Madison Investments, an independently-owned investment firm, recently published its first-quarter Madison Investors Fund commentary – a copy of which can be downloaded here. During the first quarter of 2020, the Madison Investors Fund returned -20.53%, while the benchmark S&P 500 was down 19.6%.
In the said letter, Madison Investments highlighted Carmax Inc (NYSE:KMX), Cdw Corp (NASDAQ:CDW), and Omnicom Group Inc. (NYSE:OMC) stocks. CarMax is a used-car retail company. Cdw offers integrated information technology solutions. Omnicom is a global media, marketing and corporate communications holding company. Here is what Madison Investments said:
“CarMax. We sold CarMax based on our assessment that demand for big ticket consumer purchases may be deferred for some time after the crisis passes. In past recessions, consumers have taken some time to recover purchasing power. Unfortunately, we did realize the majority of CarMax stock’s quarterly losses.
CDW. This stock was sold in January when we thought too much optimism was embedded in its price.
Omnicom. We sold Omnicom in January on the acknowledgment that it would not outgrow GDP like we had posited in our investment thesis criteria.”
In Q4 2019, the number of bullish hedge fund positions on KMX stock increased by about 14% from the previous quarter (see the chart here).
In Q4 2019, the number of bullish hedge fund positions on CDW stock remained unchanged from the previous quarter (see the chart here).
In Q4 2019, the number of bullish hedge fund positions on OMC stock decreased by about 19% from the previous quarter (see the chart here).
Disclosure: None. This article is originally published at Insider Monkey.