Polen Capital Exited Copart (CPRT) as Valuation Became Less Attractive

Polen Capital, an investment management company, released its “Polen U.S. SMID Company Growth Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio returned -5.00% gross and -5.26% net of fees in the third quarter compared to a -6.84% return for the Russell 2500 Growth Index. The portfolio returned 11.68% (net) YTD, compared to 5.63% for the index. The negative absolute return of the portfolio in the quarter is due to ongoing macroeconomic uncertainty related to interest rates, credit tightening, and an uneven economy from a growth perspective. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Polen U.S. SMID Company Growth Strategy highlighted stocks like Copart, Inc. (NASDAQ:CPRT) in the third quarter 2023 investor letter. Headquartered in Dallas, Texas, Copart, Inc. (NASDAQ:CPRT) is an online auction and vehicle remarketing services providing company. On October 30, 2023, Copart, Inc. (NASDAQ:CPRT) stock closed at $43.12 per share. One-month return of Copart, Inc. (NASDAQ:CPRT) was 1.17%, and its shares gained 49.85% of their value over the last 52 weeks. Copart, Inc. (NASDAQ:CPRT) has a market capitalization of $41.403 billion.

Polen U.S. SMID Company Growth Strategy made the following comment about Copart, Inc. (NASDAQ:CPRT) in its Q3 2023 investor letter:

“We exited three positions during the quarter, including Copart, Inc. (NASDAQ:CPRT), Farfetch, and Olo.

With Copart, we eliminated our position as the relative valuation has become less attractive on the back of strong YTD performance in 2023. With a decline in the expected IRR relative to our current opportunity set, we felt it prudent to move on in favor of superior alternatives.”

Copart, Inc. (NASDAQ:CPRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Copart, Inc. (NASDAQ:CPRT) at the end of second quarter which was 48 in the previous quarter.

We discussed Copart, Inc. (NASDAQ:CPRT) in another article and shared Ave Maria Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 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.