Wedgewood Partners’ Investor Letter Dishes On QUALCOMM Inc (QCOM), Perrigo Company (PRGO), More

After a 21.75% appreciation in the second quarter, LKQ Corporation (NASDAQ:LKQ) became a top contributor to the portfolio of Wedgewood during the second quarter, as the company’s execution returned to form. As said in the letter, with around $7 billion in revenues, LKQ Corporation (NASDAQ:LKQ) is the largest distributor of recycled, refurbished, and aftermarket automotive replacement parts for collision and mechanic repairs in North America and Europe. These days, the company’s strategy is primarily focused on eliminating costs and redundancies and increasing fulfillment rates to end customers, which together with relatively affordable multiples, presents an interesting investment case. Matrix Capital Management, headed by David Goel and Paul Ferri, finished the first three months of the year with around 4.06 million shares of LKQ Corporation (NASDAQ:LKQ) valued at $103.70 million.

Perrigo Company (NYSE:PRGO) was also among the top-performing holdings of Wedgewood’s portfolio during the quarter, after receiving a hostile takeover offer from generic drug manufacturer, Mylan Inc (NASDAQ:MYL), based in the Netherlands. Upon the news, Perrigo’s share price spiked almost 20%. In general, Wedgewood remains confident in Perrigo’s unrivaled business model as a generic drug manufacturer, and will continue to closely monitor the company’s valuation, waiting for some merger‐related weakness to load on more shares. Following a 373% increase in its position in Perrigo Company (NYSE:PRGO), Jacob Gottlieb’s Visium Asset Management held 2.00 million shares with a value of $330.86 million on March 31.

Disclosure: None.