Slow Volume Growth Hurt Copart (CPRT) in Q4

Group 1: Market Overview - In the fourth quarter of 2025, the S&P 500 returned 2.65%, leading to a full-year return of 17.9% for 2025, with annual growth of over 21% over the last three years [1] - Market leadership was characterized by High Beta and Momentum factors, with narrow participation, although sectors like Healthcare, Financials, and Consumer Discretionary showed slight improvements [1] - Mega-cap technology companies remained the primary drivers of the S&P 500's overall return, indicating high stock concentration [1] Group 2: Madison Large Cap Fund Performance - The Madison Large Cap Fund (Class I) appreciated 3.43% in the fourth quarter, outperforming the S&P 500 Index's return of 2.65% [1] - The fund's investor letter highlighted its top five holdings, showcasing its best picks for 2025 [1] Group 3: Copart, Inc. (NASDAQ: CPRT) Analysis - Copart, Inc. is an online vehicle auction and remarketing services company with a market capitalization of $34.15 billion [2] - The stock closed at $35.28 per share on February 24, 2026, with a one-month return of -13.15% and a 52-week loss of 37.30% [2] - Copart was among the bottom five detractors for the quarter, with slowing volume growth attributed to more under-and-uninsured auto drivers and shifting market share among insurance carriers [3] - Despite recent challenges, Copart's earnings have grown healthily over the past few years, and its competitive position remains strong [3] Group 4: Hedge Fund Interest in Copart - At the end of the fourth quarter, 68 hedge fund portfolios held Copart, up from 59 in the previous quarter, indicating growing interest [4] - While acknowledging Copart's potential, the company believes certain AI stocks offer greater upside potential and less downside risk [4]