5 Best Stocks to Buy According to CAS Investment Partners

4. Carvana Co. (NYSE:CVNA)

Net Gains: 62%

Carvana Co. (NYSE:CVNA) operates an e-commerce platform for buying and selling used cars in the US. The platform makes it easy for people to research and identify a car, inspect it using 360-degree vehicle imaging technology, obtain financing, and purchase it

Sosin first got involved in Carvana Co. (NYSE:CVNA) in the first quarter of 2018 by purchasing 2 million shares worth $46 million, which accounted for 20% of its portfolio at the time. CAS Investment Partners would increase stakes in the company that saw the stock account for 42% of the portfolio as of the end of 2019.

The hedge fund increased stakes, taking total holdings to 6.8 million shares as of the end of last year. While the hedge fund purchased the stock for about $20 a share, the stock gained more than 1500% by mid-year 2021, generating significant returns for the hedge fund. Nevertheless, the stock has given back a good chunk of the gains and is only up by about 62% compared to the initial purchase price.

In Q2 2023, 41 out of the 910 hedge funds polled by Insider Monkey had also invested in Carvana Co. (NYSE:CVNA). Zachary Sternberg And Benjamin Stein’s Spruce House Investment Management is Carvana Co. (NYSE:CVNA)’s largest investor. It owns 10 million shares that are worth $259.20 million. On September 18, Wedbush raised the price target on Carvana Co. (NYSE:CVNA) to $48 from $40 and upgraded it to ‘Neutral’ from ‘Underperform.’