Wedgewood Partners, a renowned investment management firm, recently published its fourth-quarter investor letter for 2025, offering insights into its outlook for the future. As the financial landscape grows more unpredictable, the firm has scaled back its previously optimistic stance, bracing for increased market volatility in the years ahead.
In the fourth quarter of 2025, the Wedgewood Composite posted a return of -1.8% (net). By comparison, the S&P 500 saw a modest gain of 2.7%, while the Russell 1000 Growth Index and Russell 1000 Value Index returned 1.1% and 3.8%, respectively. Looking at the year-to-date performance, the Composite delivered a 4.3% return, which, while positive, lagged behind the impressive 17.9%, 18.6%, and 15.9% returns of these same indexes.
Wedgewood Partners’ investment philosophy remains centered around high-quality growth stocks. Despite the challenges of the past quarter, the firm continues to prioritize a disciplined approach to stock selection, emphasizing resilience in the face of market shifts. The team at Wedgewood is carefully navigating the complexities of today’s market, adjusting its strategies to safeguard against volatility while seeking long-term growth opportunities.
In the coming years, the firm expects heightened risks but remains committed to its core strategy of investing in companies with strong fundamentals, a long track record of success, and the ability to withstand market turbulence.