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 Apple Inc. (NASDAQ:AAPL). Apple Inc. (NASDAQ:AAPL) is a leading multinational technology company that manufactures and markets smartphones, personal computers, tablets, wearables, and accessories. On July 16, 2026, Apple Inc. (NASDAQ:AAPL) closed at $333.26 per share. One-month return of Apple Inc. (NASDAQ:AAPL) was 11.83%, and its shares gained 57.81% over the past 52 weeks. Apple Inc. (NASDAQ:AAPL) has a market capitalization of $4.89 trillion.
Wedgewood Partners stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q2 2026 investor update:
"Top performance contributors for the second quarter include Taiwan Semiconductor Manufacturing, Alphabet, United Rentals, Apple Inc. (NASDAQ:AAPL), and Visa.
Apple was also a top contributor to performance during the quarter. Revenues grew 17%, driven by 22% growth in iPhone and 16% growth in services. The iPhone 17 family has catalyzed a solid upgrade cycle ahead of what we expect to be another strong launch later this year, featuring a new foldable form factor. Because input prices for DRAM have risen at a parabolic rate, the Company recently raised prices on some of its devices to pass these costs through. As one of the largest single purchasers of DRAM, the Company has strong negotiating leverage, but it can also implement hardware and software innovations to reduce its dependence on memory."