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Carvana’s Woes Saddle Hedge Fund CAS With Unprecedented 43% Loss

  • Shares of the used-car dealer have plummeted 75% this year
  • Carvana represented 25% of CAS’s equity capital as of March 31
Vehicles inside a Carvana car vending machine in Westminster, California.

Vehicles inside a Carvana car vending machine in Westminster, California.

Photographer: Patrick T. Fallon/Bloomberg

CAS Investment Partners’s huge bet on Carvana Inc. is backfiring in a big way. 

Its hedge fund, run by Clifford Sosin, has lost 43% this year, according to an investor letter seen by Bloomberg. The Sosin Partners fund makes concentrated bets on about eight stocks and had a quarter of its capital invested in Carvana as of the end of March. Shares of the troubled online platform for buying used cars tumbled 10% Friday, extending their decline this year to 75%.