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Here’s Why Weitz Investment Remains Optimistic in CarMax (KMX)

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Weitz Investment Management, an investment management firm, published its “Partners III Opportunity Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Partners III Opportunity Fund’s Institutional Class returned -5.09% in the first quarter of 2022 compared with -4.60% for the S&P 500 and -5.28% for the Russell 3000. For the fiscal year ended March 31, 2022, the Fund returned -0.53% compared to +15.65% for the S&P 500 and +11.92% for the Russell 3000. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Weitz Investment Management Partners III Opportunity Fund mentioned CarMax, Inc. (NYSE:KMX) and explained its insights for the company. Founded in 1993, CarMax, Inc. (NYSE:KMX) is a Richmond, Virginia-based used vehicle retailer with a $14.3 billion market capitalization. CarMax, Inc. (NYSE:KMX) delivered a -31.08% return since the beginning of the year, while its 12-month returns are down by -24.85%. The stock closed at $89.75 per share on June 22, 2022.

Here is what Weitz Investment Management Partners III Opportunity Fund has to say about CarMax, Inc. (NYSE:KMX) in its Q1 2022 investor letter:

"Shares of CarMax have declined as tight used car supply and the increasingly negative impact of inflation may dent the used car dealer’s volumes in the near term. Looking longer-term, however, we remain optimistic that CarMax’s investments in its omnichannel (in-store, online or hybrid) buying experience, combined with national scale, positions them for success in the future."

Photo by Nima Sarram on Unsplash

Our calculations show that CarMax, Inc. (NYSE:KMX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. CarMax, Inc. (NYSE:KMX) was in 27 hedge fund portfolios at the end of the first quarter of 2022, compared to 35 funds in the previous quarter. CarMax, Inc. (NYSE:KMX) delivered a -9.60% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on CarMax, Inc. (NYSE:KMX) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.