Slow Volume Growth Hurt Copart (CPRT) in Q4

Madison Investments, an investment advisor, released its fourth-quarter 2025 investor letter for the “Madison Large Cap Fund”. A copy of the letter can be downloaded here. In the fourth quarter, the S&P 500 returned 2.65%, resulting in a full-year return of 17.9% for 2025. Over the last three years, the Index has achieved annual growth of over 21%. Following the recent trends, market leadership was defined by High Beta and Momentum factors, with narrow participation. However, in the fourth quarter, the market saw slight improvements in previously lagging sectors like Healthcare, Financials, and Consumer Discretionary. Still, mega-cap technology companies remained the primary drivers of the S&P 500's overall return, indicating high stock concentration. Against this backdrop, the Madison Large Cap Fund (Class I) appreciated 3.43% compared to the S&P 500 Index’s 2.65% return. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks like Copart, Inc. (NASDAQ:CPRT). Copart, Inc. (NASDAQ:CPRT) is an online vehicle auction and remarketing services company. On February 24, 2026, Copart, Inc. (NASDAQ:CPRT) stock closed at $35.28 per share. One-month return of Copart, Inc. (NASDAQ:CPRT) was -13.15%, and its shares lost 37.30% over the past 52 weeks. Copart, Inc. (NASDAQ:CPRT) has a market capitalization of $34.15 billion.

Madison Large Cap Fund stated the following regarding Copart, Inc. (NASDAQ:CPRT) in its fourth quarter 2025 investor letter:

"The bottom five detractors for the quarter were Fiserv, CDW Corporation, Copart, Inc. (NASDAQ:CPRT), Progressive, and Texas Instruments. Volume growth at Copart, which manages salvage vehicle auctions, continued to slow as a result of more under-and-uninsured auto drivers and shifting market share amongst insurance carriers. Still, Copart’s earnings have grown at a healthy clip over the past few years and its competitive position remains strong."

Copart, Inc. (NASDAQ:CPRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 68 hedge fund portfolios held Copart, Inc. (NASDAQ:CPRT) at the end of the fourth quarter, up from 59 in the previous quarter. While we acknowledge the potential of Copart, Inc. (NASDAQ: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 a list of best extremely profitable stocks to invest in 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.