What Makes Advance Auto Parts (AAP) an "Ugly Duckling"?

Investment management company Curreen Capital released its fourth-quarter 2025 Investor letter. A copy of the letter can be downloaded here. Curreen Capital Partners reported robust results in 2025, retuning 10.5% in Q4 and 30.97% for the full year. The firm focuses on investing in "ugly ducklings", i.e., companies that are good, well-managed, and trading at an attractive price. The firm was consistent with its investment plan, and the "ugly duckling" holdings performed well and exhibited solid results. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Curreen Capital highlighted Advance Auto Parts, Inc. (NYSE:AAP). Based in Raleigh, North Carolina, Advance Auto Parts, Inc. (NYSE:AAP) is an automotive replacement parts and accessories provider. The one-month return of Advance Auto Parts, Inc. (NYSE:AAP) was 23.90%, and its shares lost 0.39% of their value over the last 52 weeks. On January 30, 2026, Advance Auto Parts, Inc. (NYSE:AAP) stock closed at $48.01 per share, with a market capitalization of $2.88 billion.

Curreen Capital stated the following regarding Advance Auto Parts, Inc. (NYSE:AAP) in its fourth quarter 2025 investor letter:

"Advance Auto Parts, Inc. (NYSE:AAP): Advance Auto Parts is a store-based retailer of aftermarket automotive parts and supplies. This includes batteries, windshield wipers and fluid, air filters, motor oil, etc. The company has historically earned decent (approaching 20%) returns on tangible capital. The company is attempting a turnaround, and has fixed its balance sheet and is improving operations. Advance Auto currently trades at an attractive upside-to-downside ratio."

Advance Auto Parts, Inc. (NYSE:AAP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 32 hedge fund portfolios held Advance Auto Parts, Inc. (NYSE:AAP) at the end of the third quarter, compared to 34 in the previous quarter. While we acknowledge the potential of Advance Auto Parts, Inc. (NYSE:AAP) 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 Advance Auto Parts, Inc. (NYSE:AAP) and shared the list of best auto parts stocks according to hedge funds. In addition, please check out our hedge fund investor letters Q4 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.