Here’s Why Wedgewood Partners Stays Optimistic in Motorola Solutions (MSI)

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 Motorola Solutions, Inc. (NYSE: MSI) and discussed its stance on the firm. Motorola Solutions, Inc. is a Chicago, Illinois-based data communication company with a $41.4 billion market capitalization. MSI delivered a -9.65% return since the beginning of the year, while its 12-month returns are up by 41.45%. The stock closed at $245.49 per share on January 18, 2022.

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

“Top fourth quarter performance contributors include Motorola Solutions. Motorola Solutions generated +13% revenue growth and drove over +20% earnings per share growth as it sold a higher mix of high-margin, recurring software, with Company-wide margins well above-above pre-COVID peaks. Motorola is a key partner with public safety and corporate customers who operate land mobile radio (LMR) networks for decades, which requires numerous software updates and constant cybersecurity support. Further, the Company has amassed a suite of software offerings that manage public safety emergency and 911 call center workflows. We expect Motorola’s core public safety market to continue adopting these software and service solutions that drive higher productivity in the face of chronic labor shortages.”

Our calculations show that Motorola Solutions, Inc. (NYSE: MSI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. MSI was in 34 hedge fund portfolios at the end of the third quarter of 2021, compared to 37 funds in the previous quarter. Motorola Solutions, Inc. (NYSE: MSI) delivered a 1.00% return in the past 3 months.

In October 2021, we also shared another hedge fund’s views on MSI in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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