Baron Funds, an investment management company, released its “Baron Opportunity Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund outperformed the broader market and increased by 17.96% (Institutional Shares) compared to a 13.85% return for the Russell 3000 Growth Index and a 7.50% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Opportunity Fund highlighted stocks like Rivian Automotive, Inc. (NASDAQ:RIVN) in the first quarter 2023 investor letter. Headquartered in Irvine, California, Rivian Automotive, Inc. (NASDAQ:RIVN) is an electric vehicles and accessories manufacturer. On May 9, 2023, Rivian Automotive, Inc. (NASDAQ:RIVN) stock closed at $13.86 per share. One-month return of Rivian Automotive, Inc. (NASDAQ:RIVN) was -2.33%, and its shares lost 32.72% of their value over the last 52 weeks. Rivian Automotive, Inc. (NASDAQ:RIVN) has a market capitalization of $13.019 billion.
Baron Opportunity Fund made the following comment about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q1 2023 investor letter:
“Shares of Rivian Automotive, Inc. (NASDAQ:RIVN), a U.S.-based EV manufacturer, fell during the quarter. Despite seven-fold growth in its monthly production rate between late 2021 and the end of 2022, production guidance for 2023 missed analyst forecasts because of supply-chain constraints, principally semiconductors. Moreover, notwithstanding an attractive long-term opportunity and favorable product reviews by customers and industry experts, investors remain concerned about liquidity risks as the company burns cash during its early production stage while unit economics remain challenged. Vehicle sales through the end of 2023 will be at Rivian’s legacy vehicle pricing, which was set before inflationary and supply-chain pressures emerged last year across the entire automotive space. New pricing and improved unit economics should be realized in 2024, and Rivian is slated to launch its R2 vehicle line in 2026. We have adjusted Rivian to a smaller position in our portfolio. Despite near-term macro and execution risks, we do believe that Rivian’s current valuation offers attractive long-term returns. During the year, we will remain focused on Rivian’s production ramp, vehicle demand, unit-level economics, and cost controls as well as progress on its R2 vehicle platform, its next-gen Enduro electric motor, and its battery system advancements.”
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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, 29 hedge fund portfolios held Rivian Automotive, Inc. (NASDAQ:RIVN) at the end of the fourth quarter which was 30 in the previous quarter.
We discussed Rivian Automotive, Inc. (NASDAQ:RIVN) in another article and shared the list of largest VC-backed companies in the US in 2023. In addition, please check out our hedge fund investor letters Q1 2023 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.
