Right Tail Capital, an investment management company, released its third-quarter 2024 investor letter. A copy of the same can be downloaded here. Right Tail aims to generate high after-tax returns and compound wealth over multiple years by investing in a concentrated portfolio of undervalued, high-quality firms and thinking long-term. Also, the firm believes that market declines will bring great opportunities to invest in high-quality businesses with a long-term mindset. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Right Tail Capital highlighted stocks like CDW Corporation (NASDAQ:CDW), in the third quarter 2024 investor letter. CDW Corporation (NASDAQ:CDW), with a market capitalization of $29.54 billion, is an information technology (IT) solutions provider. The one-month return of CDW Corporation (NASDAQ:CDW) was -2.15%, and its shares gained 9.74% of their value over the last 52 weeks. On October 11, 2024, CDW Corporation (NASDAQ:CDW) stock closed at $222.00 per share with a market capitalization of $29.825 billion.
Right Tail Capital stated the following regarding CDW Corporation (NASDAQ:CDW) in its Q3 2024 investor letter:
“In the spirit of long-term investing, let’s discuss our investment in technology resellers CDW Corporation (NASDAQ:CDW) and NSIT. I’ve been studying CDW for the last 10 years and invested in both companies during 2022. I consider them one position with CDW being the larger position of the two.
CDW is an exceptional IT solutions provider superbly positioned among a fragmented group of customers and vendors. CDW provides IT solutions (hardware, software and services) to more than 250,000 customers primarily in the US and Canada. They help their customers navigate an increasingly complex IT market and maximize returns on their technology investments. CDW’s $21B in revenue suggests that the company has less than 10% market share in an estimated addressable market opportunity at ~$440B. The company came public for the second time in 2013 at $17 per share and today has a market cap of ~$30B (~13x higher) and enterprise value of $35B…” (Click here to read the full text)
An IT Executive reviewing blueprints and schematics for a hardware solution.
CDW Corporation (NASDAQ:CDW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held CDW Corporation (NASDAQ:CDW) at the end of the second quarter which was 31 in the previous quarter. During the second quarter, CDW Corporation (NASDAQ:CDW) delivered net sales of $5.4 billion, a 3.6% decrease from Q2 2023, and a gross profit of $1.2 billion, which was flat 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 Aoris Investment Management’s views on the company in the previous quarter. 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.
