Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -14.1% compared to a return of -17.0% for the Russell 2500 Index. Since inception, the fund returned 10.3% compared to 4.9% for its benchmark index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
In the second quarter 2022 investor letter, Wedgewood Partners discussed stocks like Pool Corporation (NASDAQ:POOL). Headquartered in Covington, Louisiana, Pool Corporation (NASDAQ:POOL) is a swimming pool and other leisure products distributor. On September 28, 2022, Pool Corporation (NASDAQ:POOL) stock closed at $329.14 per share. One-month return of Pool Corporation (NASDAQ:POOL) was -2.29% and its shares lost 24.23% of their value over the last 52 weeks. Pool Corporation (NASDAQ:POOL) has a market capitalization of $13.031 billion.
Here is what Wedgewood Partners specifically said about Pool Corporation (NASDAQ:POOL) in its Q2 2022 investor letter:
“Those of you who own a backyard pool already know the Pool Corporation (NASDAQ:POOL) story quite well. (Honey, why is the pool water green?) Those who don’t own a pool, well, we recommend a little rentseeking on your neighbor’s pool by owning these shares. The Poolcorp strategy is beautifully simple; build a pool and become its customer for life. Once the major discretionary expenditure of building a pool is made, that high-maintenance asset becomes an annual annuity for your local pool service company. Increasingly, that local pool service company could well be owned by Poolcorp.
Those who own older pools know quite well that pool maintenance is much more involved (read: expensive) than just annual chemicals in the early years. Once a pool reaches its early teen years (often sooner), maintenance reaches a very different level of (read: expensive) when every part of the pool’s filtration system wears out. As the years progress, then pool/backyard rebuild kicks off. Well, that original pool becomes a brand-new second pool. Rinse and repeat. Your local pool-service company is assuredly not the lonely Maytag repairman. …” (Click here to read the full text)
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Pool Corporation (NASDAQ:POOL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Pool Corporation (NASDAQ:POOL) at the end of the second quarter which was 42 in the previous quarter.
We discussed Pool Corporation (NASDAQ:POOL) in another article and shared the best stocks to buy in 2022 according to billionaire Richard Chilton. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
