Operational Recovery Positions Advance Auto Parts (AAP) for Gains

Operational Recovery Positions Advance Auto Parts (AAP) for Gains

Tue, August 11, 2026 at 3:43 PM GMT+3 2 min read

• AAP -3.58%

Investment management company Curreen Capital released its second-quarter 2026 Investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned 22.26% compared to 15.20% for the S&P 500 Index. The performance was driven by active special case investments, including buying a tender offer, a merger-spinoff, and investments in affordable turnaround opportunities. The fund continues to hold spinoffs of reliable businesses at favorable price ratios and non-spinoff businesses that are undervalued compared to their downside valuation. In addition, please check the firm's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, Curreen Capital highlighted Advance Auto Parts, Inc. (NYSE:AAP). Based in Raleigh, North Carolina, Advance Auto Parts, Inc. (NYSE:AAP) is an automotive replacement parts and accessories provider. The one-month return of Advance Auto Parts, Inc. (NYSE:AAP) was 0.58%, and its shares lost 5.72% over the last 52 weeks. On August 10, 2026, Advance Auto Parts, Inc. (NYSE:AAP) stock closed at $55.73 per share, with a market capitalization of $3.36 billion.

Curreen Capital stated the following regarding Advance Auto Parts, Inc. (NYSE:AAP) in its Q2 2026 investor letter:

"Advance Auto Parts, Inc. (NYSE:AAP) is a store-based retailer of aftermarket automotive parts and supplies. This includes batteries, windshield wipers and fluid, air filters, motor oil, etc. The company has historically earned decent (approaching 20%) returns on tangible capital. The company is attempting a turnaround, and has fixed its balance sheet and is improving operations. Advance Auto currently trades at an attractive upside-to-downside ratio."

Advance Auto Parts, Inc. (NYSE:AAP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 34 hedge fund portfolios held Advance Auto Parts, Inc. (NYSE:AAP) at the end of the first quarter, up from 33 in the previous quarter. While we acknowledge the potential of Advance Auto Parts, Inc. (NYSE:AAP) 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 thebest short-term AI stock.

In another article, we covered Advance Auto Parts, Inc. (NYSE:AAP) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.