Advance Auto Parts Drops 8.99% Monthly After 37.59% 52-Week Rally
iMGP's Q4 2025 letter flagged Advance Auto Parts as its largest detractor after shares dropped 8.99% over one month despite a 37.59% 52-week gain. The fund highlighted new leadership’s ROIC-enhancing actions, but said earnings inflection has been pushed out by inflation dynamics and consumer behavior.
1. Fund Performance and Q4 Position
In its Q4 2025 letter, iMGP Small Company Fund reported a 1.33% return versus the Russell 2000’s 3.26%, naming Advance Auto Parts as the largest detractor in its Consumer Discretionary holdings.
2. Recent Stock Metrics
Advance Auto Parts shares fell 8.99% over the past month while gaining 37.59% over the last 52 weeks, closing at $50.33 on March 6, 2026, for a $3.025 billion market capitalization.
3. Turnaround Under New Leadership
Management has launched several ROIC-enhancing initiatives to drive a significant turnaround, but the anticipated earnings inflection has been delayed by prevailing inflation dynamics and shifts in consumer behavior.
4. Hedge Fund Interest Trend
Advance Auto Parts was held by 33 hedge funds at the end of Q4 2025, up from 32 the prior quarter, though it did not rank among the 40 most popular hedge fund stocks heading into 2026.