Should You Consider Buying Some Rivian Automotive (RIVN) Shares?

Greenlight Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. An annual return of 11.9% was recorded by the fund for the whole year 2021, compared to the 28.7% of the S&P 500 index for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Greenlight Capital, 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 $56.8 billion market capitalization. RIVN delivered a -37.97% return and it closed at $64.32 per share on February 2, 2022.

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

“We made a material gain in Rivian (RIVN) as a result of its IPO. We met RIVN’s sponsors in 2018 as part of our continued work on electric vehicles, and were favorably impressed by their technology and discipline. In mid-2020, we made a small investment at a $10 billion valuation. In November, RIVN went public at a $70 billion valuation and traded to a peak valuation of $162 billion. We hedged in the options market to lock in a minimum valuation of about $120 billion for a good chunk of our position. While we are believers in the company, we did not have material exposure at year end.”

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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. Rivian Automotive, Inc. (NASDAQ: RIVN) delivered a -28.54% return for the past month.

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.