Is it a Smart Choice to Invest in Rivian Automotive (RIVN)?

Comus Investment LLC, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of -1.42% before fees was recorded by the fund for the fourth quarter of 2021, while its benchmark, the S&P 500 Index, by comparison, returned 11.03% over the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Comus Investment, in its Q4 2021 investor letter, mentioned Rivian Automotive, Inc. (NASDAQ: RIVN) and discussed its stance on the firm. Rivian Automotive, Inc. is an Irvine, California-based automaker company with a $71.9 billion market capitalization. RIVN delivered a -30.48% and it closed at $81.44 per share on January 10, 2022.

Here is what Comus Investment has to say about Rivian Automotive, Inc. in its Q4 2021 investor letter:

“Thesis investing ties hand-in-hand with the concept of intrinsic value, the all-important but equally useless term which suggests investors can estimate what companies are worth, with these estimates frequently supported by data which don’t exist, or which are expected to appear in the future, and which often deviate substantially from that shown in the past or present. These estimates of intrinsic value can vary dramatically based on our inputs of growth and profitability, and they are all incorporated into the stock pricing we currently see. Rivian, for example, with its $90 billion valuation and complete lack of any revenue (though it does have pre-orders), must incorporate the idea that this venture, which is currently smaller than your local coffee shop, will be wildly successful. People are clearly paying good money for it and have optimism about its future.”

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Based on our calculations, Rivian Automotive, Inc. (NASDAQ: RIVN) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. Rivian Automotive, Inc. (NASDAQ: RIVN) delivered a -16.31% return in the past 5 days.

In December 2021, we also shared another hedge fund’s views on RIVN in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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