Here’s Why You Should Remain Optimistic in Your Rivian (RIVN) Stake

ClearBridge Investments, an investment management firm, published its “Select Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Select Strategy underperformed its Russell 3000 Index benchmark in the fourth quarter. On an absolute basis, the Strategy had gains in eight of the 10 sectors in which it was invested during the quarter (out of 11 sectors total). The industrials and financials sectors were the primary contributors to performance while the communication services and consumer discretionary sectors were detractors. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

ClearBridge Investments Select Strategy, in its Q4 2021 investor letter, mentioned Rivian Automotive, Inc. (NASDAQ:RIVN) and discussed its stance on the firm. Founded in 2009, Rivian Automotive, Inc. (NASDAQ:RIVN) is an Irvine, California-based automaker company with a $37.2 billion market capitalization, and is currently spearheaded by its CEO, RJ Scaringe. Rivian Automotive, Inc. (NASDAQ:RIVN) delivered a -53.13% return since the beginning of the year, while its 12-month returns are down by -59.31%. The stock closed at $42.19 per share on April 05, 2022.

Here is what ClearBridge Investments Select Strategy has to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q4 2021 investor letter:

“We are willing to take some risk on IPOs but need to be convinced on the opportunity and manage these exposures carefully, as was the case with electric truck maker Rivian. While the company went public without revenues, it offered us a chance to look out further into the future for a business with a potentially attractive long-term upside. We believe Rivian has a great product in the right area of the market: pickup trucks and SUVs. Its commercial relationship with Amazon will help fund growth as it begins to execute in an increasingly competitive area of the electric vehicle market.”

Photo by Josiah Farrow on Unsplash

Our calculations show that Rivian Automotive, Inc. (NASDAQ:RIVN) failed to obtain a mark 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 -4.00% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Rivian Automotive, Inc. (NASDAQ:RIVN) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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