Is TD SYNNEX (SNX) a Smart Long-Term Investment?

Greenlight Capital, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. The Greenlight Capital funds (the “Partnerships”) returned 4.4%1 in the first quarter of 2022, compared to a 4.6% decline for the S&P 500 index. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Greenlight Capital mentioned TD SYNNEX Corporation (NYSE:SNX) and explained its insights for the company. Founded in 1980, TD SYNNEX Corporation (NYSE:SNX)  is a Fremont, California-based B2B IT services provider with a $9.9 billion market capitalization. TD SYNNEX Corporation (NYSE:SNX)  delivered a -9.69% return since the beginning of the year, while its 12-month returns are down by -16.84%. The stock closed at $103.28 per share on April 21, 2022.

Here is what Greenlight Capital has to say about TD SYNNEX Corporation (NYSE:SNX) in its Q1 2022 investor letter:

“We reinitiated a position in SNX as we believe the company’s recent merger with Tech Data has created the top global IT distributor with potential for significant EPS accretion through cost and revenue synergies. The company recently held its first analyst day since the transaction closed in September at which management laid out a path that we believe will achieve EPS of $20 in a few years. We acquired our stake at an average price of $105.33, or just over 9x current year consensus EPS. SNX shares ended the quarter at $103.21.”


Our calculations show that TD SYNNEX Corporation (NYSE:SNX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. TD SYNNEX Corporation (NYSE:SNX) was in 22 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 24 funds in the previous quarter. TD SYNNEX Corporation (NYSE:SNX) delivered a -0.99% return in the past 3 months.

In January 2021, we also shared another hedge fund’s views on TD SYNNEX Corporation (NYSE:SNX) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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