Is it Wise to Invest in Rivian Automotive (RIVN)?

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Longleaf Partners Fund added 6.18% in the fourth quarter, taking returns for the full year to 23.58%, well ahead of its absolute return goal. However, the S&P 500 rallied 11.03% in the fourth quarter, taking the index’s full-year returns to 28.71%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Longleaf Partners Fund, 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 $56.0 billion market capitalization. RIVN delivered 11.05% and it closed at $63.43 per share on February 25, 2022.

Here is what Longleaf Partners Fund has to say about Rivian Automotive, Inc. in its Q4 2021 investor letter:

“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Rivian is a prime example.”

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Our calculations show that Rivian Automotive, Inc. (NASDAQ: RIVN) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. RIVN was in 47 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 0 funds in the previous quarter. Rivian Automotive, Inc. (NASDAQ: RIVN) delivered a -43.43% return in the past 3 months.

In February 2022, 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.