Robust Results and Share Repurchase Authorization Boosted ACV Auctions (ACVA)

Robust Results and Share Repurchase Authorization Boosted ACV Auctions (ACVA)

Fri, September 4, 2026 at 6:13 PM GMT+3 3 min read

• ACVA +6.19%

Meridian Funds, managed by ArrowMark Partners, released its second-quarter 2026 investor letter for "Meridian Hedged Equity Fund". The letter can be downloaded here. U.S. equities rebounded strongly in the second quarter, recovering from an earlier selloff due to geopolitical tensions, primarily with Iran. The easing of these tensions caused crude oil prices to drop significantly, yet inflation remained a concern, with consumer prices rising 4.2% year-over-year in May. The Federal Reserve held interest rates steady but hinted at future hikes, reflecting a hawkish shift under new Chair Kevin Warsh. While the Meridian Hedged Equity Fund gained 4.50% during this period, it lagged behind the S&P 500's 15.20% return. The Fund focuses on high-quality companies, balancing growth potential with risk management through covered call options. Moving forward, the firm anticipates volatility but views it as a potential opportunity and is committed to disciplined research and investing in businesses with solid fundamentals and long-term growth prospects. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, Meridian Hedged Equity Fund highlighted ACV Auctions Inc. (NYSE:ACVA). ACV Auctions Inc. (NYSE:ACVA) is a digital automotive marketplace that enables buyers and sellers to connect for the online auction of wholesale vehicles. On September 03, 2026, ACV Auctions Inc. (NYSE:ACVA) closed at $6.70 per share. Over the past month, ACV Auctions Inc. (NYSE:ACVA) declined 10.19%, but its shares are down 43.27% over the past year. ACV Auctions Inc. (NYSE:ACVA) has a market capitalization of $1.14 billion, and its stock has traded within a 52-week range of $4.07 to $11.91.

Meridian Hedged Equity Fund stated the following regarding ACV Auctions Inc. (NYSE:ACVA) in its Q2 2026 investor letter:

"ACV Auctions Inc. (NYSE:ACVA) operates a digitally native, data-driven marketplace that connects wholesale buyers and sellers of used vehicles across the U.S. dealer-to-dealer automotive vertical. The company leverages technology-enabled service offerings and comprehensive vehicle inspections to provide transparency and efficiency for automotive transactions. The stock's performance was bolstered by record Q1 financial results and the announcement of a $100 million share repurchase authorization, which included an immediate $50 million accelerated repurchase program. Additionally, investor confidence was supported by ACV's ability to exceed its Adjusted EBITDA guidance and gain market share despite a challenging broader industry environment characterized by declining dealer wholesale volumes. Performance was further driven by the successful launch and traction of AI-powered dealer solutions like VIPER, which enhanced appraisal accuracy and marketplace efficiency."

ACV Auctions Inc. (NYSE:ACVA) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 44 hedge fund portfolios held ACV Auctions Inc. (NYSE:ACVA) at the end of the second quarter, down from 49 in the previous quarter. While we acknowledge the potential of ACV Auctions Inc. (NYSE:ACVA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we discussed ACV Auctions Inc. (NYSE:ACVA) and highlighted its strong track record of dividend growth. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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