5 Stocks Hedge Funds Dumped Before the Market Crash

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In this article we will list the top 5 stocks that hedge funds dumped before the market crash. For a detailed discussion as well as a more comprehensive list please see 10 Stocks Hedge Funds Dumped Before the Market Crash. Here are the top 5 stocks that hedge funds dumped during the first quarter:

5. Rivian Automotive Inc (RIVN):

Number of Hedge Funds: 29 (2022Q1)
Number of Hedge Funds: 47 (2021Q4)

Hedge funds couldn’t sell Rivian (RIVN) fast enough as the number of bullish hedge fund positions in RIVN went down by 18. Tiger Global, Candlestick Capital, and Suvretta were among the hedge funds that dumped Rivian. Here is what Baron Funds said about RIVN in its latest investor letter:

Rivian Automotive, Inc. designs, manufactures, and sells consumer and commercial electric vehicles. Shares of Rivian continued its volatile trading following the stock’s IPO in late 2021, declining 52% in the first quarter as investors rotated out of fast-growing long-duration stocks and as industrywide supply-chain issues delayed Rivian’s production ramp. In addition, even while other automotive companies raised prices due to inflationary pressures, Rivian launched a price increase campaign that was not well communicated and, as a result, was met with dissatisfaction by existing reservation holders. While this was an unforced error, the company quickly corrected course, reversing its decision to raise prices for existing reservations, while maintaining the increase on new buyers (which has not caused a material impact to demand). We retain conviction in the shares given management’s vision, Rivian’s product positioning, the company’s relationship with Amazon.com, and the company’s strong balance sheet, 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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