Inflection Point’s ACVA Divestment: A $6.5M Farewell to Auctioned Automobiles

by

On the particularly unremarkable Wednesday of November 21, 2025, Inflection Point Investments LLP executed a transaction of considerable theatricality, divesting itself entirely of 403,796 shares in ACV Auctions (ACVA +1.66%)-a position once cherished like a vintage Bordeaux, now sold off with the brisk efficiency of a London auctioneer clearing out a duke’s library. The proceeds, a tidy $6.55 million, might have purchased a rather splendid country estate in Surrey, though presumably the funds shall be redeployed in pursuits more befitting modern financiers.

A Social Conundrum for the Portfolio Gentry

According to a filing with Her Majesty’s (or rather, Uncle Sam’s) Securities and Exchange Commission, the fund’s third-quarter activities resembled a particularly decisive garden party guest list purge. Where once ACVA occupied a place of honor as the third-largest holding among ten equities, it now lingers only as a ghost at the feast-a memory draped in the faint melancholy of unmet earnings expectations. The shares, sold at a price of $6.64 apiece, had spent the preceding year tumbling like a clumsy acrobat from a tightrope, shedding 68.93% of their value with all the grace of a wet weekend in Brighton.

The New Pecking Order

One might imagine the fund’s remaining investments as debutantes freshly positioned for the ballroom season: XMTR ($7.34 million, 15.6% of AUM) leads the quadrille, followed by ITRN ($7.00 million, 14.9%) with the stately bearing of a retired colonel. CARG ($5.41 million, 11.5%) and KRNT ($5.18 million, 11.0%) waltz along companionably, while COUR ($4.81 million, 10.2%) brings up the rear with the quiet dignity of a well-bred spaniel. The departed ACVA, once accounting for 12.40% of the fund’s assets, now lingers only in the gossip columns of Bloomberg.

ACV Auctions: Digital Bazaars and Red Ink

Metric Value
Revenue (TTM) $735.48 million
Net income (TTM) ($72.72 million)
Price (as of market close November 20, 2025) $6.64
1-year price change (68.93%)

Our beleaguered protagonist, ACV Auctions, continues its quest to revolutionize the automotive remarketing industry with the zeal of a young man determined to teach his aunt’s poodle to play chess. Its digital auction platform-imagine Sotheby’s meets Motown, but for used sedans-serves dealerships and fleet operators across the United States. While third-quarter revenue galloped ahead 16% year-over-year (thanks to an expanded no-reserve sale schedule that would exhaust even the most enthusiastic bidder), the company remains locked in a passionate embrace with red ink, forecasting GAAP losses of $21-$23 million for the year.

Market Manners and Financial Etiquette

Analysts might liken ACVA’s situation to hosting a grand ball in a house with a leaky roof: impressive guest turnout (16% revenue growth), but the champagne flows while the cellar floods. Management insists the fourth-quarter wholesale market will contract “by a mid-single-digit percentage”-a forecast as cheery as a damp firework. Meanwhile, the stock underperformed the S&P 500 by 79.57 percentage points, a gap wide enough to drive a vintage Rolls-Royce through, bonnet first.

Lexicon of Financial Delights

  • Assets under management (AUM): The total market value of investments entrusted to a fund, akin to the collective worth of a country squire’s land holdings.
  • Complete liquidation: Selling off an entire position-financial jargon for “converting one’s vintage wine collection into cash to pay the gardener.”
  • Digital auction marketplace: An online platform where vehicles change hands with the speed of a Wimbledon volley, minus the strawberries.

In closing, one might say Inflection Point’s divestment resembles a well-mannered exit from a particularly rowdy poker game-leaving the table with pockets full of chips and a murmured “jolly good show” for the house band. As for ACV Auctions, it soldiers on like a plucky understudy in a West End production, still awaiting its cue to turn a profit. [chuckles softly into ledger] 😂

Read More

2025-11-23 18:28