Wedgewood Partners Q4 2025 13F Holdings and Activity Report

I. Institutional Overview

The institutional scale of Wedgewood, while modest compared to multi-billion-dollar hedge fund giants, allows for a level of agility and concentration that is often lost in larger AUM (Assets Under Management) structures. A portfolio of 21 stocks suggests a rigorous screening process where only the "best of the best" ideas survive. In the world of institutional finance, a holding count of fewer than 30 typically signals a concentrated investment philosophy . This approach is rooted in the belief that true alpha is generated by deeply understanding a handful of exceptional businesses rather than spreading capital across a wide array of average companies. For David Rolfe, the goal is not to mimic the index but to outperform it by identifying companies with sustainable competitive advantages, strong pricing power, and superior management teams.

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II. Sector Allocation Analysis

Similarly, the increased weight in Industrials, driven by additions to Old Dominion Freight Line (ODFL) and Motorola Solutions (MSI), signals a belief in the "reshoring" or "infrastructure upgrade" theme. Motorola Solutions, in particular, represents a niche in public safety and mission-critical communications—a business model with extremely high switching costs and government-backed revenue streams. This move suggests that Wedgewood is looking for "certainty" in an uncertain macro environment, moving some capital away from the volatile consumer-facing tech space into the more stable B2B and B2G (Business-to-Government) industrial space.

The 16.21% allocation to Consumer Discretionary is particularly interesting given the exit of Pool Corporation (POOL) and the new entry into Amazon (AMZN). This represents a "quality upgrade" within the sector. Pool Corp is a cyclical business tied to housing and discretionary home spending, which may face headwinds in a high-interest-rate environment. Amazon, conversely, is a multi-headed beast with a dominant cloud business (AWS) and a retail arm that has become an essential utility for many households. By swapping a niche cyclical player for a global platform leader, Rolfe is increasing the "durability" of his consumer exposure.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

III. Top 10 Holdings Deep Dive

The Top 10 holdings of Wedgewood Partners represent the "ballast stones" of the portfolio, accounting for a staggering 69.67% of the total reported value. This level of concentration means that the performance of these ten companies effectively dictates the success or failure of the entire fund.

The Top 10 holdings demonstrate a "Barbell Strategy." On one side, you have the Aggressive Growth of TSM, Meta, and Alphabet. On the other, you have the Steady Compounders like Visa, Booking Holdings, and Motorola Solutions. This structure allows Wedgewood to capture the upside of technological revolutions while maintaining a "floor" of companies with incredibly durable, recurring revenue streams. The high concentration in these ten names proves that David Rolfe is not a "closet indexer"—he is a high-conviction manager who puts his capital where his research points, regardless of market benchmarks.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

IV. Major Buys/Additions

Where did the money come from? The $17.6M for Chubb and $13.4M for Amazon were largely funded by the $15.6M cash-out from PayPal and the $13.5M trimming of Alphabet. This is a textbook example of "Inventory Reallocation." Rolfe is selling "broken" or "mature" growth stories (PayPal/Alphabet) to fund "emerging" or "resilient" growth stories (Amazon/Chubb).

The decision to add the iShares Russell 1000 Growth ETF (IWF) is also telling. It suggests that while Rolfe is a stock picker, he wanted to quickly deploy some excess cash into the broader growth factor to ensure the fund didn't miss a market rally while he was still building individual positions. This "placeholder" move indicates a bullish outlook on the "Growth" factor generally, even as he becomes more selective with individual stocks.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

This rotation significantly lowers the "Beta" of the portfolio while maintaining its "Alpha" potential. By exiting the underperformers (PayPal/Pool) and trimming the over-extended winners (Alphabet/Apple), Wedgewood has created a "cleaner" portfolio with higher average quality.

The major risk signal from these sells is a wariness of "Commoditized Growth." PayPal’s decline is a warning that even dominant tech players can be disrupted if their service becomes a commodity. Similarly, the exit from Pool Corp warns against holding niche cyclicals during a period of structural economic change. Wedgewood is signaling that in 2026 and beyond, "Quality" must be defined by pricing power and structural indispensability , not just historical growth rates.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

The AI "Foundry" Focus : By maintaining TSM as the #1 holding while trimming the software/hardware giants, Rolfe is signaling that the most "certain" way to play the AI revolution is at the manufacturing level. TSM’s moat is physical and technological, whereas the moats of Alphabet or Apple are increasingly being challenged by AI-driven competition. 3. Platform Consolidation : The entry into Amazon suggests that Wedgewood now views Amazon as the "ultimate" platform—one that combines the high-margin cloud business of AWS with a retail operation that has achieved massive scale and efficiency. It is a "Quality Upgrade" over the struggling PayPal.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.