Here Are The Key Pillars Of Group 1 Automotive's (GPI) Competitive Strength

LRT Capital Management, an investment management company, released its “LRT Global Opportunities Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy leverages a systematic long/short approach to generate positive returns while effectively controlling downside risks and maintaining low net exposure to the equity markets. In September, the strategy returned -8.00% (net), and the YTD return was -0.17%. It was a challenging month for the strategy, as the market indexes surged, with a select few highly overvalued mega-cap stocks, while the rest of the market declined. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, LRT Global Opportunities Strategy highlighted stocks such as Group 1 Automotive, Inc. (NYSE:GPI). Group 1 Automotive, Inc. (NYSE:GPI) operates in the automotive retail industry, headquartered in Houston, Texas. The one-month return of Group 1 Automotive, Inc. (NYSE:GPI) was -8.81%, and its shares gained 21.52% of their value over the last 52 weeks. On October 7, 2025, Group 1 Automotive, Inc. (NYSE:GPI) stock closed at $429.33 per share, with a market capitalization of $5.555 billion.

LRT Global Opportunities Strategy stated the following regarding Group 1 Automotive, Inc. (NYSE:GPI) in its third quarter 2025 investor letter:

"Group 1 Automotive, Inc. (NYSE:GPI) operates as a premier, internationally diversified automotive retailer, with a significant presence in both the United States and the United Kingdom. The company has distinguished itself through a disciplined growth strategy and a focus on operational excellence, managing a portfolio of dealerships that represent many of the world’s leading automotive brands. By adhering to a rigorous framework of strategic acquisitions, prudent capital management, and superior customer service, Group 1 has built a resilient and compounding enterprise in a highly fragmented industry.

The company’s competitive strength is derived from several key pillars. First, its international diversification provides a natural hedge against regional economic fluctuations and allows management to deploy capital in the most attractive markets. The U.K. operations, in particular, represent a significant and profitable segment that differentiates Group 1 from its purely domestic peers. Second, the company maintains a strong focus on luxury and import brands, which typically attract a more affluent and resilient customer demographic and generate higher-margin service business. This parts and service segment is the operational cornerstone of the company, providing a stable, high-margin, annuity-like revenue stream that performs well throughout economic cycles and is less susceptible to the cyclicality of new vehicle sales.…” (Click here to read the full text)

Group 1 Automotive, Inc. (NYSE:GPI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Group 1 Automotive, Inc. (NYSE:GPI) at the end of the second quarter, which was 38 in the previous quarter. While we acknowledge the potential of GROUP 1 AUTOMOTIVE, INC. (NYSE:GPI) 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 Group 1 Automotive, Inc. (NYSE:GPI) and shared the list of best automotive stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 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.