TFJ Management, based in Massachusetts, has recently increased its investment in CCC Intelligent Solutions Holdings Inc. by acquiring over 590,000 additional shares. This move elevates the total value of their stake to approximately $12.46 million, as disclosed in a filing dated November 13.
The Situation Unfolds
A glance at the U.S. Securities and Exchange Commission filing reveals that TFJ Management now owns nearly 1.4 million shares of CCC Intelligent Solutions Holdings Inc.. This acquisition accounts for 8.39% of their reportable equity assets, suggesting a significant commitment to this particular investment.
Additional Insights
Following this filing, the fund’s primary holdings are as follows:
- NASDAQ: APP: $39.15 million (26.4% of AUM)
- NYSE: CPNG: $25.14 million (16.9% of AUM)
- NYSE: KAR: $17.80 million (12.0% of AUM)
- NASDAQ: CCC: $12.46 million (8.4% of AUM)
- NYSE: HGV: $11.13 million (7.5% of AUM)
As of the last trading day, shares of CCC were priced at $7.90, marking a 33% decline over the preceding year-an underperformance when compared to the S&P 500, which has risen by 16.5% during the same timeframe.
Company Overview
| Metric | Value |
|---|---|
| Price (as of last Friday) | $7.90 |
| Market Capitalization | $5.15 billion |
| Revenue (TTM) | $1.03 billion |
| Net Income (TTM) | ($2.86 million) |
Company Snapshot
- CCC Intelligent Solutions provides a cloud-based SaaS platform tailored for digital workflow, estimating, claims, and repair management within the property and casualty insurance sector.
- The company’s clientele includes insurance carriers, automotive repair facilities, original equipment manufacturers (OEMs), parts suppliers, and other participants in this intricate ecosystem across the United States and China.
- By harnessing artificial intelligence and cloud technology, CCC aims to enhance operational efficiencies and facilitate transactions among its diverse industry partners.
In essence, CCC Intelligent Solutions Holdings Inc. functions as a pivotal SaaS provider within the property and casualty insurance landscape. The company employs advanced technology to refine workflows and enable commerce across a multifaceted network of insurers, repairers, and automotive collaborators. Their solutions are crucial for stakeholders navigating the complexities of the insurance and automotive value chains.
Investor Perspective
For those with a long-term investing horizon, it is essential to focus not on the fluctuations of the stock price but on the magnitude and endurance of this position within the fund. This is no mere dalliance; with over 8% of reported assets now allocated to CCC, it stands alongside other high-conviction investments. This context is critical-volatility has not deterred the manager; rather, it seems integral to their strategic outlook.
The dissonance between market sentiment and underlying performance is stark. In the third quarter, CCC Intelligent Solutions reported revenues of $267.1 million, a 12% increase year-over-year, while adjusted EBITDA climbed to $110.1 million, reflecting an impressive margin of 41%. Free cash flow surged to $78.6 million during this period, prompting management to revise full-year expectations upwards, anticipating revenues of up to $1.056 billion and adjusted EBITDA of $428 million. Additionally, the company repurchased $44.9 million of its own stock in the quarter, having already utilized more than $217 million of its $300 million authorization thus far this year.
For patient investors, CCC represents a paradox: a stock whose market valuation remains contentious, yet whose fundamental business continues to strengthen. Investors prepared to endure the inevitable oscillations are effectively wagering that the elements of recurring revenue, loyal customers, and robust cash generation will ultimately prevail over transient market moods.
Glossary
13F assets under management: The total value of securities a fund manager reports quarterly to the SEC on Form 13F.
Stake: The ownership interest or investment a fund or individual holds in a company.
Position: The amount of a particular security or asset held by an investor or fund.
Market value: The current total worth of an investment based on its latest trading price.
Reportable holdings: Securities that institutional investors must disclose in regulatory filings due to size or type.
Alpha: A measure of an investment’s performance compared to a benchmark, indicating value added or lost.
SaaS (Software as a Service): A software delivery model where applications are accessed online rather than installed locally.
Property and casualty insurance: Insurance covering property loss and liability for accidents, injuries, or damage to others.
OEM (Original Equipment Manufacturer): A company that produces parts or equipment used in another company’s end products.
Mission-critical: Essential systems or processes whose failure would severely impact business operations.
Value chain: The full range of activities involved in creating and delivering a product or service.
TTM: The 12-month period ending with the most recent quarterly report.
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2025-12-21 03:19