Funding administration firm Vulcan Worth Companions not too long ago launched its third-quarter 2025 investor letter. A duplicate of the letter may be downloaded right here. The third quarter was a superb one for the portfolios. Absolutely the efficiency was optimistic throughout all of the methods, whereas the relative efficiency lagged. Within the quarter, the Massive Cap Composite returned 4.6% web of charges and bills, the Small Cap Composite returned 4.1% web, the Focus Composite returned 3.7% web, the Focus Plus composite returned 3.7% and the All-Cap Composite returned 5.5% web. For extra data on the fund’s greatest picks in 2025, please test its prime 5 holdings.
In its third-quarter 2025 investor letter, Vulcan Worth Companions highlighted shares resembling CarMax, Inc. (NYSE:KMX). CarMax, Inc. (NYSE:KMX) is a used car retailer headquartered in Richmond, Virginia. The one-month return of CarMax, Inc. (NYSE:KMX) was -25.97%, and its shares misplaced 40.87% of their worth over the past 52 weeks. On October 15, 2025, CarMax, Inc. (NYSE:KMX) inventory closed at $44.42 per share, with a market capitalization of $6.523 billion.
Vulcan Worth Companions said the next concerning CarMax, Inc. (NYSE:KMX) in its third quarter 2025 investor letter:
“There was one materials detractor to efficiency: CarMax, Inc. (NYSE:KMX). CarMax is the biggest used automotive retailer within the U.S. The corporate additionally has the third largest wholesale enterprise within the U.S. and a big captive finance enterprise. The used automotive business remains to be feeling the results of COVID and the ensuing inflation. This was evident in CarMax’s second quarter outcomes, throughout which the corporate’s retail volumes declined by 5%. The weak quantity efficiency within the quarter was because of the continued irregular volatility in used automotive costs in addition to demand that had been pulled ahead into the primary quarter as customers reacted in anticipation of the early April tariff bulletins. On a year-to-date foundation by the second quarter, CarMax’s volumes and income are each up yr over yr. Though the used automotive market and CarMax’s outcomes might stay bumpy within the short-term, we imagine CarMax is an excellent enterprise with favorable long-term prospects. We imagine that CarMax’s buyer expertise, model, scale, vertical integration, and omnichannel method are aggressive benefits that may allow them to proceed taking market share in a extremely fragmented market. Whereas the corporate is presently underneath incomes, we imagine it’s properly positioned to develop volumes, leverage fastened prices, and considerably improve earnings because the market normalizes. The corporate has a stable steadiness sheet, produces vital free money circulate, and is presently shopping for again shares. Our price stays steady. We adopted our self-discipline and added to the place.”
