Giverny Capital Asset Management Sold Credit Acceptance Corporation (CACC) Amid Competitive Challenges

1 month ago 29

Soumya Eswaran

Mon, February 2, 2026 astatine 6:32 AM CST 3 min read

Giverny Capital Asset Management, LLC, an concern absorption company, precocious published its fourth-quarter 2025 capitalist letter. A transcript of the aforesaid tin beryllium downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the money returned 12.58% compared to 17.88% for the Index. The steadfast faced a challenging 4th fourth and calendar year, contempt coagulated appreciation. The outperformance of a fewer ample exertion companies has negatively impacted performance, fixed the portfolio's underweight successful ample tech and overweight successful smaller niche leaders. While portfolio companies are excelling successful net maturation and superior returns, the marketplace is fixated connected AI investments, leaving the existent benefits unclear. Additionally, you tin reappraisal the Portfolio’s apical 5 holdings to spot its champion picks for 2025.

In its fourth-quarter 2025 capitalist letter, Giverny Capital Asset Management highlighted stocks similar Credit Acceptance Corporation (NASDAQ:CACC). Credit Acceptance Corporation (NASDAQ:CACC) is simply a fiscal services institution that offers indebtedness financing programs for automobile dealers. On January 30, 2026, Credit Acceptance Corporation (NASDAQ:CACC) banal closed astatine $498.24 per share. One-month instrumentality of Credit Acceptance Corporation (NASDAQ:CACC) was 8.26%, and its shares mislaid 2.42% of their worth implicit the past 12 months. Credit Acceptance Corporation (NASDAQ:CACC) has a marketplace capitalization of $5.496 billion.

Giverny Capital Asset Management stated the pursuing regarding Credit Acceptance Corporation (NASDAQ:CACC) successful its 4th fourth 2025 capitalist letter:

"I exited Align Technologies, CarMax, Credit Acceptance Corporation (NASDAQ:CACC) and Fiserv, mostly successful October. We sold the past of our shares connected October 1, and I wrote a spot astir the determination successful the 3rd 4th letter. The heavy subprime lending abstraction has gotten much competitory successful caller years and I judge Credit Acceptance fell down the leaders successful exertion and underwriting skill. I chose to exit alternatively than hold and spot if an ongoing exertion upgrade delivers amended results. In November, Credit Acceptance announced that CEO Ken Booth would retire."

Credit Acceptance Corporation (NASDAQ:CACC) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 29 hedge money portfolios held Credit Acceptance Corporation (NASDAQ:CACC) astatine the extremity of the 3rd quarter, compared to 39 successful the erstwhile quarter. While we admit the imaginable of Credit Acceptance Corporation (NASDAQ:CACC) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.