Alta Fox Capital Opens a Large $41 Million CarGurus Position
Key Points
Alta Fox Capital opened a new position buying 1,098,700 shares in CarGurus with the position valued at $41 million.
The CarGurus position represents 9.1% of Alta Fox's 13F reportable assets under management.
Post-trade stake: 1,098,700 shares, or $40.90 million.
CarGurus now ranks as the fund's 4th-largest holding.
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On Nov. 14, 2025, Alta Fox Capital Management, LLC disclosed a new position in CarGurus (NASDAQ:CARG), acquiring 1,098,700 shares valued at an estimated $40.90 million.
What happened
According to a filing with the U.S. Securities and Exchange Commission filed on Nov. 14, 2025, Alta Fox Capital initiated a new position in CarGurus, purchasing 1,098,700 shares as of Sept. 30, 2025.
The position was valued at $40.90 million as of the Sept. 30, 2025, reporting date, raising the fund’s total reportable U.S. equity holdings to 19 positions.
What else to know
The CarGurus stake represents a new position, accounting for 9.12% of the fund’s 13F assets under management as of Sept. 30, 2025.
Top five holdings after the filing:
- Daktronics (NASDAQ:DAKT): $92.69 million (20.7% of AUM)
- NCR Atleos (NYSE:NATL): $77.60 million (17.3% of AUM)
- REV Group (NYSE:REVG): $45.76 million (10.2% of AUM)
- CarGurus: $40.90 million (9.1% of AUM)
- DexCom Inc (NASDAQ:DXCM): $25.51 million (5.7% of AUM)
As of Dec. 8, 2025, shares of CarGurus were priced at $35.84, reflecting a 1-year return of -7% and trailing the S&P 500 by 20 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $926.42 million |
| Net Income (TTM) | $151.99 million |
| Price (as of market close 2025-12-9) | $35.84 |
| One-Year Price Change | (7%) |
Company snapshot
CarGurus:
- Offers an online automotive marketplace, digital wholesale platform, and dealer data products, including vehicle listings, financing solutions, and trade-in services.
- Serves car dealerships, automotive manufacturers, and individual consumers seeking to buy or sell vehicles online in the United States and internationally.
- Leverages data-driven insights and technology to facilitate efficient vehicle transactions and support a broad network of dealers.
CarGurus operates a leading digital platform that connects buyers and sellers in the automotive market, leveraging data-driven insights and technology to facilitate efficient vehicle transactions.
The company’s scale and diversified offerings across its marketplace and digital wholesale segments position it as a key player in the online auto retail market.
Its focus on actionable analytics and a broad network of dealers supports a competitive advantage in the evolving automotive e-commerce landscape.
Foolish take
Alta Fox's new purchase of CarGurus is undoubtedly an intriguing move for investors to watch for a number of reasons.
Alta Fox typically focuses on underfollowed, potentially undervalued small caps, and CarGurus fits this billing as a $3.6 billion company.
Furthermore, the firm's initial purchase of the stock is substantial, as the new position already accounts for 9% of Alta Fox's portfolio.
So this is a large bet.
From a Foolish perspective, CarGurus is an industry leader that is coming through some short-term challenges rather successfully.
After making a mostly unsuccessful bet on digital wholesale car sales between dealerships, CarGurus is getting back to what makes it great as the leading aggregator for vehicle listings and research.
Despite the mayhem recently in the used car market, CarGurus has delivered an average free cash flow (FCF) margin of 17% and returned to single-digit sales growth over the last year (despite the overhang of winding down its digital wholesale business).
Trading at just 15 times FCF and 16 times forward earnings, I like Alta Fox's investment, especially since it aligns well with their investment strategy.
Personally, I'd like to see a bit more consistent growth from CarGurus before I buy the stock. Still, there is a lot to like about the company with its discounted valuation, leadership position, and quickly declining share count.
Glossary
13F: A quarterly report filed by institutional investment managers disclosing their U.S. equity holdings.
Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
Position: The amount of a particular security or asset owned by an investor or fund.
Initiated Position: The first time a fund or investor buys shares in a particular company.
Reportable Assets: Investments that must be disclosed in regulatory filings, such as the 13F report.
Trailing the S&P 500: Underperforming the S&P 500 index over a specified period.
Digital Wholesale Platform: An online system enabling dealers to buy and sell vehicles directly to each other.
Dealer Data Products: Tools and services providing automotive dealers with analytics and information to improve sales and operations.
Actionable Analytics: Data insights designed to help users make informed business decisions.
TTM: The 12 months ending with the most recent quarterly report.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CarGurus. The Motley Fool recommends DexCom and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy.
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