Carvana Stock Is Causing Pain, With Hedge Funds Set to Feel the Worst
- Stock has lost 97% of its value in the last 12 months
- Hedge funds own more than 25% of the company’s shares
A worker loads vehicles for inspection before being placed for sale at a Carvana Vending Machine location in Novi, Michigan.
Photographer: Emily Elconin/BloombergThis article is for subscribers only.
The spectacular plunge of Carvana Co.’s stock price is bringing pain to many investors, but one elite group on Wall Street is feeling it acutely -- hedge funds.
The online used-car dealer, which has seen its shares fall 97% in the last 12 months, was considered a hedge-fund darling, and for good reason. Collectively, these actively managed funds still own more than a quarter of the company’s shares, according to Bloomberg data.