Here’s Why Qualivian Investment Partners Decided to Sell Copart (CPRT)

Group 1: Fund Performance - Qualivian Investment Partners outperformed the iShares MSCI USA Quality Factor ETF (QUAL) by 69.2% and 61.3% on a gross and net basis since inception through September 30, 2025 [1] - The fund exceeded the S&P 500 by 32.7% and 26.1% respectively, on a gross and net basis [1] Group 2: Copart, Inc. Overview - Copart, Inc. (NASDAQ:CPRT) is an online auction and vehicle remarketing services company with a one-month return of 0.77% and a 52-week loss of 33.41% [2] - As of December 22, 2025, Copart's stock closed at $39.36 per share, with a market capitalization of $38.1 billion [2] Group 3: Investment Strategy - Qualivian Investment Partners sold its position in Copart, Inc. and initiated a new position in Brookfield Corp. [3] - The online auctions sector is characterized as a duopoly, with Copart being the larger and better-managed player compared to IAA, which has become more aggressive in pricing due to its acquisition by RB Global [3] - The increase in uninsured and under-insured motorists has led to a deceleration in Copart's revenue and earnings growth to just below 10% in the past 12 months [3] Group 4: Hedge Fund Interest - Copart, Inc. was held by 59 hedge fund portfolios at the end of the third quarter, a decrease from 61 in the previous quarter [4] - There is a belief that certain AI stocks offer greater upside potential and carry less downside risk compared to Copart, Inc. [4]