Should You Invest in Arrow Electronics (ARW)?

Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The overweight exposure to the financials sector led the strategy to underperform the Russell Midcap Index in the quarter while industrials and select energy holdings contributed to the relative performance. The strategy returned -2.00% compared to the Russell Midcap Index’s 4.06% return. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.

Diamond Hill Mid Cap Strategy highlighted stocks like Arrow Electronics, Inc. (NYSE:ARW) in the first quarter 2023 investor letter. Headquartered in Centennial, Colorado, Arrow Electronics, Inc. (NYSE:ARW) provides electronic components and enterprise computing solutions to industrial and commercial users. On May 16, 2023, Arrow Electronics, Inc. (NYSE:ARW) stock closed at $119.15 per share. One-month return of Arrow Electronics, Inc. (NYSE:ARW) was 4.65%, and its shares lost 2.95% of their value over the last 52 weeks. Arrow Electronics, Inc. (NYSE:ARW) has a market capitalization of $6.731 billion.

Diamond Hill Mid Cap Strategy made the following comment about Arrow Electronics, Inc. (NYSE:ARW) in its Q1 2023 investor letter:

“As is often the case, market volatility offers unique opportunities to shift the portfolio, capitalizing on valuations to introduce new holdings which we believe will offer attractive long-term returns. Accordingly, we capitalized on Q1’s choppiness to initiate positions in Arrow Electronics, Inc. (NYSE:ARW), Allstate, Stifel Financial and Fidelity National Information Services.

Arrow Electronics is one of the largest global distributors of electronic components and enterprise solutions. We expect the company to capitalize on its cash flow-generating business to repurchase shares and reduce debt — which should drive attractive returns for shareholders over time.”

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Arrow Electronics, Inc. (NYSE:ARW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Arrow Electronics, Inc. (NYSE:ARW) at the end of the fourth quarter which was 31 in the previous quarter.

We discussed Arrow Electronics, Inc. (NYSE:ARW) in another article and shared the list of technology stocks that are too cheap to ignore. In addition, please check out our hedge fund investor letters Q1 2023 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.