Wedgewood Partners Continues to Hold Copart (CPRT)

Wedgewood Partners, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, Wedgewood Composite’s net return was 7.1% compared to the Standard & Poor’s 10.9%, the Russell 1000 Growth Index’s 17.8%, and the Russell 1000 Value Index’s 3.8% return for the same period. In addition, you can check the fund’s best 5 holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as Copart, Inc. (NASDAQ:CPRT). Copart, Inc. (NASDAQ:CPRT) is an online auction and vehicle remarketing services providing company. The one-month return of Copart, Inc. (NASDAQ:CPRT) was -4.16%, and its shares lost 11.15% of their value over the last 52 weeks. On July 17, 2025, Copart, Inc. (NASDAQ:CPRT) stock closed at $45.89 per share, with a market capitalization of $44.373 billion.

Wedgewood Partners stated the following regarding Copart, Inc. (NASDAQ:CPRT) in its second quarter 2025 investor letter:

"Copart, Inc. (NASDAQ:CPRT) detracted from performance during the quarter. Adjusted volumes were flat (up +1%), which was a bit weaker than expected. Copart continues to have dominant market share in the salvage resale market. However, their primary competitor, IAA, recently bid aggressively for market share at a large insurance carrier customer (likely Progressive). While disruptive in the near-term, we believe this shift in volume is not sustainable because Copart's service offering is superior to IAA’s. We continue to hold Copart as a core weighting in portfolios."

Copart, Inc. (NASDAQ:CPRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Copart, Inc. (NASDAQ:CPRT) at the end of the first quarter, which was 53 in the previous quarter. While we acknowledge the potential of CPRT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Copart, Inc. (NASDAQ:CPRT) and shared SVN Capital Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 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.