Baron Funds, an asset management firm, published its “Baron Fifth Avenue Growth Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. Baron Fifth Avenue Growth Fund (the “Fund”) lost 30.6% (Institutional Shares) during the second quarter, which compared to losses of 20.9% for the Russell 1000 Growth Index (“R1KG”) and 16.1% for the S&P 500 Index (“SPX”), the Fund’s benchmarks. Year-to-date, the Fund has lost 45.2% compared to losses of 28.1% and 20.0% for the Fund’s benchmarks, respectively. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Baron Fifth Avenue Growth 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 automaker and automotive technology company with a $33.1 billion market capitalization. Rivian Automotive, Inc. (NASDAQ:RIVN) delivered a 32.40% return since the beginning of the year, while its 12-month returns are down by -63.79%. The stock closed at $37.55 per share on September 09, 2022.
Here is what Baron Fifth Avenue Growth Fund has to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q2 2022 investor letter:
“Rivian Automotive, Inc. designs, manufactures, and sells consumer and commercial electric vehicles. Shares of Rivian declined 48.2% in the second quarter as investors continued rotating out of long-duration assets and have become increasingly concerned about capital intensity and cash burn.
At the same time, Rivian continues to be impacted by supply chain issues which are causing delays in its production ramp. Rivian is addressing those challenges by diversifying its supply chain to alleviate shortages while also consolidating the number of variants in development to reduce cash burn (the company guided that current cash will be enough to support the company’s future platform launch ‘R2’ in 2025). Rivian recently reported stronger-than-expected second quarter production numbers while reiterating its annual guidance of producing 25,000 units.
As semiconductor shortages ease, we believe that the company will be able to rapidly ramp its production. We retain conviction in the shares given management’s vision, Rivian’s product positioning, the company’s relationship with Amazon.com, and its strong balance sheet. As of the end of the first quarter, Rivian had $17 billion of cash and cash equivalents, which will help it overcome the current challenges while taking advantage of the long-term opportunity as the market transitions to electric vehicles.”
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Our calculations show that Rivian Automotive, Inc. (NASDAQ:RIVN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Rivian Automotive, Inc. (NASDAQ:RIVN) was in 35 hedge fund portfolios at the end of the second quarter of 2022, compared to 29 funds in the previous quarter. Rivian Automotive, Inc. (NASDAQ:RIVN) delivered a -3.47% return in the past 3 months.
In September 2022, we also shared another hedge fund’s views on Rivian Automotive, Inc. (NASDAQ:RIVN) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
