, Columnist
Carvana Delivers Agony and Ecstasy for Hedge Funds
The online used-car dealer has staged an extraordinary turnaround, rewarding investors who stood by their convictions.
Carvana’s astonishing turnaround has rewarded investors who kept the faith.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
Picking stocks is a hard game, but Carvana Co. seems to possess a particular ability to bedevil hedge fund managers. The online used-car dealer’s improbable recovery from near-bankruptcy has rewarded investors who remained on the rollercoaster even as motion sickness drove others to the exit.
Carvana’s survival now looks secure after the Arizona-based company slashed costs, slowed its expansion and became profitable. But its eyepopping valuation means it’s still an investment only for the brave.