Fiduciary Management Inc. (FMI), an independent money management firm, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. Despite the macroeconomic headwinds, the global market continued to advance in the second quarter. The FMI Large Cap Strategy gained 5.7% (gross) / 5.6% (net) in the quarter compared to an 8.74% increase in the S&P 500 Index and a 4.08% gain in the iShares Russell 1000 Value ETF. The FMI Small Cap Strategy gained 6.0% (gross) / 5.8% (net) compared to a 5.21% gain in the Russell 2000 Index and a 3.18% increase in the Russell 2000 Value Index in the same period. The FMI All Cap Equity gained 4.3% (gross) / 4.2% (net) compared to 8.38% for the iShares Russell 3000 ETF and the FMI International Strategies gained 5.5% (gross) / 5.3% (net) on a currency-hedged basis and 5.2% (gross) / 5.0% (net) on a currency unhedged basis in the second quarter of 2023. In addition, please check the fund’s top five holdings to know its best picks in 2023.
FMI highlighted stocks like CDW Corporation (NASDAQ:CDW) in the second quarter 2023 investor letter. Headquartered in Vernon Hills, Illinois, CDW Corporation (NASDAQ:CDW) provides information technology (IT) solutions. On July 13, 2023, CDW Corporation (NASDAQ:CDW) stock closed at $188.18 per share. One-month return of CDW Corporation (NASDAQ:CDW) was 5.63%, and its shares gained 16.51% of their value over the last 52 weeks. CDW Corporation (NASDAQ:CDW) has a market capitalization of $25.364 billion.
FMI made the following comment about CDW Corporation (NASDAQ:CDW) in its second quarter 2023 investor letter:
“CDW Corporation (NASDAQ:CDW) is a simple business with strong returns-on-capital, serving a growing global information technology (IT) industry. As a reseller of IT solutions, the company gives investors exposure to technology growth without subjecting them to the short product cycles, cut-throat competition, and poor capital allocation decisions that are typically inherent in technology investments. While the largest player in the industry, CDW only commands a small ~5% share of the North American IT market. We believe they can capture more market share moving forward as their size and scale creates competitive advantages, making them difficult to compete against, particularly for the smaller regional players that make up the majority of the market. The company’s margins should also expand over time as they sell more software, services, and solutions to end customers. CDW’s fundamentals currently reflect a slowdown in North American corporate IT spending; we believe this will prove to be a cyclical headwind that will dissipate over time. Strong execution along with a recovery in customer spending should give CDW the ability to generate double digit earnings per share growth annually over our investment time horizon. We believe the shares are trading at reasonable multiple on depressed earnings.”
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CDW Corporation (NASDAQ:CDW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held CDW Corporation (NASDAQ:CDW) at the end of first quarter which was 36 in the previous quarter.
We discussed CDW Corporation (NASDAQ:CDW) in another article and shared the list of large-cap stocks with insider buying. In addition, please check out our hedge fund investor letters Q2 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.
