Investment management company Curreen Capital released its third quarter 2024 Investor letter. A copy of the letter can be downloaded here. Although the overall market has seen an increase, many of the “ugly duckling” stocks the firm is concentrating on have become cheaper. This creates excellent opportunities to buy quality businesses while they are temporarily out of favor in the stock market. In the third quarter, the fund was up 0.9% compared to 5.89% for the S&P 500 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Curreen Capital highlighted stocks like Credit Acceptance Corporation (NASDAQ:CACC), in the third quarter 2024 investor letter. Credit Acceptance Corporation (NASDAQ:CACC) is a financing company that offers financing programs, and related products and services. The one-month return of Credit Acceptance Corporation (NASDAQ:CACC) was -0.07%, and its shares gained 10.77% of their value over the last 52 weeks. On November 7, 2024, Credit Acceptance Corporation (NASDAQ:CACC) stock closed at $454.50 per share with a market capitalization of $5.505 billion.

Curreen Capital stated the following regarding Credit Acceptance Corporation (NASDAQ:CACC) in its Q3 2024 investor letter:

"Credit Acceptance Corporation (NASDAQ:CACC) is a subprime auto lender, enabling subprime borrowers to buy vehicles from used car dealerships. The business has profitably gained share in a large and difficult market for more than two decades. Management allocates free cash flow to growing the business and repurchasing shares at attractive prices. Credit Acceptance currently trades at an attractive upside-to-downside ratio."

A businessman signing a loan contract with a satisfied smile.

Credit Acceptance Corporation (NASDAQ:CACC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Credit Acceptance Corporation (NASDAQ:CACC) at the end of the second quarter which was 37 in the previous quarter. While we acknowledge the potential of Credit Acceptance Corporation (NASDAQ:CACC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 2024 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.