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Should You Liquidate Your Position in Rivian Automotive (RIVN)?

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -4.92% net compared to -0.12% return for the Russell 2500 Growth Index. In the quarter, market dynamics worked against the fund’s investment strategy. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Meridian Funds highlighted stocks like Rivian Automotive, Inc. (NASDAQ:RIVN) in the Q3 2022 investor letter. Based in San Jose, California, Rivian Automotive, Inc. (NASDAQ:RIVN) is an electric vehicle company that designs, develops, manufactures, and distributes electric vehicles. On December 7, 2022, Rivian Automotive, Inc. (NASDAQ:RIVN) stock closed at $27.94 per share. One-month return of Rivian Automotive, Inc. (NASDAQ:RIVN) was -0.46% and its shares lost 77.12% of their value over the last 52 weeks. Rivian Automotive, Inc. (NASDAQ:RIVN) has a market capitalization of $24.682 billion.

Meridian Funds made the following comment about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q3 2022 investor letter:

Rivian Automotive, Inc. (NASDAQ:RIVN) manufactures electric vehicles (EVs) for the consumer and commercial markets. We initially invested in the company when it was privately owned. Among the many things that differentiate this startup is its substantial cash balance and relationship with Amazon, which is both an investor in the company and the first customer for Rivian’s commercial van. Several positive developments contributed to share strength in the quarter, including the company’s announcement that production of its R1 pickup trucks and EV delivery vans increased nearly 70% over the previous quarter. Management also reaffirmed its production target of 25,000 vehicles for 2022. Despite raising the price of its R1 truck earlier this year, Rivian continued to see strong demand for its vehicles, demonstrated by 98,000 pre-orders for its R1 truck and SUV. Although we are pleased with the company’s progress, we liquidated our position as Rivian approached the high end of our market cap threshold and its relative valuation became less attractive.”

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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 best growth stocks to buy according to George Soros. In addition, please check out our hedge fund investor letters Q3 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.