WESCO International (WCC) Surged Amid a Solid Demand Environment

Diamond Hill Capital, an investment management company, released its “Small-Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q2, the market surged uniformly for the rest of the quarter following a sharp decline in April due to President Trump’s “Liberation Day” tariffs announcement. The portfolio returned 5.60% (gross) and 5.37% (net) compared to an 8.59% return for the Russell 2500 Index. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its second-quarter 2025 investor letter, Diamond Hill Small-Mid Cap Fund highlighted stocks such as WESCO International, Inc. (NYSE:WCC). WESCO International, Inc. (NYSE:WCC) offers business-to-business distribution, logistics services, and supply chain solutions. The one-month return of WESCO International, Inc. (NYSE:WCC) was 2.73%, and its shares gained 30.21% of their value over the last 52 weeks. On August 11, 2025, WESCO International, Inc. (NYSE:WCC) stock closed at $203.55 per share, with a market capitalization of $9.905 billion.

Diamond Hill Small-Mid Cap Fund  stated the following regarding WESCO International, Inc. (NYSE:WCC) in its second quarter 2025 investor letter:

"On an individual holdings’ basis, top contributors to return in Q2 included Red Rock Resorts and WESCO International, Inc. (NYSE:WCC). Shares of industrial distributor WESCO rose amid a solid demand environment, particularly among data center customers. Long term, we expect WESCO to leverage its significant scale advantage to capture market share and improve margins. Further, the company is well-positioned to benefit from several secular tailwinds aside from data centers — all factors which the market has not yet fully appreciated."

WESCO International, Inc. (NYSE:WCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held WESCO International, Inc. (NYSE:WCC) at the end of the first quarter, which was 62 in the previous quarter. While we acknowledge the potential of WESCO International, Inc. (NYSE:WCC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered WESCO International, Inc. (NYSE:WCC) and shared the list of cheap value stocks to buy according to Seth Klarman. Third Avenue Real Estate Value Fund increased its investment in WESCO International, Inc. (NYSE:WCC) during Q2 2025. In addition, please check out our hedge fund investor letters Q2 2025 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.