Baron Funds, an investment management company, released its “Baron Asset Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund increased by 12.21% in the fourth quarter, outperforming the Russell Midcap Growth Index which returned 6.90%. Stock selection and underexposure to stocks with high measures of Residual Volatility and Beta led the fund to outperform in the quarter. For 2022, the fund fell 25.87% compared to a -26.72% return for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Asset Fund highlighted stocks like Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q4 2022 investor letter. Headquartered in San Jose, California, Rivian Automotive, Inc. (NASDAQ:RIVN) is an electric vehicles and accessories manufacturer. On February 13, 2023, Rivian Automotive, Inc. (NASDAQ:RIVN) stock closed at $18.92 per share. One-month return of Rivian Automotive, Inc. (NASDAQ:RIVN) was 15.02%, and its shares lost 69.80% of their value over the last 52 weeks. Rivian Automotive, Inc. (NASDAQ:RIVN) has a market capitalization of $16.714 billion.
Baron Asset Fund made the following comment about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q4 2022 investor letter:
“Consumer Discretionary investments along with the lack of exposure to the strong performing Energy sector offset a portion of the above-mentioned gains. Within Consumer Discretionary, the underperformance of electric vehicle (EV) manufacturer Rivian Automotive, Inc. (NASDAQ:RIVN) coupled with lower exposure to this better performing sector hampered relative results. Rivian’s shares fell as investors fretted over the company’s unit economics and how macroeconomic uncertainty is impacting the EV industry.
Rivian Automotive, Inc. is an EV manufacturer producing vehicles for the consumer and corporate delivery van markets. Its shares were under pressure during the quarter. Investors remained focused on the company’s execution challenges, the implied unit economics for its vehicles, and near-term headwinds for the automotive industry stemming from a weaker global economy. Despite these headwinds, we are comfortable with Rivian’s liquidity position and its competitive position within the EV industry, which we believe will continue to grow at impressive rates. Rivian should also benefit from its positive product reviews, its integrated technology approach, and its industry partnerships.”
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Rivian Automotive, Inc. (NASDAQ:RIVN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Rivian Automotive, Inc. (NASDAQ:RIVN) at the end of the third quarter, which was 35 in the previous quarter.
We discussed Rivian Automotive, Inc. (NASDAQ:RIVN) in another article and shared the list of hot EV stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
