Wedgewood Partners, an investment management firm, released its Q4 2025 investor letter. The firm anticipates greater market volatility in the coming years and has tempered its enthusiasm. A copy of the letter can be downloaded here. The Wedgewood Composite returned -1.8% (net) in the fourth quarter compared to 2.7% for the S&P 500, 1.1% for the Russell 1000 Growth Index, and 3.8% for the Russell 1000 Value Index. Year to date, the composite has gained 4.3% compared to returns of 17.9%, 18.6% and 15.9% for the indices, respectively. Wedgewood Partners’ focus on high-quality stocks has worked historically since 1992, but not in 2025. The letter highlighted poor stock selection, prior strong portfolio performance due to a valuation correction, and structural underweighting in AI stocks fueled the underperformance. The letter noted that in 2026, crowded AI investments and inflated valuations will create pressure on prudent investment decisions. Additionally, you can check out the Fund’s top five holdings to determine your best picks for 2025.
In its Q4 2025 investor letter, Wedgewood Partners highlighted Meta Platforms, Inc. (NASDAQ:META) as one of the top performance detractors. Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. On January 16, 2026, shares of Meta Platforms, Inc. (NASDAQ:META) closed at $620.25 per share. Meta Platforms, Inc. (NASDAQ:META)’s monthly performance was -6.24% and its shares gained 1.22% of its value in the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $1.56 trillion.
Wedgewood Partners stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2025 investor letter:
“MetaPlataformas, Inc. (NASDAQ:META) was one of the main factors that hurt performance during the quarter despite posting +26% revenue growth. Earnings per share grew less (+20%) after the Company increased spending related to its long-term AI ambitions. Meta’s social media platforms are more popular than ever: daily active users increased +8% during the September quarter compared to the previous year, and users spend +5% more time on their apps. The company’s social media giant, with just over 3.5 billion people accessing one of Meta’s platforms every day, generates huge volumes of highly valuable data for its global advertisers.
