Hedge Funds Brace for Impact: Top 5 Stocks to Dump Now

4. Rivian Automotive, Inc. (NASDAQ:RIVN)

Number of Hedge Fund Holders in Q1 2022: 29

Number of Hedge Fund Holders in Q4 2021: 47

Rivian Automotive, Inc. (NASDAQ:RIVN) is a California-based automotive company that deals in electric vehicles, batteries, EV charging, and vehicle insurance. The stock price has fallen more than 72% year-to-date as of June 27. Similarly, Rivian Automotive, Inc. (NASDAQ:RIVN) has lost the favor of elite hedge funds. In Q1 2022, the number of long hedge fund positions declined to 29 from 47 in the prior quarter. 

On June 27, Mizuho analyst Vijay Rakesh slashed the price target on Rivian Automotive, Inc. (NASDAQ:RIVN) to $70 from $80 and kept a Buy rating on the shares. The analyst “conservatively lowered” unit delivery estimates for Q2 and the second half of 2022 to account for Shanghai lockdowns and supply chain challenges. However, he forecasts robust EV demand regardless of soaring prices, with larger lead times, as production stabilizes and new models are introduced. 

According to Insider Monkey’s Q1 database, Philippe Laffont’s Coatue Management held the biggest stake in Rivian Automotive, Inc. (NASDAQ:RIVN), with 30.8 million shares worth $1.5 billion. 

Here is what Baron Global Advantage Fund has to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q1 2022 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 industry wide 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.”