Here’s Why Qualivian Investment Partners Decided to Sell Copart (CPRT)

Qualivian Investment Partners, an investment partnership focused on long-only public equities, released its Q3 2025 investor letter. A copy of the letter can be downloaded here. The fund outperformed the iShares MSCI USA Quality Factor ETF (QUAL) by 69.2% and 61.3% on a gross and net basis, since inception through September 30, 2025. It also exceeded the S&P 500 by 32.7% and 26.1% respectively, 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 third-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 company. The one-month return of Copart, Inc. (NASDAQ:CPRT) was 0.77%, and its shares lost 33.41% of their value over the last 52 weeks. On December 22, 2025, Copart, Inc. (NASDAQ:CPRT) stock closed at $39.36 per share, with a market capitalization of $38.1 billion.

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

“We sold our position in Copart, Inc. (NASDAQ:CPRT) and initiated a new position in Brookfield Corp. (BN). Copart Inc. (CPRT) provides online auto 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 (usually autos involved in a crash and deemed a “total loss”) primarily over the internet through proprietary online auction technology. The online auctions sector is a duopoly in which CPRT is the larger and better managed player. The other main player, IAA, was purchased by RB Global (RBA). Armed with RB Global’s deeper pockets, IAA has been more aggressive in the past year with its pricing to gain market share from CPRT and it succeeded with a national insurance carrier switching to IAA. Furthermore, the spike in auto insurance over the past 4–5 years has resulted in an increase in uninsured and under-insured motorists, which has resulted in lower volumes coming through CPRT’s insurance vertical (80% of revs), resulting in CPRT’s revenue and earnings growth decelerating to just below 10% in the past 12 months. With less rational competition and a weakening fundamental backdrop, we decided to exit CPRT and redeploy proceeds into Brookfield Corp.”

In another article, we covered Copart, Inc. (NASDAQ:CPRT) and shared Aoris International Fund’s views 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.

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