Online auto dealer Carvana's plunge a ride to ruin for hedge funds

A worker loads up vehicles for inspection before being placed for sale at a Carvana Vending Machine location in Novi, Michigan on Nov. 3, 2021. MUS...

November 29, 2022
3:42 AM

A worker loads up vehicles for inspection before being placed for sale at a Carvana Vending Machine location in Novi, Michigan on Nov. 3, 2021. MUST CREDIT: Bloomberg photo by Emily Elconin. 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 past 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.

Esha Dey Bloomberg News