Here’s How WESCO International (WCC) Benefitted from Acquisition
Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio delivered positive results in the second quarter while modestly trailing the Russell Midcap Index. The healthcare holdings positively contributed to the relative performance while the information technology and materials holdings trailed benchmark peers. The fund returned 6.76% (net) in Q2 compared to 9.10% for the benchmark. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Capital Mid Cap Strategy highlighted stocks like WESCO International, Inc. (NYSE:WCC) in the second quarter 2023 investor letter. Headquartered in Pittsburgh, Pennsylvania, WESCO International, Inc. (NYSE:WCC) offers business-to-business distribution, logistics services, and supply chain solutions. On September 6, 2023, WESCO International, Inc. (NYSE:WCC) stock closed at $158.02 per share. One-month return of WESCO International, Inc. (NYSE:WCC) was 3.11%, and its shares gained 14.29% of their value over the last 52 weeks. WESCO International, Inc. (NYSE:WCC) has a market capitalization of $8.121 billion.
Diamond Hill Capital Mid Cap Strategy made the following comment about WESCO International, Inc. (NYSE:WCC) in its Q2 2023 investor letter:
"Among our top contributors in Q2 were WESCO International, Inc. (NYSE:WCC) and Enovis. WESCO International is a leading distributor of electrical, industrial and communications materials. Its recent acquisition of Anixter is generating better revenue and cost synergies than anticipated, giving a boost to shares. Further, easing supply chain constraints should enable WESCO to generate significant free cash flow in 2023’s second half — which should also bolster the company’s ability to weather any impending macroeconomic weakness. Looking forward, we believe the Anixter merger presents a meaningful value creation opportunity and are encouraged by the company’s overall approach to bolt-on acquisitions."
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WESCO International, Inc. (NYSE:WCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held WESCO International, Inc. (NYSE:WCC) at the end of second quarter which was 51 in the previous quarter.
We discussed WESCO International, Inc. (NYSE:WCC) in another article and shared the list of best stocks to buy that are on the rise. 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.
