Middle Coast Investing, an investment advisor firm, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Q2 marked the S&P 500’s best quarter since Q2 2020, yet underlying market dynamics remained unchanged. The letter highlighted that the market’s performance continued to rely on trends and baskets rather than company fundamentals. Significant events happened in Q2, including the theoretical end of the U.S. war with Iran and SpaceX’s record IPO. Despite the positive sentiment, mega-cap tech companies performed poorly while semiconductor stocks and other data center buildout-related stocks rallied. The portfolio returned 12.5% in the second quarter compared to 14.9% for the S&P 500 Index, while YTD the fund returned 7.7% compared to 9.6% for the Index. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Middle Coast Investing highlighted CDW Corporation (NASDAQ:CDW). CDW Corporation (NASDAQ:CDW) is an information technology (IT) solutions company that operates through its Commercial, Government, and Education segments. On July 2, 2026, CDW Corporation (NASDAQ:CDW) closed at $133.37 per share. One-month return of CDW Corporation (NASDAQ:CDW) was 1.94%, and its shares lost 25.54% over the past 52 weeks. CDW Corporation (NASDAQ:CDW) has a market capitalization of $17.04 billion.
Middle Coast Investing stated the following regarding CDW Corporation (NASDAQ:CDW) in its Q2 2026 investor letter:
“CDW Corporation (NASDAQ:CDW) is a tech distributor. Instead of buying from Apple, Amazon, or HP directly, you might work through CDW. That gives you IP support along with the right array of hardware and software.
TD Synnex and Ingram Micro usually trade for lower price-to-earnings ratios than CDW. They are more focused on the raw distribution of computers, hardware, and actual gear than CDW. That has changed in 2026, though, as TD Synnex has soared, in large part due to its Hyve business unit. Hyve helps companies set up data center infrastructure, in the chain with SuperMicroComputer (SMCI), Dell (DELL), and similar beneficiaries of the AI boom.
CDW distributes more software, which is out of favor, and is increasingly viewed as a commodity. I think that’s overshot the mark. The stock sold off 27% after the company more or less reported in-line earnings. Which perhaps confirmed that it is not as hot as SNX and others. But we bought at less than 10x earnings. Since then, the stock has popped back up 35% or so, and our mistake was making this only a small position…” (Click here to read the full text)
