Soumya Eswaran

Tue, Jul 1, 2025, 5:45 AM3 min read

Qualivian Investment Partners, an investment partnership focused on long-only public equities, released its Q1 2025 investor letter. A copy of the letter can be downloaded here. The fund outperformed the iShares MSCI USA Quality Factor ETF (QUAL) by 66.0% and 59.4% on a gross and net basis, since inception through March 31, 2025. It also exceeded the S&P 500 by 32.7% and 26.1% respectively, on a gross and net basis. In Q1 2025, the fund outperformed QUAL by 5.3% and 5.2% on a gross and net basis, and we outperformed the S&P 500 by 5.2% and 5.1% on a gross and net basis. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Qualivian Investment 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 -3.41%, and its shares lost 10.28% of their value over the last 52 weeks. On June 30, 2025, Copart, Inc. (NASDAQ:CPRT) stock closed at $49.07 per share, with a market capitalization of $47.448 billion.

Qualivian Investment Partners stated the following regarding Copart, Inc. (NASDAQ:CPRT) in its Q1 2025 investor letter:

"Copart, Inc. (NASDAQ:CPRT) provides online auctions and vehicle remarketing services. It offers vehicle sellers, mostly comprised of P&C insurance companies, a full range of services to process and sell vehicles primarily over the internet through proprietary online auction technology. The online auctions sector is a two-player oligopoly in which CPRT is the larger and better managed player. The sector is characterized by steady and predictable growth and would be very hard to disrupt by an outside player."

A busy car auction being held at a leading car dealership, buyers and sellers engaging in active bidding.

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 Copart, Inc. (NASDAQ:CPRT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.