Here’s Why Giverny Capital Asset Management Sold Credit Acceptance Corporation (CACC) in Q3

Giverny Capital Asset Management, LLC, an investment management company, recently published its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The portfolio generated good results in the third quarter and returned 6.78% compared to 8.12% for the S&P 500. YTD, the fund returned 12.57% compared to 14.83% for the index. Additionally, you can review the fund’s top 5 holdings to see its best picks for 2025.

In its third-quarter 2025 investor letter, Giverny Capital Asset Management highlighted stocks such as Credit Acceptance Corporation (NASDAQ:CACC). Credit Acceptance Corporation (NASDAQ:CACC) is a financing company that offers financing programs, and related products and services. The one-month return of Credit Acceptance Corporation (NASDAQ:CACC) was 3.66%, and its shares lost 6.95% of their value over the last 52 weeks. On December 08, 2025, Credit Acceptance Corporation (NASDAQ:CACC) stock closed at $461.29 per share, with a market capitalization of $5.184 billion.

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

“As for sales, we trimmed Credit Acceptance Corporation (NASDAQ:CACC) throughout the third quarter and exited fully on October 1. We believe Credit Acceptance has fallen behind other leading subprime lenders in both technology and underwriting sophistication and may have a hard time catching up.”

Credit Acceptance Corporation (NASDAQ:CACC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Credit Acceptance Corporation (NASDAQ:CACC) at the end of the third quarter, which was 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 a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.