- George Soros owns 19.83 million shares of RIVN stock
- During the first quarter, Soros also purchased 60,45o call options on the electric vehicle (EV) company
- Soros Fund Management has an average holding period of 2.86 quarters
George Soros’ family office, Soros Fund Management, has more than $6.5 billion in assets under management (AUM). The fund’s largest position is Rivian (NASDAQ:RIVN) — and by a large margin.
Soros first rose to investing stardom in 1992, when he successfully “broke the Bank of England.” The investor shorted the British Pound and pocketed over $1 billion in the process after the bank voluntarily left the European Monetary System (EMS).
Now, Soros is betting big on EV company Rivian. Soros Management also holds positions in other EV-related companies, such as Fisker (NYSE:FSR) and Solid Power (NASDAQ:SLDP). Let’s get into the details.
George Soros Bets Big on RIVN Stock
As of March 31, Soros owned 19.83 million shares of RIVN stock, making him a top ten shareholder. In addition, the position was valued at $996 million at the end of Q1.
Rivian listed Soros as an “interested investor” during the company’s initial public offering (IPO) in November and the family office purchased all 19.83 million shares during Q4. Additionally, Soros has 15.16% of his entire portfolio in the EV company.
While Soros’ common stock position remained unchanged, he did purchase call options on RIVN stock during Q1. The famed investor purchased 60,450 call options during the quarter, which can be converted into 6,045,000 shares if they close in the money upon expiration. The call options on RIVN account for 4.62% of Soros’ 13F portfolio, making it his fourth-largest position. The U.S. Securities and Exchange Commission (SEC) does not require institutional investors to disclose the strike price and expiration date at which the options were purchased.
Rivian Faces Heavy Losses in 2022
This year has proven difficult year so far for Rivian. Shares of RIVN stock have fallen by more than 70% year-to-date (YTD), driven by component shortages, supply-chain challenges and rising interest rates.
On top of this, Soros is a relatively active investor with a high portfolio turnover rate. He has an average holding period of 2.86 quarters for stocks in his portfolio. For stocks in his top ten positions, he also has an average holding period of 3.5 quarters. This means that Soros may alter his RIVN position sometime this year.
At the end of the day, though, Soros’ support for Rivian is a huge plus. The fact that he doubled down on call options during Q1 also suggests he sees upside for the company in the near term.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
