Pzena Investment Management recently released its first-quarter 2026 commentary for “Pzena Focused Value Strategy.” A copy of the letter can be downloaded here. The equity market faced challenges in the first quarter due to the Iran conflict and the related energy price hike, compounded by continued AI-related uncertainty. Despite this volatility, energy stocks led the value index higher, but the portfolio fell short of the index and returned -4.7% (net) vs. 2.1% for the Russell 1000 Value Index. Despite the uncertainty, the firm believes that the current environment presents a strong long-term opportunity. In addition, you can check the Fund’s top five holdings to see its best picks for 2026.
In its first-quarter 2026 investor letter, Pzena Focused Value Strategy highlighted CDW Corporation (NASDAQ:CDW). CDW Corporation (NASDAQ:CDW) is an information technology (IT) solutions company that operates through Commercial, Government, and Education segments. On June 22, 2026, CDW Corporation (NASDAQ:CDW) closed at $123.57 per share. One-month return of CDW Corporation (NASDAQ:CDW) was 13.80%, and its shares lost 31.29% over the past 52 weeks. CDW Corporation (NASDAQ:CDW) has a market capitalization of $15.79 billion.
Pzena Focused Value Strategy stated the following regarding CDW Corporation (NASDAQ:CDW) in its Q1 2026 investor letter:
“We also initiated a position in CDW Corporation (NASDAQ:CDW), the largest value-added technology reseller in the U.S. Two factors have weighed on the shares: AI related fears that we believe are misplaced, and recent margin pressure from investments to broaden the product portfolio, which we view as strategically sound.”
CDW Corporation (NASDAQ:CDW) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 46 hedge fund portfolios held CDW Corporation (NASDAQ:CDW) at the end of the first quarter, compared to 58 in the previous quarter. While we acknowledge the risk and potential of CDW Corporation (NASDAQ:CDW) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CDW Corporation (NASDAQ:CDW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CDW Corporation (NASDAQ:CDW) and shared Argosy Investors’ views on the company. In addition, please check out our hedge fund investor letters Q1 2026 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.
