Baron Funds, an investment management company, released its “Baron Opportunity Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund fell 5.03% (Institutional Shares) underperforming the broader markets, compared to the Russell 3000 Growth Index’s 3.34% decline and the S&P 500 Index’s 3.27% decline. Over the year-to-date period, the Fund has shown a growth of 30.3%, outperforming both the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Opportunity Fund highlighted stocks like Rivian Automotive, Inc. (NASDAQ:RIVN) in the third quarter 2023 investor letter. Headquartered in Irvine, California, Rivian Automotive, Inc. (NASDAQ:RIVN) is an electric vehicles and accessories manufacturer. On October 30, 2023, Rivian Automotive, Inc. (NASDAQ:RIVN) stock closed at $15.72 per share. One-month return of Rivian Automotive, Inc. (NASDAQ:RIVN) was -33.56%, and its shares lost 55.05% of their value over the last 52 weeks. Rivian Automotive, Inc. (NASDAQ:RIVN) has a market capitalization of $14.905 billion.
Baron Opportunity Fund made the following comment about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q3 2023 investor letter:
“Shares of Rivian Automotive, Inc. (NASDAQ:RIVN), a U.S.-based electric vehicle manufacturer, rose during the quarter. As we wrote last quarter, we concluded that Rivian was hitting a turning point in its execution, particularly ramping vehicle production, rolling out engineering innovations (such as the Enduro motor and lithium-iron-phosphate (LFP) battery pack) and lowering costs-of-goods-sold per vehicle. Rivian’s second quarter results demonstrated that Rivian’s unit-level economics continued to improve due to the company’s rising production rate, which is driving better fixed cost absorption, and the ramp-up of its cheaper in-house technologies, including Enduro and LFP batteries. Management expects a long road of profitability in the years ahead as Rivian continues to scale production. While backlog remains healthy for now, we are monitoring levels as production volume and competition increase. We think Rivian will benefit from the release of its next-generation R2 model, which it plans to unveil in early 2024. More recently, the company raised $1.5 billion of additional funds to support its longer-term business plan and reported third quarter production and delivery figures that beat Street expectations and confirmed that it remained on track to hit its 52,000 annual production target.”
A close up of an Electric Vehicle charging station, emphasizing the innovative technology.
Rivian Automotive, Inc. (NASDAQ:RIVN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Rivian Automotive, Inc. (NASDAQ:RIVN) at the end of second quarter which was 31 in the previous quarter.
We discussed Rivian Automotive, Inc. (NASDAQ:RIVN) in another article and shared George Soros’ net worth and top five holdings heading into 2024. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
