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 Chubb Limited (NYSE:CB). Chubb Limited (NYSE:CB) is a leading insurance provider. On January 16, 2026, Chubb Limited (NYSE:CB) stock closed at $300.77 per share. One-month return of Chubb Limited (NYSE:CB) was -3.27%, and its shares gained 11.61% of their value over the last 52 weeks. Chubb Limited (NYSE:CB) has a market capitalization of $119.914 billion.
Wedgewood Partners stated the following regarding Chubb Limited (NYSE:CB) in its fourth quarter 2025 investor letter:
“We initiated a new position during the quarter in Chubb Limited (NYSE:CB), long a global leader in the property and casualty insurance industry. As you may know, Wedgewood has been somewhat unusual over time for a “growth” manager in holding positions across exceptional insurance-related industries, most notably as a 20-year shareholder in Berkshire Hathaway and, more recently, Progressive.
Chubb was founded in 1882 as a marine underwriting business in the New York City seaport district. While the Company is now domiciled in Switzerland, more than 60% of its revenues are generated in the U.S. The shares are listed on the New York Stock Exchange and are a component of the S&P 500 index.
Much of the business may be characterized as “specialty” or “non-standard,” which is the primary attraction for us. While Chubb offers more standard property and casualty insurance across both corporate and individual business segments, it leans heavily into areas such as risk engineering, director and of icer insurance, or unique areas such as energy or aviation in its corporate segments. The Company also focuses more on mid-sized and small businesses than on large businesses, even within more standard P&C lines. Further, the Company maintains a small but meaningful U.S. agricultural insurance business, covering areas such as crops, cattle, and horse ranches. Many of the Company’s corporate offerings are in areas not covered by mass-market insurance providers…” (Click here to read the full text)
Chubb Limited (NYSE:CB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 64 hedge fund portfolios held Chubb Limited (NYSE:CB) at the end of the third quarter, up from 61 in the previous quarter. While we acknowledge the risk and potential of Chubb Limited (NYSE:CB) 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 Chubb Limited (NYSE:CB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Chubb Limited (NYSE:CB) and shared the list of best cash-rich stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
