Diamond Hill Capital Management: “We Maintain Conviction in WESCO International (WCC)”

Diamond Hill Capital Management, an investment advisor, released its “Small Cap Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The second quarter was challenging for US stocks and the Russell 2000 Index fell by more than 17%. The volatile market condition affected the fund’s portfolio performance; however, the fund performed better compared to the Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Diamond Hill Capital Management discussed stocks like WESCO International, Inc. (NYSE:WCC). Headquartered in Pittsburgh, Pennsylvania, WESCO International, Inc. (NYSE:WCC) is a utility distributor and supply chain services, provider. On September 2, 2022, WESCO International, Inc. (NYSE:WCC) stock closed at $131.86 per share. One-month return of WESCO International, Inc. (NYSE:WCC) was -0.44% and its shares gained 14.12% of their value over the last 52 weeks. WESCO International, Inc. (NYSE:WCC) has a market capitalization of $6.699 billion.

Here is what Diamond Hill Capital Management specifically said about WESCO International, Inc. (NYSE:WCC):

“A general selloff among industrials stocks tied to heightened expectations for a recession hit WESCO International, Inc. (NYSE:WCC) International particularly hard due to its somewhat elevated leverage. We maintain conviction in WESCO — a leading distributor of electrical, industrial and communications materials and provider of supply chain management and logistics services — as the largest player in a fragmented market. Its recent merger with a large competitor has given it still more bargaining power in an industry where scale is important, along with significant cost-cutting opportunities. Further, we believe the technical sophistication, customization and high cost of many of the products WESCO supplies, as well as the level of value-added services it provides, should allow the company to remain relatively insulated from e-commerce competition.”

High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.

WESCO International, Inc. (NYSE:WCC) is not on the list of 30 Most Popular Stocks Among Hedge Funds. WESCO International, Inc. (NYSE:WCC) was held by 48 hedge fund portfolios at the end of the second quarter compared to 33 in the previous quarter.

We discussed WESCO International, Inc. (NYSE:WCC) in another article and shared Diamond Hill Capital’s views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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