Wedgewood Partners, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, Wedgewood Composite’s net return was 5.5% compared to the Standard & Poor’s 2.4%, the Russell 1000 Growth Index’s 7.1%, and the Russell 1000 Value Index’s -2.0% return for the same period. Year to date, the composite returned 29.1% compared to the 25.0%, 33.4%, and 14.4% returns for the indexes, respectively. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
Wedgewood Partners highlighted stocks like CDW Corporation (NASDAQ:CDW), in the fourth quarter 2024 investor letter. CDW Corporation (NASDAQ:CDW) is an information technology (IT) solutions provider. The one-month return of CDW Corporation (NASDAQ:CDW) was 8.18%, and its shares lost 16.70% of their value over the last 52 weeks. On January 15, 2025, CDW Corporation (NASDAQ:CDW) stock closed at $187.46 per share with a market capitalization of $24.982 billion.
Wedgewood Partners stated the following regarding CDW Corporation (NASDAQ:CDW) in its Q4 2024 investor letter:
“CDW Corporation (NASDAQ:CDW) was a leading detractor from performance during the quarter and for the year. CDW is a distributor and reseller of technology solutions – including hardware, software, and services – primarily serving small businesses. A typical CDW customer has a few dozen employees and little if any dedicated IT professionals. This long tail of customers is difficult for large technology vendors to reach, making CDW an essential partner for many hardware and software service providers. Even though artificial intelligence is on the top of investors’ minds, many of CDW’s small business customers are still in the process of adopting basic IT solutions that are “old news” to most investors, such as cloud computing and digital security. As political winds in the U.S. shift toward supporting U.S. businesses, particularly through lower taxes, small businesses could benefit, which should help drive IT investments. CDW’s scale typically allows the Company to take share in small business IT spend, so we would expect any small business upturn to reaccelerate CDW’s growth profile.”
An IT Executive reviewing blueprints and schematics for a hardware solution.
CDW Corporation (NASDAQ:CDW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held CDW Corporation (NASDAQ:CDW) at the end of the third quarter which was 32 in the previous quarter. CDW Corporation (NASDAQ:CDW) reported net sales of $5.5 billion in the third quarter, down 2% year-over-year. While we acknowledge the potential of CDW Corporation (NASDAQ:CDW) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed CDW Corporation (NASDAQ:CDW) and shared Delaware Ivy Core Equity Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2024 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.