Here’s Why Wedgewood Partners Continues to Hold its Apple (AAPL) Shares

Wedgewood Partners, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For calendar 2021, a portfolio net return of +32.1% was recorded by the fund, outperforming the S&P 500 Index that delivered a +28.7% return for the same period, and the +27.6% gain of the Russell 1000 Growth Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Wedgewood Partners, in its Q4 2021 investor letter, mentioned Apple Inc. (NASDAQ: AAPL) and discussed its stance on the firm. Apple Inc. is a Cupertino, California-based technology company with a $2.7 trillion market capitalization. AAPL delivered a -4.38% return since the beginning of the year, while its 12-month returns are up by 33.55%. The stock closed at $169.80 per share on January 18, 2022..

Here is what Wedgewood Partners has to say about Apple Inc. in its Q4 2021 investor letter:

“Top fourth quarter performance contributors include Apple. Apple was a top contributor to performance during the fourth quarter. Revenues grew by almost +30%, with earnings further boosted by margin gains from the insourcing of processor design and production for the Company’s Mac lineup. Despite these sourcing changes, Apple still ran into some shortages of mass market inputs and would have otherwise reported even higher growth. The Company also continues to take smartphone share in China roughly a year after Huawei was forced to abandon the industry. Apple’s iPhone franchise should be a beneficiary of Huawei’s colossal failure for some time. We continue to hold Apple shares as a core position.”

Our calculations show that Apple Inc. (NASDAQ: AAPL) ranks 10th on our list of the 30 Most Popular Stocks Among Hedge Funds. AAPL was in 120 hedge fund portfolios at the end of the third quarter of 2021, compared to 138 funds in the previous quarter. Apple Inc. (NASDAQ: AAPL) delivered a 15.86% return in the past 3 months.

In November 2021, we published an article that includes AAPL in the Top 10 Stocks to Buy According to Legendary Value Investor Joel Greenblatt. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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