Should You Maintain Your Conviction in CarMax (KMX) Stock?

The London Company, an investment management company, released “The London Company Large Cap Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 8% gross, (7.9% net) compared to an 8.6% increase in the Russell 1000 Index. The portfolio’s relative performance was slowed down by sector exposure which was partially offset by favorable stock selection. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

The London Company Large Cap Strategy 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 3, 2023, CarMax, Inc. (NYSE:KMX) stock closed at $82.59 per share. One-month return of CarMax, Inc. (NYSE:KMX) was 1.47%, and its shares lost 16.72% of their value over the last 52 weeks. CarMax, Inc. (NYSE:KMX) has a market capitalization of $13.067 billion.

The London Company Large Cap Strategy made the following comment about CarMax, Inc. (NYSE:KMX) in its second quarter 2023 investor letter:

“CarMax, Inc. (NYSE:KMX) – Shares of KMX outperformed in Q2 as demand for used cars remained positive and management is improving the cost structure. While affordability and higher interest rate issues remain, KMX’s inventory management and ability to self-source vehicles has translated to better-than- expected results, and the company KMX has maintained high gross profit per unit in this environment. KMX continues to disrupt the used car ecosystem and we maintain our conviction in the stock.”

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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 billionaire Jeff Vinik’s stock picks and 10-year performance. . 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.