ACV Auctions (ACVA) Jumps on Top-Line Growth and Large Buyback Authorization

Cambiar SMID Fund, managed by Cambiar Investors, published its Q2 2026 investor letter. The letter can be downloaded here. U.S. equity markets rebounded strongly in the second quarter, with the S&P 500 gaining 15.2% and the Russell 2000 rising 21.5%. Growth outperformed value during the quarter, although value remained ahead year-to-date. Small- and mid-cap stocks also rallied, as the Russell 2500 Value Index returned 18.5%. Despite the Cambiar SMID Fund's 14.39% return (both the investor and the institutional class) —its best since Q4 2022—it lagged behind the index. Technology and Industrials were notable contributors during the quarter. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.

In its second-quarter 2026 investor letter, Cambiar SMID Fund highlighted ACV Auctions Inc. (NYSE:ACVA). ACV Auctions Inc. (NYSE:ACVA) is a digital automotive marketplace that enables buyers and sellers to connect for the online auction of wholesale vehicles. On September 16, 2026, ACV Auctions Inc. (NYSE:ACVA) closed at $10.42 per share. Over the past month, ACV Auctions Inc. (NYSE:ACVA) returned 35.85%, but its shares are up 0.77% over the past year. ACV Auctions Inc. (NYSE:ACVA) has a market capitalization of $1.77 billion, and its stock has traded within a 52-week range of $4.07 to $10.55.

Cambiar SMID Fund stated the following regarding ACV Auctions Inc. (NYSE:ACVA) in its Q2 2026 investor letter:

"The Fund's holdings in the Industrials sector performed well in the quarter, outpacing the index by a wide margin for the period. We were particularly encouraged by the sharp rebounds in WillScot Holdings and ACV Auctions – as these two positions have struggled over the past year but may be turning the corner. ACV (wholesale car auctions) rebounded after reporting strong top-line growth and announced a large share buyback program. WillScot and ACV are good examples of niche (but essential) business models that can be discovered in the smaller cap segment of the equity market."

ACV Auctions Inc. (NYSE:ACVA) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 39 hedge fund portfolios held ACV Auctions Inc. (NYSE:ACVA) at the end of the second quarter, down from 47 in the previous quarter. While we acknowledge the potential of ACV Auctions Inc. (NYSE:ACVA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.