Wedgewood Partners, an investment management company, released its fourth-quarter 2025 investor letter. The firm anticipates stronger market volatility in the coming years and has moderated its enthusiasm. A copy of the letter can be downloaded here. The Wedgewood Composite returned -1.8% (net) in the fourth quarter compared to the S&P 500’s 2.7%, the Russell 1000 Growth Index’s 1.1%, and the Russell 1000 Value Index’s 3.8% returns. YTD, the Composite gained 4.3% compared to 17.9%, 18.6%, and 15.9% returns for the indexes, respectively. Wedgewood Partners’ focus on high-quality stocks has historically worked since 1992, but not in 2025. The letter highlighted poor stock selection, the portfolio’s strong past performers due for valuation correction, and being structurally underweight in AI stocks drove the underperformance. The letter noted that in 2026, crowded AI investments and stretched valuations create pressure on prudent investment decisions. In addition, you can check the Fund’s top 5 holdings to determine its best picks for 2025.
In its fourth-quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as Edwards Lifesciences Corporation (NYSE:EW). Edwards Lifesciences Corporation (NYSE:EW) offers products and technologies for structural heart disease and critical care monitoring. On January 16, 2026, Edwards Lifesciences Corporation (NYSE:EW) stock closed at $84.35 per share. One-month return of Edwards Lifesciences Corporation (NYSE:EW) was -2.52%, and its shares gained 20.88% of their value over the last 52 weeksEdwards Lifesciences Corporation (NYSE:EW) has a market capitalization of $49.522 billion.
Wedgewood Partners stated the following regarding Edwards Lifesciences Corporation (NYSE:EW) in its fourth quarter 2025 investor letter:
“Edwards Lifesciences Corporation (NYSE:EW) also contributed to performance during the quarter. The Company presented favorable seven-year data for its transcatheter aortic valves, whereas competitive valves have exited several key markets. Edwards can drive double-digit earnings growth over the next few years, as its long-term data serves to evolve the standards of care and will make it easier for patients, doctors, and health systems to opt for its minimally invasive alternatives versus open heart surgery.”
Edwards Lifesciences Corporation (NYSE:EW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 64 hedge fund portfolios held Edwards Lifesciences Corporation (NYSE:EW) at the end of the third quarter, compared to 65 in the previous quarter. While we acknowledge the potential of Edwards Lifesciences Corporation (NYSE:EW) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
