The electric vehicle (EV) industry is in an intriguing spot for potential investors. Broadly speaking, optimism has turned to pessimism on Wall Street as many start-up EV makers are facing cash crunches and slowing demand. That said, EVs still appear almost certain to go mainstream, and the tantalizing possibility of high long-term returns for those who pick one of the eventual winners in the space is a prospect that still has many investors' attention.

If you're looking for clues about which young EV company to choose, consider this: One massive hedge fund recently upped its stake in Rivian Automotive (NASDAQ: RIVN) by 4,221%.

Watching hedge funds and the stocks they buy and sell can give investors insights into what the fund managers consider their best ideas. Typically, a manager will have a handful of great ideas that occupy the largest positions in their hedge fund, and a much larger number of diversified smaller ideas that each hold less weight. Essentially, a fund's top holdings represent higher conviction ideas than its smaller positions.

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Source Fool.com