Here’s Why Weitz Investment Remains Confident in LKQ

Weitz Investment Management, an investment management firm, released its “Weitz Multi Cap Equity Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. In the third quarter, the Institutional Class of the Multi Cap Equity Fund yielded a return of -2.06%, while the Russell 3000 experienced a slightly greater decline at -3.25%. When examining the year-to-date performance, the Fund’s Institutional Class achieved a positive return of +9.13%, trailing behind the Russell 3000, which posted a higher return of +12.39%. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.

In its Q3 2023 investor letter, Weitz Multi Cap Equity Fund mentioned LKQ Corporation (NASDAQ:LKQ) and explained its insights for the company. LKQ Corporation (NASDAQ:LKQ) is a Chicago, Illinois-based salvage, recycled OEM, and OE aftermarket auto parts provider with a $11.8 billion market capitalization. LKQ Corporation (NASDAQ:LKQ) delivered a -17.32% return since the beginning of the year, while its 12-month returns are down by -18.40%. The stock closed at $44.16 per share on November 8, 2023.

Here is what Weitz Multi Cap Equity Fund has to say about LKQ Corporation (NASDAQ:LKQ) in its Q3 2023 investor letter:

“Finally, investors appear to be taking a “wait and see” approach to LKQ Corporation (NASDAQ:LKQ) acquisition of Canadian operation, Uni-Select, particularly as LKQ will pause its stock buyback program to reduce debt taken on to finance the deal. We remain constructive on the combined company’s prospects and ability to resume repurchases over the long term.”

A technician working on an automotive electronic, showcasing the company’s dedication to innovation.

Our calculations show that LKQ Corporation (NASDAQ:LKQ) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. LKQ Corporation (NASDAQ:LKQ) was in 32 hedge fund portfolios at the end of the second quarter of 2023, compared to 26 funds in the previous quarter. LKQ Corporation (NASDAQ:LKQ) delivered a -17.70% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.

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