Giverny Capital Asset Management Sold Credit Acceptance Corporation (CACC) Amid Competitive Challenges

Giverny Capital Asset Management, LLC, an investment management company, recently published its fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the fund returned 12.58% compared to 17.88% for the Index. The firm faced a challenging fourth quarter and calendar year, despite solid appreciation. The outperformance of a few large technology companies has negatively impacted performance, given the portfolio’s underweight in large tech and overweight in smaller niche leaders. While portfolio companies are excelling in earnings growth and capital returns, the market is fixated on AI investments, leaving the actual benefits unclear. Additionally, you can review the Portfolio’s top 5 holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Giverny Capital Asset Management highlighted stocks like Credit Acceptance Corporation (NASDAQ:CACC). Credit Acceptance Corporation (NASDAQ:CACC) is a financial services company that offers loan financing programs for automobile dealers. On January 30, 2026, Credit Acceptance Corporation (NASDAQ:CACC) stock closed at $498.24 per share. One-month return of Credit Acceptance Corporation (NASDAQ:CACC) was 8.26%, and its shares lost 2.42% of their value over the last twelve months. Credit Acceptance Corporation (NASDAQ:CACC) has a market capitalization of $5.496 billion.

Giverny Capital Asset Management stated the following regarding Credit Acceptance Corporation (NASDAQ:CACC) in its fourth quarter 2025 investor letter:

“I exited Align Technologies, CarMax, Credit Acceptance Corporation (NASDAQ:CACC) and Fiserv, mostly in October.  We sold the last of our shares on October 1, and I wrote a bit about the decision in the third quarter letter. The deep subprime lending space has gotten more competitive in recent years and I believe Credit Acceptance fell behind the leaders in technology and underwriting skill. I chose to exit rather than wait and see if an ongoing technology upgrade delivers better results. In November, Credit Acceptance announced that CEO Ken Booth would retire.”

Credit Acceptance Corporation (NASDAQ:CACC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 29 hedge fund portfolios held Credit Acceptance Corporation (NASDAQ:CACC) at the end of the third quarter, compared to 39 in the previous quarter. While we acknowledge the risk and potential of Credit Acceptance Corporation (NASDAQ:CACC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Credit Acceptance Corporation (NASDAQ:CACC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Credit Acceptance Corporation (NASDAQ:CACC) and shared Giverny Capital Asset Management’s views on the company in the previous quarter. 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.