Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund (Class Y) decreased 1.86% compared to the 0.62% increase for the Russell Midcap Index. The Fund returned 10.46% in the full year 2024 period, compared to 15.34% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Madison Mid Cap Fund 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 15.00%, and its shares lost 15.02% of their value over the last 52 weeks. On January 29, 2025, CDW Corporation (NASDAQ:CDW) stock closed at $195.53 per share with a market capitalization of $26.057 billion.
Madison Mid Cap Fund stated the following regarding CDW Corporation (NASDAQ:CDW) in its Q4 2024 investor letter:
“The bottom five detractors for the quarter were Arch Capital Group, Carlisle Companies, CDW Corporation (NASDAQ:CDW), Floor & Decor Holdings, and Brown-Forman. CDW shares underperformed following another quarter of disappointing organic growth and profitability. We believe the weakness is largely attributable to a poor IT spending environment, amplified by CDW’s outsized exposure to small and medium-sized businesses.
We didn’t make any new investments in the quarter, but added to two holdings: Microchip and CDW. As described above, we attribute CDW’s recent disappointing financial performance largely to cyclical factors. The company’s strong customer and vendor relationships, and sales-driven culture all remain intact. Thus, as IT budgets normalize, especially within CDW’s core customer verticals, the company should resume its pattern of reliable, steady growth.”
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 Wedgewood Partners’ views on the company. In addition, please check out our hedge fund investor letters Q3 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.