Here's What Attributed Autonation's (AN) Surge

Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. It appears that the market continues to rise on news of new tariff deals. In the quarter, the Fund was up 8.5% in USD terms, 3.1% in AUD terms, but down 0.1% in EUR terms. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Conventum – Alluvium Global Fund highlighted stocks such as AutoNation, Inc. (NYSE:AN). AutoNation, Inc. (NYSE:AN) is a US-based automotive retailer. One-month return of AutoNation, Inc. (NYSE:AN) was 14.95%, and its shares gained 23.09% of their value over the last 52 weeks. On August 29, 2025, AutoNation, Inc. (NYSE:AN) stock closed at $219.08 per share, with a market capitalization of $8.261 billion.

Conventum – Alluvium Global Fund stated the following regarding AutoNation, Inc. (NYSE:AN) in its second quarter 2025 investor letter:

"Both our auto dealerships performed well. AutoNation, Inc. (NYSE:AN) was up 22.7% and Group 1 Automotive was up 14.5%. Just like nature abhors a vacuum, markets commentators like to attribute cause to price movements. We can’t oblige in this case. All that has happened from our perspective is that these businesses continued their accession from cheap investments to those that are more fairly priced (to reach a level which is still far from expensive). Together, they account for 7.6% of the Fund."

AutoNation, Inc. (NYSE:AN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held AutoNation, Inc. (NYSE:AN) at the end of the second quarter, which was 42 in the previous quarter. AutoNation, Inc. (NYSE:AN) reported total revenue of $7 billion for the quarter, marking an 8% increase from the same period last year, both on a total and same-store basis. While we acknowledge the potential of AutoNation, Inc. (NYSE:AN) 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 AutoNation, Inc. (NYSE:AN) and shared Black Bear Value Partners' 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.