Argosy Investors, an investment management company, released its Q1 2026 investor letter. A copy is available to download here. The letter discussed the current transformative investment landscape driven by the AI capex boom. The author expressed skepticism about the durability of the earnings flowing to its market participants and suppliers. The main challenge during capex booms is balancing supply and demand, especially the accelerated shift of AI technologies. While companies benefit from rising volumes and prices, the potential for earnings to be overstated becomes a concern if supply catches up quicker than anticipated. In this backdrop, the firm remains cautious in taking investment decisions. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Argosy Investors highlighted stocks like 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 5, 2026, CDW Corporation (NASDAQ:CDW) closed at $133.04 per share. One-month return of CDW Corporation (NASDAQ:CDW) was 29.74%, and its shares lost 25.02% over the past 52 weeks. CDW Corporation (NASDAQ:CDW) has a market capitalization of $17 billion.
Argosy Investors stated the following regarding CDW Corporation (NASDAQ:CDW) in its Q1 2026 investor letter:
“I added to CDW Corporation (NASDAQ:CDW). CDW is the best-in-class value-added reseller of IT products, and recent product mix shifts towards more hardware (because of demand for AI) has driven margins lower and has highlighted potential for reduced software spend over time, where margins are much higher. CDW has a reputation for serving all sizes of customers as well as education and government customers, all constituencies which are slow to adopt new technology. I think at 11x FCF CDW is well-positioned to generate significant current return through a 2.5% dividend yield and significant share repurchases that could reduce shares outstanding by 20% in only a few years. CDW generally does not require significant capital to grow, so I think the assumption of meaningful capital return is relatively safe, assuming management does not engage in value-destroying acquisitions.”
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 Artisan Mid Cap Value Fund’s 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.
