Here’s What Makes Rivian Automotive (RIVN) an Attractive Investment

Alger Capital, an investment management company, released its “Alger Spectra Fund” second quarter investor letter. A copy of the same can be downloaded here. Class A shares of the fund in the second quarter underperformed the Russell 3000 Growth Index. Communication services and material sectors significantly contributed to the fund’s relative performance, while Consumer discretionary and energy sectors were the major performance detractors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Alger Capital discussed stocks like Rivian Automotive, Inc. (NASDAQ:RIVN). Based in San Jose, California, Rivian Automotive, Inc. (NASDAQ:RIVN) is an electric vehicle company that designs, develops, manufactures, and distributes electric vehicles. On August 31, 2022, Rivian Automotive, Inc. (NASDAQ:RIVN) stock closed at $32.71 per share. One-month return of Rivian Automotive, Inc. (NASDAQ:RIVN) was -10.60%, and year-to-date its shares lost 68.45% of their value. Rivian Automotive, Inc. (NASDAQ:RIVN) has a market capitalization of $28.896 billion.

Here is what Alger Capital specifically said about Rivian Automotive, Inc. (NASDAQ:RIVN):

“Rivian Automotive, Inc. (NASDAQ:RIVN) is a vertically integrated electric vehicle (EV) manufacturer producing consumer and commercial vehicles. Rivian plans to capture more of the lifetime value of vehicles than traditional original equipment manufacturers by offering insurance, software like advanced driver assistance, and charging network memberships. the shares contributed to performance as Rivian’s quarterly production rate accelerated despite industry supply chain issues.

Additionally, management reiterated its guidance and explained that it has significant pre-orders (including a large delivery van order) and increased pricing underscores healthy demand for its vehicles.”

Image by Mikes-Photography from Pixabay

Rivian Automotive, Inc. (NASDAQ:RIVN) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, Rivian Automotive, Inc. (NASDAQ:RIVN) was held by 35 hedge fund portfolios at the end of the second quarter, which was 29 in the previous quarter.

We discussed Rivian Automotive, Inc. (NASDAQ:RIVN) in another article and shared the best electric vehicle stocks to buy. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.