ACV Auctions (ACVA) Fell in Q1 Despite Strong Results

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Hedged Equity Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The uncertainty surrounding prospective tariff policies weighed on investor sentiment and risk assets in the first quarter of 2025. The fund returned -0.15% (net) in the quarter compared to the S&P 500 Index’s -4.27% return and its secondary benchmark, the CBOE S&P 500 Buy/Write Index’s -3.09% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Meridian Hedged Equity Fund highlighted stocks such as ACV Auctions Inc. (NYSE:ACVA). ACV Auctions Inc. (NYSE:ACVA) provides a digital marketplace that enables buyers and sellers to connect for the online auction of wholesale vehicles. The one-month return of ACV Auctions Inc. (NYSE:ACVA) was -0.83%, and its shares lost 11.69% of their value over the last 52 weeks. On June 10, 2025, ACV Auctions Inc. (NYSE:ACVA) stock closed at $16.69 per share, with a market capitalization of $3.011 billion.

Meridian Hedged Equity Fund stated the following regarding ACV Auctions Inc. (NYSE:ACVA) in its Q1 2025 investor letter:

“ACV Auctions Inc. (NYSE:ACVA) operates a digital marketplace that enables automotive dealerships to more efficiently and transparently buy and sell wholesale vehicles. The company connects dealers nationwide through a data-driven platform enhanced by AI-based inspection tools and complementary services such as financing and transport services. This integrated ecosystem supports high customer retention and positions the company to benefit from ongoing digitization trends within the wholesale automotive industry. Despite continued strong fundamentals—including disciplined cost management and ongoing market share gains—the stock was negatively impacted by broader uncertainty around used-vehicle demand and macroeconomic concerns. Nonetheless, we maintain confidence in ACV’s management team and business model, and long-term market opportunity.”

Is ACV Auctions Inc. (ACVA)the High Growth Low Debt Stock to Invest in Now?

A row of used cars with shoppers inspecting them on a lot.

ACV Auctions Inc. (NYSE:ACVA) is in 10th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held ACV Auctions Inc. (NYSE:ACVA) at the end of the first quarter, which was 35 in the previous quarter. ACV Auctions Inc.’s (NYSE:ACVA) first quarter revenue grew 25% year-over-year to $183 million. While we acknowledge the potential of ACV Auctions Inc. (NYSE:ACVA) 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.

In another article, we covered ACV Auctions Inc. (NYSE:ACVA) and shared the list of high growth low debt stocks to invest in. In addition, please check out our hedge fund investor letters Q1 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.