Wedgewood Partners Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

Analyzing the historical tenure of the holdings further clarifies the institutional portrait. Many of the core positions, such as Alphabet Inc., Apple Inc., and Visa Inc., have been staples of the portfolio for over a decade. This "buy and hold" mentality is a hallmark of an institution that views itself as a part-owner of businesses rather than a mere trader of ticker symbols. However, the activity in the first quarter of 2026 shows that even the most patient investors are not static. The quarter was characterized by a systematic rebalancing effort, where the team harvested gains from long-term winners to seed new opportunities in sectors like insurance and luxury homebuilding.

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II. Sector Allocation Analysis

The concentration within the top three sectors—Technology, Consumer Discretionary, and Communication Services—accounts for approximately 67.77% of the total portfolio. This high level of focus indicates that the institution is primarily betting on the "digital economy" and the "modern consumer." However, the internal shifts within these sectors tell a more nuanced story. Technology remains the largest allocation at 31.48%, but it has seen significant trimming, most notably in the semiconductor space. This suggests a belief that while technology remains the primary engine of global growth, the valuations or the cyclical peaks in certain sub-sectors may have reached a point of diminishing returns.

The allocation to Consumer Discretionary, at 19.26%, reflects a strong belief in the resilience of the high-end consumer and the dominance of global e-commerce platforms. The significant increase in the position of Amazon.com, Inc. this quarter is the primary driver of this sector's importance. By shifting weight into this area, the institution is moving away from "pure hardware" technology and toward "platform" technology that integrates deeply into the daily lives of consumers and businesses. This is a move toward more durable, recurring revenue streams and away from the more volatile capital expenditure cycles of the semiconductor industry.

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

Alphabet remains the largest position in the portfolio, a testament to its status as a "conviction holding" that Wedgewood has maintained for over a decade. Despite a 5.01% reduction in the number of shares held this quarter, the position still commands a 9.25% weight. This minor trim appears to be a tactical rebalancing rather than a shift in fundamental belief. Alphabet’s dominance in search and its growing prowess in cloud computing and artificial intelligence provide a multi-layered growth story. The institution likely views Alphabet as a "utility of the internet," where its core advertising business generates massive cash flows that can be reinvested into moonshot projects and AI infrastructure. The slight decrease in weight from 9.58% to 9.25% suggests that the management team is simply managing the position size to prevent it from becoming an oversized risk factor, especially as they look to fund new entries in other sectors.

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

The most significant new entry this quarter is The Progressive Corporation, with an estimated investment of $16.52 million. This move represents a "defensive clustering" strategy. Progressive is a leader in the auto insurance industry, known for its data-driven underwriting and technological edge through telematics. By establishing a 3.41% position from scratch, Wedgewood is signaling a desire for "non-correlated growth." The insurance industry often thrives when other sectors struggle, as it relies on pricing power and investment income. In an environment where tech valuations are stretched, Progressive offers a high-quality business model with a proven ability to gain market share from less efficient competitors. The institution is likely betting on Progressive’s ability to continue raising premiums to offset inflationary pressures, while benefiting from a stabilizing interest rate environment that boosts its massive bond portfolio.

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

The most significant qualitative move this quarter was the complete liquidation of PayPal Holdings. Wedgewood had held this position for over 10 years, making the exit a "logical clearing" of a long-term thesis that has likely broken down. PayPal has faced intense competition from Apple Pay, Block, and traditional banks, leading to a steady erosion of its "moat" in the checkout space. By selling the entire $12.6 million stake, the institution is acknowledging that PayPal no longer fits the "quality growth" criteria. This is an "error-correcting exit," where the management team has decided to move on from a legacy winner that has become a value trap. The timing suggests they preferred to reallocate this capital into more promising growth engines like Amazon.

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 logic chain is clear: Sell the "Enablers" to buy the "Users" and the "Defenders." The massive addition to Amazon shows a preference for a company that uses technology to dominate real-world logistics and consumer behavior. The new positions in Progressive and Toll Brothers represent a move into "Defenders"—companies with massive scale, pricing power, and essential services that can withstand economic volatility. This is a bet on "Quality Cyclicals" and "Defensive Growth." The institution is essentially saying that in an uncertain macro environment, the most valuable assets are those that provide "certainty of cash flow" and "tangible value" to the consumer.

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.