Madison Mid Cap Fund Sold its Investment in CarMax (KMX)

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund (Class Y) decreased 1.86% compared to the 0.62% increase for the Russell Midcap Index. The Fund returned 10.46% in the full year 2024 period, compared to 15.34% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Madison Mid Cap Fund highlighted stocks like CarMax, Inc. (NYSE:KMX) in the fourth quarter 2024 investor letter. CarMax, Inc. (NYSE:KMX) is a used vehicle retailer headquartered in Richmond, Virginia. The one-month return of CarMax, Inc. (NYSE:KMX) was 7.92%, and its shares gained 20.33% of their value over the last 52 weeks. On January 29, 2024, CarMax, Inc. (NYSE:KMX) stock closed at $85.70 per share with a market capitalization of $13.509 billion.

Madison Mid Cap Fund stated the following regarding CarMax, Inc. (NYSE:KMX) in its Q4 2024 investor letter:

“We sold one holding during the quarter, CarMax, Inc. (NYSE:KMX). The business has a strong track record of winning market share in the used car market through a differentiated business model and great execution. While the opportunity to gain market share still exists, we believe it will be harder to continue to do so moving forward due to various changing industry dynamics. Thus, we reallocated funds to better ideas.”

CarMax, Inc. (KMX): Transforming Used Car Retail with Community Impact and AI Integration

A happy customer inspecting a newly purchased used car with the help of a sales assistant.

CarMax, Inc. (NYSE:KMX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held CarMax, Inc. (NYSE:KMX) at the end of the third quarter which was 35 in the previous quarter. While we acknowledge the potential of CarMax, Inc. (NYSE:KMX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed CarMax, Inc. (NYSE:KMX) and shared the list of non-tech AI opportunities amid DeepSeek selloff. In the previous quarter, Madison Mid Cap Fund trimmed its investment in CarMax, Inc. (NYSE:KMX). In addition, please check out our hedge fund investor letters Q3 2024 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.