Curreen Capital Partners, LP on Advance Auto Parts
Thesis
Advance Auto Parts is a major fund position undergoing a turnaround. Curreen notes that the business historically generated returns on tangible capital approaching 20%. Management has repaired the balance sheet and is working to improve operations. The fund believes the current valuation offers an attractive relationship between potential upside and downside.
“Advance Auto currently trades at an attractive upside-to-downside ratio.”
Key risks
- The operating turnaround may fail to deliver the expected improvement.