Here’s Why Giverny Capital Asset Management Sold Credit Acceptance Corporation (CACC) in Q3

Core Insights - Giverny Capital Asset Management reported a third-quarter 2025 portfolio return of 6.78%, underperforming the S&P 500's 8.12% return, with a year-to-date return of 12.57% compared to the index's 14.83% [1] Group 1: Company Performance - Credit Acceptance Corporation (NASDAQ:CACC) had a one-month return of 3.66% but experienced a 6.95% decline over the last 52 weeks, closing at $461.29 per share on December 08, 2025, with a market capitalization of $5.184 billion [2] - Giverny Capital Asset Management fully exited its position in Credit Acceptance Corporation on October 1, citing concerns over the company's technological and underwriting capabilities compared to other subprime lenders [3] Group 2: Investment Sentiment - Credit Acceptance Corporation is not among the 30 most popular stocks among hedge funds, with 29 hedge fund portfolios holding the stock at the end of the third quarter, down from 39 in the previous quarter [3] - The company acknowledges the potential of Credit Acceptance Corporation but suggests that certain AI stocks present greater upside potential and lower downside risk [3]