Makaira Partners Sells All 272,000 CarMax Shares Worth $18.3 Million

On Nov. 17, 2025, Makaira Partners LLC disclosed in an SEC filing that it sold out its entire position in CarMax (NYSE:KMX), an estimated $18.3 million change.

What happened

According to a filing submitted to the U.S. Securities and Exchange Commission (SEC) on Nov. 17, 2025, Makaira Partners LLC reported selling its entire CarMax stake in the third quarter. The fund’s CarMax holding, which comprised 272,203 shares as of the prior quarter, no longer appears in its portfolio as of Sept. 30. The estimated value of the shares sold is approximately $18.29 million based on average quarterly pricing.

What else to know

Makaira Partners fully divested CarMax. Top holdings after the filing:

• Charter Communications: approximately $45.1 million (approximately 23% of AUM)
• Bath & Body Works: approximately $35.3 million (approximately 18% of AUM)
• Lamar Advertising: approximately $20.8 million (approximately 10.7% of AUM)
• Flutter Entertainment: approximately $20.7 million (approximately 10.6% of AUM)
• Domino's Pizza: approximately $15.97 million (approximately 8.2% of AUM)

As of Nov. 14, 2025, CarMax shares were priced at $34.43, down approximately 56% over one year, underperforming the S&P 500 by approximately 68.3 percentage points.

Makaira's move came amid a fund downsizing, with reportable AUM dropping 41% quarter over quarter

Company Overview

Company Snapshot

• CarMax offers a broad selection of used vehicles, including domestic, imported, luxury, hybrid, and electric cars, as well as extended protection plans and vehicle repair services.
• The company operates a retail-driven business model with revenue generated from used vehicle sales, wholesale auctions, financing through CarMax Auto Finance, and value-added services.
• It targets retail consumers across the United States, serving a diverse customer base through over 230 used car stores and digital channels.

CarMax is a leading U.S. retailer of used vehicles, leveraging a nationwide footprint and integrated auto finance operations to drive sales and customer engagement. The company combines physical locations with digital retail capabilities to provide a streamlined car buying experience. Its scale, inventory breadth, and in-house financing differentiate CarMax in the competitive used auto market.

Foolish take

Makaira Partners significantly reduced its reportable assets under management (AUM) in Q3. That 40% overall reduction led to stock sales that either decreased ownership stakes or completely closed positions. CarMax fell into the latter category.

Makaira is a California-based boutique investment firm founded by Tom Bancroft in 2007. Bancroft previously ran the the $3.5 billion equity portfolio of GEICO, the Berkshire Hathaway-owned insurance company.

Bancroft runs a concentrated portfolio with Makaira, similar to his mentor Warren Buffett's approach at Berkshire. CarMax clearly wasn't one of the positions in which it had the most conviction. The auto retailer has been struggling, most recently reporting what its CEO called "a challenging quarter."

That helps explain why Makaira decided to exit its position.

Glossary

13F reportable assets under management (AUM): The portion of a fund’s assets required to be disclosed in SEC Form 13F filings.
Stake: The ownership interest or investment a fund or individual holds in a particular company.
Divest: To sell off an asset or investment, fully or partially, often to exit a position.
Quarter over quarter: A comparison of financial or operational results between one fiscal quarter and the previous quarter.
Downsizing (fund context): Reducing the total assets or size of an investment fund, often by selling holdings.
Wholesale auctions: Sales events where vehicles are sold in bulk, typically to dealers rather than retail consumers.
Value-added services: Additional services offered beyond core products to enhance customer experience or generate extra revenue.
In-house financing: Financing options provided directly by a company to its customers, rather than through third-party lenders.
TTM: The 12-month period ending with the most recent quarterly report.

Howard Smith has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway, CarMax, and Domino's Pizza. The Motley Fool recommends Flutter Entertainment Plc. The Motley Fool has a disclosure policy.