Meridian Hedged Equity Fund on ACV Auctions Inc.
Thesis
ACV operates a technology-enabled dealer-to-dealer marketplace for used vehicles, using data and inspection services to improve transparency and transaction efficiency. The company delivered record first-quarter results, exceeded adjusted EBITDA guidance and gained market share despite declining dealer wholesale volumes across the industry. Meridian also highlighted a $100 million repurchase authorization and increasing adoption of AI-powered products such as VIPER as drivers of operating and capital-allocation upside.
“The stock’s performance was bolstered by record Q1 financial results and the announcement of a $100 million share repurchase authorization.”
Key risks
- The broader industry environment has been characterized by declining dealer wholesale volumes.