Advance Auto Parts: A Fund’s Exit Strategy

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On January 26th, Pursue Wealth Partners LLC executed a rather decisive maneuver: they sold all of their shares in Advance Auto Parts (AAP +1.65%). This, as anyone familiar with the vast, swirling chaos of the stock market knows, is what happens when one attempts to apply logic to a fundamentally illogical system. It’s a bit like trying to herd cats… using a kazoo. (The cats, naturally, remain unimpressed.) They offloaded 65,664 shares, a quantity that, when considered in the grand scheme of the universe, is both utterly meaningless and yet, somehow, profoundly significant.

  • Sold 65,664 shares of Advance Auto Parts. (A surprisingly specific number, when you think about it.)
  • The position was valued at approximately $4 million at the end of the previous quarter. (Which, if stacked end-to-end, wouldn’t quite reach the moon, but would buy a very nice collection of rubber ducks.)
  • They no longer hold any shares in the company. (A definitive statement. Almost unsettlingly so.)
  • The position accounted for 2.2% of the fund’s Assets Under Management (AUM) at the end of the third quarter. (AUM, a term that sounds suspiciously like a distressed cry from a particularly large sea creature.)

What Happened

According to a recent filing with the Securities and Exchange Commission (SEC), a body dedicated to ensuring that everyone understands absolutely nothing, Pursue Wealth Partners LLC divested its entire stake in Advance Auto Parts. The filing, a document composed entirely of fine print and legalese, confirmed that the fund now holds zero shares. Zero. A truly astonishing number. (It’s one less than one, if you’re keeping track.)

What Else to Know

  • The fund exited its position in Advance Auto Parts. (A rather blunt way of putting it, but accurate.)
  • Top holdings after the filing:
    • NASDAQ: MSFT: $15 million (7.3% of AUM) – Microsoft. Still making operating systems. Remarkably.
    • NASDAQ: NVDA: $14.2 million (6.9% of AUM) – NVIDIA. Making graphics cards. Also remarkably.
    • NASDAQ: AMZN: $11.9 million (5.8% of AUM) – Amazon. Delivering everything. Inevitably.
    • NASDAQ: MOAT: $9.2 million (4.4% of AUM) – Morningstar. Apparently, they’re building a moat. Around what, remains unclear.
    • NYSEMKT:AAPL: $8.6 million (4.2% of AUM) – Apple. Still making things people queue up for. The universe continues to operate according to its own peculiar rules.

Company Overview

Metric Value
Revenue (TTM) $8.6 billion
Net income (TTM) ($571.5 million)
Dividend yield 2.1%
Price (as of market close 1/23/26) $46.77

Company Snapshot

Advance Auto Parts operates a network of retail outlets dedicated to the sale of automotive components and accessories. They cater to both the professional mechanic and the enthusiastic amateur, offering a bewildering array of parts and fluids. (It’s a bit like a hardware store, but for vehicles. And slightly more greasy.)

  • They sell replacement parts, accessories, batteries, and maintenance items for a wide range of vehicles. (Everything from compact cars to oversized pickup trucks. And everything in between.)
  • They generate revenue through retail and commercial sales, both in-store and online. (They also offer services such as battery installation and engine diagnostics. Because apparently, some people can’t change a lightbulb without professional assistance.)
  • They serve customers across the United States, Puerto Rico, Canada, and select international markets. (A truly global enterprise. Which means they’re likely contributing to the inevitable heat death of the universe at a slightly faster rate.)

What This Transaction Means for Investors

Advance Auto Parts constituted a notable portion of Pursue Wealth’s reported assets. Valued at $4 million as of September 30th, it represented 2.2% of their $182 million AUM. (A percentage that, while seemingly insignificant, could be the difference between a comfortable retirement and a life spent collecting bottle caps.)

The fund’s decision to exit may stem from the stock’s lackluster performance. Advance Auto Parts shares declined 1.8% over the past year through January 23rd, while the S&P 500 index surged 15.4%. (A stark reminder that the stock market is not a rational entity, but rather a chaotic system governed by fear, greed, and the occasional rogue tweet.)

Interestingly, Advance Auto Parts did report positive same-store sales (comps) in the latest quarter. Third-quarter comps increased 3% in the period ended October 4th. (A small victory, perhaps, but a victory nonetheless. Like successfully navigating a particularly complex bureaucratic process.)

However, it may be premature to declare a turnaround. While management is attempting to implement a restructuring plan, including closing underperforming locations and opening new ones, the company faces fierce competition from other auto parts retailers. (The automotive aftermarket is a brutal landscape, populated by sharks, vultures, and suspiciously cheerful salespeople.)

Investors may wish to observe sustained comps growth before committing capital to Advance Auto Parts. (Or, you could just invest in rubber ducks. They’re surprisingly resilient.)

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2026-01-27 00:52