Wedgewood Partners, an investment management company, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. Wedgewood Composite delivered a net return of 9.4% in the second quarter compared to 15.2% for the Standard & Poor's 500 Index, 16.7% for the Russell 1000 Growth Index, and 13.9% for the Russell 1000 Value Index. The firm is optimistic about the long-term growth of hyperscalers and has increased its investments in this sector, citing their significant earnings potential and crucial role in AI adoption. Capital has also been redirected towards technology hardware stocks, especially semiconductors, which now make up a larger share of the S&P 500 Index. Semiconductor stocks have benefited from hyperscalers' spending, but the firm expresses caution about cyclical risk and volatility. However, the momentum-driven market negatively affected the Wedgewood fund's high-quality stocks, leading to a 25% return over the past 15 months, significantly underperforming the 90% gain of the S&P 500 Momentum ETF (SPMO). In addition, please check the Fund's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Wedgewood Partners highlighted United Rentals, Inc. (NYSE:URI). United Rentals, Inc. (NYSE:URI) is a leading equipment rental company headquartered in Stamford, Connecticut. On July 16, 2026, United Rentals, Inc. (NYSE:URI) stock closed at $1,071.82 per share. One-month return of United Rentals, Inc. (NYSE:URI) was -0.46%, and its shares gained 32.64% over the past 52 weeks. United Rentals, Inc. (NYSE:URI) has a market capitalization of $67.15 billion.
Wedgewood Partners stated the following regarding United Rentals, Inc. (NYSE:URI) in its Q2 2026 investor update:
"Top performance contributors for the second quarter include Taiwan Semiconductor Manufacturing, Alphabet, United Rentals, Inc. (NYSE:URI), Apple, and Visa.
United Rentals was a top performer across portfolios. Equipment rental sales growth accelerated to 9%, while adjusted margins stabilized, driving 10% growth in earnings per share. This acceleration was driven by strong nonresidential construction end markets, particularly data centers and power projects, and by continued growth in megaprojects."