Should You Invest in Credit Acceptance (CACC)?

Investment management company Curreen Capital released its third quarter 2023 Investor letter. A copy of the same can be downloaded here. In the third quarter, the fund was down 0.95% compared to -3.27% for the S&P 500 Index. It had 40% of the fund in cash at the end of the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Curreen Capital highlighted stocks like Credit Acceptance Corporation (NASDAQ:CACC) in its Q3 2023 investor letter. Headquartered in Southfield, Michigan, Credit Acceptance Corporation (NASDAQ:CACC) is a financing company that advances money to automobile dealers. On December 19, 2023, Credit Acceptance Corporation (NASDAQ:CACC) stock closed at $516.02 per share. One-month return of Credit Acceptance Corporation (NASDAQ:CACC) was 19.47%, and its shares gained 11.40% of their value over the last 52 weeks. Credit Acceptance Corporation (NASDAQ:CACC) has a market capitalization of $6.485 billion.

Curreen Capital made the following comment about Credit Acceptance Corporation (NASDAQ:CACC) in its Q3 2023 investor letter:

“Credit Acceptance Corporation (NASDAQ:CACC) is a subprime auto lender, enabling subprime borrowers to buy vehicles from used car dealerships. The business has profitably gained share in a large and difficult market for more than two decades. Management allocates free cash flow to growing the business and repurchasing shares at attractive prices. Credit Acceptance currently trades at an attractive upside-to-downside ratio.”

A businessman signing a loan contract with a satisfied smile.

Credit Acceptance Corporation (NASDAQ:CACC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Credit Acceptance Corporation (NASDAQ:CACC) at the end of third quarter which was 24 in the previous quarter.

We discussed Credit Acceptance Corporation (NASDAQ:CACC) in another article and shared the list of best stocks CAS Investment Partners is buying. 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.