CARG: Hedge Funds' Favorite Used Car Stock?

CarGurus Inc. (CARG) has been making waves in the used car market, and hedge funds have taken notice. According to recent 13F filings, hedge funds have increased their holdings in CARG by 1.2 million shares last quarter, indicating a strong bullish sentiment. But is CARG the best used car stock to buy according to hedge funds? Let's delve into the data and find out.


CARG's performance has been impressive, with its stock price appreciating by over 150% in the past year. Hedge funds have been actively buying and selling CARG shares, with prominent managers like Paul Reeder, Travis Knapp Anderson, and Lee Ainslie increasing their holdings significantly. For instance, Paul Reeder's Par Capital Management Inc. added 51.29% to its CARG holdings, now making up 1.85% of its portfolio.


CARG's strong performance can be attributed to several factors. The company's innovative pricing and search algorithms have helped it gain a competitive edge in the used car market. Additionally, CARG's focus on customer experience and dealer partnerships has driven growth and increased market share. Hedge funds seem to be betting on CARG's ability to continue disrupting the used car industry and capturing market share from traditional players.


When comparing CARG's performance to other used car stocks, it becomes clear that hedge funds have a strong preference for CARG. While competitors like AutoNation and CarMax have also seen growth, CARG's stock price appreciation and hedge fund activity outpace them. This suggests that hedge funds believe CARG has significant long-term potential.


In conclusion, CarGurus Inc. (CARG) has emerged as a favorite among hedge funds, with a strong track record of growth and a promising outlook. The company's innovative approach to the used car market, coupled with its attractive fundamentals, has drawn the attention of prominent hedge fund managers. As CARG continues to disrupt the industry and capture market share, it appears to be an attractive investment opportunity for those looking to capitalize on the used car market's growth.