Qualivian Investment Partners has decided to sell its stake in Copart Inc. (NASDAQ: CPRT) as part of a strategic shift towards Brookfield Corp. (BN). This move comes in the wake of the firm’s Q3 2025 investor letter, which highlighted the fund’s impressive performance, outperforming the iShares MSCI USA Quality Factor ETF by a significant margin.
In its investor letter, Qualivian reported a gross return of 69.2% and a net return of 61.3% since inception, surpassing the S&P 500 by 32.7% and 26.1% respectively. The letter noted that Copart, an online auction and vehicle remarketing services firm, experienced a modest one-month return of 0.77%, yet struggled over the past year, with shares dropping by 33.41%. As of December 22, 2025, Copart’s stock closed at $39.36, giving the company a market capitalization of $38.1 billion.
In discussing the decision to divest from Copart, Qualivian stated, “We sold our position in Copart, Inc. and initiated a new position in Brookfield Corp.” The firm pointed out that while Copart remains a leading player in the online auto auction sector, it faces intensified competition from IAA, which was acquired by RB Global (RBA). This acquisition has allowed IAA to adopt aggressive pricing strategies, contributing to Copart’s recent challenges.
Qualivian highlighted that the spike in auto insurance costs over the past few years has led to an increase in uninsured and under-insured motorists. This has negatively impacted Copart’s core revenue stream, which is primarily derived from insurance transactions, accounting for 80% of its revenue. Consequently, the firm’s revenue and earnings growth has slowed to just below 10% over the last year.
Despite recognizing Copart’s potential, Qualivian expressed a stronger conviction in investing in artificial intelligence stocks, citing their potential for higher returns in a shorter timeframe. The fund noted that Copart does not appear on its list of the 30 Most Popular Stocks Among Hedge Funds, with only 59 hedge fund portfolios holding shares of the company by the end of the third quarter, a slight decline from 61 in the previous quarter.
The strategic pivot to Brookfield Corp. indicates a broader trend among investment firms to focus on sectors with greater growth potential, particularly in technology and artificial intelligence. As the landscape of investment continues to evolve, Qualivian’s decision reflects a calculated approach to navigating market challenges.
Investors interested in the latest trends in hedge fund strategies and stock performance can explore more insights on Copart Inc. and other investment opportunities through various financial platforms.
