Wedgewood Partners, an investment management company, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Wedgewood Composite returned -6.3% (net) in the first quarter compared to the S&P 500’s -4.3%, the Russell 1000 Growth Index’s -9.8%, and the Russell 1000 Value Index’s 2.1% returns. The letter mentioned the ongoing war, highlighting the swift response of financial and commodities markets to military strikes and geopolitical commentary. Historically, oil shocks have consistently displayed a significant influence on global financial markets. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Wedgewood Partners highlighted stocks like Booking Holdings Inc. (NASDAQ:BKNG). Headquartered in Norwalk, Connecticut, Booking Holdings Inc. (NASDAQ:BKNG) is a leading online travel booking platform. On April 27, 2026, Booking Holdings Inc. (NASDAQ:BKNG) closed at $177.49 per share. One-month return of Booking Holdings Inc. (NASDAQ:BKNG) was 4.81%, and its shares lost 10.11% over the past 52 weeks. Booking Holdings Inc. (NASDAQ:BKNG) has a market capitalization of $137.47 billion.
Wedgewood Partners stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its Q1 2026 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG) detracted from overall performance during the quarter. Earnings per share grew +17%, with revenues up +16%, as travel demand remained strong late into 2025 and into early 2026. Most of the stock’s weakness stemmed from investors labeling it an “AI loser” and, later in the quarter, the outbreak of war in the Middle East. Consumer AI, as a disruptive force in existing commerce, is proving to be much more difficult than markets expect. We view these AI tools and distribution channels as incremental rather than as drivers of the “zero-sum” dynamics that markets have been craving. As for the Middle East, for now, it represents a short-term disruption to travelers, particularly air travelers, given credible risks to international airline fuel supplies. However, we expect this will not be a multi-year headwind – more like a few quarters.”
Booking Holdings Inc. (NASDAQ:BKNG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 109 hedge fund portfolios held Booking Holdings Inc. (NASDAQ:BKNG) at the end of the fourth quarter, up from 95 in the previous quarter. While we acknowledge the risk and potential of Booking Holdings Inc. (NASDAQ:BKNG) 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 Booking Holdings Inc. (NASDAQ:BKNG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Booking Holdings Inc. (NASDAQ:BKNG) and shared Fiduciary Management Inc.’s views on the company. In addition, please check out our hedge fund investor letters Q1 2026 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.
