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CDW (CDW) Looks Attractive on Every Dip

Alex Smith

Aoris Investment Management recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Aoris International Fund aims to generate returns of 8–12% p.a. over a market cycle. The portfolio is long-only and highly selective. You should check out Aoris Investment Management’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.

In the said letter, Aoris Investment Management highlighted a few stocks and Cdw Corp (NASDAQ:CDW) is one of them. CDW is a provider of integrated information technology solutions. Year-to-date, Cdw Corp (NASDAQ:CDW) stock lost 25.8% and on May 21st it had a closing price of $107.21. Here is what Aoris Investment Management said:

"CDW is (by far) the largest reseller of IT hardware and software in the US, focusing on serving mid-sized corporations and public sector bodies. This is a market where size and scale are a huge advantage, reflected in the consistent market share gains CDW has made over the last decade. CDW had net debt to EBITDA of 2.3x at the end of 2019, the higher end of our comfort range but a level we do not anticipate will cause the company any difficulties.

In the coming 6–18 months we expect CDW to benefit from a phase of pent-up demand for IT, reflecting purchases that were put on hold during the shutdown period, as well as additional demand for devices and security software to enable organisations to better manage future work and study from home. A key strength of CDW is the ability to manage surges in demand, and we expect it to gain share at an elevated rate through the recovery period."

CDW Corp (NASDAQ:CDW)

In Q4 2019, the number of bullish hedge fund positions on Cdw Corp (NASDAQ:CDW) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that Cdw Corp (NASDAQ:CDW) isn’t among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we believe electric vehicles and energy storage are set to become giant markets, and we want to take advantage of the declining lithium prices amid the COVID-19 pandemic. So we are checking out investment opportunities like this one. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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