Is it Wise to Invest in CDW Corporation (CDW)?

Wedgewood Partners, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2022, the fund’s Composite (net) declined by -10.6%. The S&P 500 Index declined by -4.6%. The Russell 1000 Growth Index declined -by 9.0%, while the Russell 1000 Value Index declined -by 0.7%. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Wedgewood Partners mentioned CDW Corporation (NASDAQ:CDW) and explained its insights for the company. Founded in 1984, CDW Corporation (NASDAQ:CDW)  is a Vernon Hills, Illinois-based technology products and services provider with a $23.3 billion market capitalization. CDW Corporation (NASDAQ:CDW)  delivered a -15.53% return since the beginning of the year, while its 12-month returns are down by -4.34%. The stock closed at $172.97 per share on April 15, 2022.

Here is what Wedgewood Partners has to say about CDW Corporation (NASDAQ:CDW) in its Q1 2022 investor letter:

“CDW logged steady, double-digit revenue and operating earnings growth during the quarter as its “Omni-Office” strategy of outfitting small and medium businesses with software, hardware and services – wherever workers decide or need to work – continues to resonate. CDW organizes itself across several end-markets, with each of these end markets at different stages of building out its omni-office presences. As IT hardware has become increasingly scarce due to vendor shortages and strong demand, CDW has flexed its balance sheet in the short-term in order to ensure inventory availability for long-term customers to continue this omni-office buildout. We expect this pressure on inventory turns will eventually return to normal and help sustain historically high returns on capital. The market continues to be infatuated with software services and has overlooked the fact that software providers rely on CDW for distribution in the small- and mediumsized business segment. CDW’s consistent returns, cheap multiple, and mission-critical functions that it offers to vendors and customers continues to be an attractive risk-reward for portfolios.”

Our calculations show that CDW Corporation (NASDAQ:CDW) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. CDW Corporation (NASDAQ:CDW) was in 37 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 37 funds in the previous quarter. CDW Corporation (NASDAQ:CDW) delivered a -10.86% return in the past 3 months.

In July 2021, we published an article that includes CDW Corporation (NASDAQ:CDW) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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