Renaissance Investment Management, an investment management company, released its Q1 2026 “Large Cap Growth Strategy.” A copy of the letter can be downloaded here. Stocks fell sharply in the first quarter due to the Iran conflict. The Energy and Materials sectors outperformed, Financials and Consumer Discretionary lagged. Large-cap stocks underperformed smaller-cap stocks, and Value outperformed Growth. The portfolio outperformed the S&P 500’s -4.3% return but lagged the Russell 1000 Growth Index, which fell 9.8%. In this uncertain environment, the firm remains aware of the risks and emerging investment opportunities. In addition, you can check the Strategy’s top 5 holdings for its best picks for 2026.
In its first-quarter 2026 investor letter, Renaissance Investment Large Cap Growth Strategy highlighted stocks like Copart, Inc. (NASDAQ:CPRT). Copart, Inc. (NASDAQ:CPRT) is an online auction and vehicle remarketing services company. On June 16, 2026, Copart, Inc. (NASDAQ:CPRT) closed at $30.74 per share. One-month return of Copart, Inc. (NASDAQ:CPRT) was -7.23%, and its shares lost 35.99% over the past 52 weeks. Copart, Inc. (NASDAQ:CPRT) has a market capitalization of $28.39 billion.
Renaissance Investment Large Cap Growth Strategy stated the following regarding Copart, Inc. (NASDAQ:CPRT) in its Q1 2026 investor letter:
“Conversely, we sold our position in Copart, Inc. (NASDAQ:CPRT), the largest provider of salvage car auctions, following a deterioration in fundamental factors. We believe that the operating environment for Copart will continue to face fundamental headwinds in the near-to-intermediate term, as the rising costs of automotive insurance have caused financially stretched consumers to drop collision coverage. Historically, Copart’s contractual agreements with insurance companies gave them a steady supply of damaged automobiles, driving its auction volumes. However, the absence of collision insurance means that these cars are no longer obligated to go to Copart auctions, creating headwinds for Copart’s vehicle inventories and auction volumes.”
Copart, Inc. (NASDAQ:CPRT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 57 hedge fund portfolios held Copart, Inc. (NASDAQ:CPRT) at the end of the first quarter, compared to 68 in the previous quarter. In Q2 FY 2026, Copart, Inc.’s (NASDAQ:CPRT) consolidated revenue grew to $1.24 billion, up 2.1% from last year fueled by robust service and purchase vehicle sales. While we acknowledge the risk and potential of Copart, Inc. (NASDAQ:CPRT) 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 COPART, INC. (NASDAQ:CPRT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Copart, Inc. (NASDAQ:CPRT) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q1 2026 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.
