Reasons for the Rebound in CarMax (KMX) Stock

Weitz Investment Management, an investment management firm, released its “Partners III Opportunity Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund’s Institutional Class returned +8.03% compared to an +8.39% return for the Russell 3000 Index. The Fund’s Institutional Class has returned +11.33% year-to-date compared to +16.17% return for the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Weitz Partners III Opportunity Fund highlighted stocks like CarMax, Inc. (NYSE:KMX) in the second quarter 2023 investor letter. Headquartered in Richmond, Virginia, CarMax, Inc. (NYSE:KMX) is a used vehicle retailer. On August 7, 2023, CarMax, Inc. (NYSE:KMX) stock closed at $84.75 per share. One-month return of CarMax, Inc. (NYSE:KMX) was 0.51%, and its shares lost 12.60% of their value over the last 52 weeks. CarMax, Inc. (NYSE:KMX) has a market capitalization of $13.408 billion.

Weitz Partners III Opportunity Fund made the following comment about CarMax, Inc. (NYSE:KMX) in its second quarter 2023 investor letter:

“CarMax, Inc. (NYSE:KMX) shares entered 2023 trading at a steep discount, reflecting investors’ very low expectations and anticipation of another difficult year for the used car market. Although the market is far from healed, sales results have been better than feared, and management’s heightened cost discipline has helped shares rebound.”

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CarMax, Inc. (NYSE:KMX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held CarMax, Inc. (NYSE:KMX) at the end of the fourth quarter which was 38 in the previous quarter.

We discussed CarMax, Inc. (NYSE:KMX) in another article and shared The London Company Large Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.