. Rivian’s unit economics are improving as a result of several factors: i) the company’s production rate is increasing, which enables it to better absorb fixed costs; ii) Rivian is ramping-up the usage of more price effective technologies, such as LFP batteries and its in-house developed motor, Enduro; and iii) the company is benefiting from renegotiated supplier agreements, as its scale and purchasing power have significantly increased over the last few years. Management expects continued progress in profitability ahead as Rivian further scales production. We remain shareholders and believe that the release of Rivian’s new smaller SUV dubbed R2, which is planned for early 2024, would enable the company to compete in the higher volume SUV segment, and significantly expand its addressable market. On the liquidity front, we expect the company to raise additional funds to support its longer-term business plans.”
A customer smiling delightedly after driving away in their new car from the automotive retail shop.
Our calculations show that Rivian Automotive, Inc. (NASDAQ:RIVN) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. Rivian Automotive, Inc. (NASDAQ:RIVN) was in 37 hedge fund portfolios at the end of the second quarter of 2023, compared to 31 funds in the previous quarter. Rivian Automotive, Inc. (NASDAQ:RIVN) delivered a -29.24% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
