What Makes Insight Enterprises (NSIT) an Attractive Investment Avenue in the Current Dynamic Technology Landscape?
Headwaters Capital Management, an investment management company, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund’s portfolio performed exceptionally well in the second quarter of 2023 and gained +17.4% (17.2% net) returns compared to a +4.8% return for the Russell Mid Cap Index. The firm remains optimistic about the prospects of the companies in its portfolio. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Headwaters Capital Management highlighted stocks like Insight Enterprises, Inc. (NASDAQ:NSIT) in the second quarter 2023 investor letter. Headquartered in Chandler, Arizona, Insight Enterprises, Inc. (NASDAQ:NSIT) provides information technology (IT) hardware, software services, and solutions. On July 28, 2023, Insight Enterprises, Inc. (NASDAQ:NSIT) stock closed at $144.93 per share. One-month return of Insight Enterprises, Inc. (NASDAQ:NSIT) was -0.99%, and its shares gained 54.23% of their value over the last 52 weeks. Insight Enterprises, Inc. (NASDAQ:NSIT) has a market capitalization of $4.821 billion.
Headwaters Capital Management made the following comment about Insight Enterprises, Inc. (NASDAQ:NSIT) in its second quarter 2023 investor letter:
"Insight Enterprises, Inc. (NASDAQ:NSIT): Architect and General Contractor Enabling Digital Transformation
Summary Thesis 1) Ongoing IT innovation and increasing IT complexity serve as secular tailwinds for NSIT’s solutions integrator business model. 2) Market share gains driven by scale of product distribution, breadth of vendor relationships and depth of IT expertise. 3) Margin and ROIC improvement from portfolio mix shift to a greater proportion of software and services revenue, augmented by specific margin improvement efforts in each product line. 4) Multiple expansion potential as revenue contribution from higher margin and less cyclical software and services revenue grows.
Insight Enterprises (“NSIT”) is a technology solutions integrator serving Fortune 500 companies globally. NSIT defines solutions integrator as a partner that can leverage technical expertise to deliver products, software and services that solve a client’s needs. I think it is easier to think of the company as an end-to-end enabler of digital transformation for large corporations. NSIT’s team of 4,500 IT experts can provide upfront consulting services to design a project roadmap to solve a client’s IT needs. NSIT then leverages the company’s roots as an IT reseller, where it’s relationships with over 6,000 OEMs and expertise with supply chain procurement and customization is a key differentiator versus traditional consulting firms. NSIT’s IT experts can then implement the project for the client and provide ongoing maintenance services following completion. This full life cycle management differs from pure IT resellers who don’t have the technical expertise for complex projects and from pure consulting firms who don’t have the supply chain procurement expertise. Specific digital transformation focus areas for NSIT include cloud migrations, infrastructure modernization, cybersecurity, modern apps and data/AI. …” (Click here to read the full text)
Insight Enterprises, Inc. (NASDAQ:NSIT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Insight Enterprises, Inc. (NASDAQ:NSIT) at the end of first quarter which was 23 in the previous quarter.
We discussed Insight Enterprises, Inc. (NASDAQ:NSIT) in another article and shared Aristotle Small Cap Equity Strategy's views on the company. 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.
