Madison Large Cap Fund Believes in CDW Corporation's (CDW) Long-Term Prospects

Madison Investments, an investment advisor, released its fourth-quarter 2025 investor letter for the “Madison Large Cap Fund”. A copy of the letter can be downloaded here. In the fourth quarter, the S&P 500 returned 2.65%, resulting in a full-year return of 17.9% for 2025. Over the last three years, the Index has achieved annual growth of over 21%. Following the recent trends, market leadership was defined by High Beta and Momentum factors, with narrow participation. However, in the fourth quarter, the market saw slight improvements in previously lagging sectors like Healthcare, Financials, and Consumer Discretionary. Still, mega-cap technology companies remained the primary drivers of the S&P 500's overall return, indicating high stock concentration. Against this backdrop, the Madison Large Cap Fund (Class I) appreciated 3.43% compared to the S&P 500 Index’s 2.65% return. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks like CDW Corporation (NASDAQ:CDW). CDW Corporation (NASDAQ:CDW) is an information technology (IT) solutions company. On February 23, 2026, CDW Corporation (NASDAQ:CDW) stock closed at $123.13 per share. One-month return of CDW Corporation (NASDAQ:CDW) was -3.35%, and its shares lost 34.05% over the past 52 weeks. CDW Corporation (NASDAQ:CDW) has a market capitalization of $16.138 billion.

Madison Large Cap Fund stated the following regarding CDW Corporation (NASDAQ:CDW) in its fourth quarter 2025 investor letter:

"The bottom five detractors for the quarter were Fiserv, CDW Corporation (NASDAQ:CDW), Copart, Progressive, and Texas Instruments. CDW, a value-added reseller of technology products, reported improving revenue growth. However, operating expenses grew faster in the quarter, so earnings growth was muted. Longer term, we believe that expenses will be held in check and earnings growth will pick back up."

CDW Corporation (NASDAQ:CDW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 57 hedge fund portfolios held CDW Corporation (NASDAQ:CDW) at the end of the fourth quarter, up from 48 in the previous quarter. In Q4 2025, CDW Corporation reported consolidates net sales (NASDAQ:CDW) of $5.5 billion, up 5% from Q4 2024. While we acknowledge the potential of CDW Corporation (NASDAQ:CDW) 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 CDW Corporation (NASDAQ:CDW) and shared Fenimore Asset Management's views on the company. In addition, please check out our hedge fund investor letters Q4 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.