Here’s What Hit CDW Corporation (CDW) in Q4

Market Overview - The stock market in 2025 was solid but volatile, influenced by AI enthusiasm, economic uncertainty, and monetary policy concerns [1] - The summer rally was driven by AI-related spending and economic resiliency, while the fourth quarter experienced volatility due to valuation pressures and macro uncertainty [1] - The S&P 500 Index rose by 2.66% in Q4 2025, with large-cap technology and communication services sectors leading the market [1] Fenimore Asset Management Performance - Fenimore Small Cap Strategy returned -4.12% in Q4 2025, underperforming the Russell 2000 Index, which returned 2.19% [1] - Fenimore Dividend Focus Strategy declined -4.41% in Q4 compared to the Russell Midcap Index's 0.16% return [1] - Fenimore Value Strategy declined -1.17% in Q4, also underperforming against the Russell Midcap Index's 0.16% return [1] - The underperformance in these strategies was attributed to underweight exposure to low-quality stocks and investments in the financial and industrial sectors [1] CDW Corporation Analysis - CDW Corporation (NASDAQ:CDW) was highlighted as a detractor to Fenimore Dividend Focus Strategy's performance [2] - As of January 15, 2026, CDW's stock closed at $132.29 per share, with a one-month return of -5.94% and a 52-week loss of 29.91% [2] - CDW Corporation has a market capitalization of $17.338 billion [2] - The IT industry faced challenges due to the pull forward of spending during COVID, although CDW experienced solid growth in most business lines except for education [3] - Overall earnings growth for CDW exhibited only modest improvement despite some momentum from the Windows 11 refresh [3] Future Outlook - The firm anticipates mixed market conditions in 2026, with many AI-related stocks appearing expensive while high-quality companies are trading at multi-year lows, presenting potential investment opportunities [1]