Apple (AAPL) Achieved an Adjusted EPS Growth of +13%

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 Apple Inc. (NASDAQ:AAPL). Apple Inc. (NASDAQ:AAPL) is an American multinational company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The one-month return of Apple Inc. (NASDAQ:AAPL) was -5.70%, and its shares gained 11.11% of their value over the last 52 weeks. On January 16, 2026, Apple Inc. (NASDAQ:AAPL) stock closed at $255.52 per share, with a market capitalization of $3.76 trillion.

Wedgewood Partners stated the following regarding Apple Inc. (NASDAQ:AAPL) in its fourth quarter 2025 investor letter:

“Apple Inc. (NASDAQ:AAPL) contributed to performance as adjusted earnings per share grew +13%, driven by +15% revenue growth in its services business, which accelerated compared to last quarter and generated over $100 billion in revenue over the past 12 months. Further, the Company guided to strong double-digit revenue growth in its holiday quarter, driven by double-digit growth in iPhone revenues, as it experienced strong demand after launching several new models in the previous quarter. Apple’s multi-decade consistency in executing on hardware and software upgrades, along with increasingly proprietary silicon content, provides consumers with a dependable, high-quality user experience that should continue to drive adoption and trade-up.”

Apple Inc. (NASDAQ:AAPL) is in 8th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 166 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the third quarter, which was 156 in the previous quarter. Apple Inc. (NASDAQ:AAPL) reported revenue of $102.5 billion in the September quarter, reflecting an 8% year-over-year increase. While we acknowledge the risk and potential of Apple Inc. (NASDAQ:AAPL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Apple Inc. (NASDAQ:AAPL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Apple Inc. (NASDAQ:AAPL) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.