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 Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META), the parent company of dominant social media platforms, is a multinational technology company that develops products to connect people. On April 28, 2026, Meta Platforms, Inc. (NASDAQ:META) closed at $671.34 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was 15.90%, and its shares gained 22.28% over the past 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $1.70 trillion.
Wedgewood Partners stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q1 2026 investor letter:
“Meta Platforms, Inc. (NASDAQ:META) detracted from performance despite reporting fourth-quarter 2025 revenue growth of +24% and guiding to accelerating revenue growth of +30%, its fastest since 2021. The market began punishing stocks, such as Meta’s, that are spending heavily on capex to fund AI-related infrastructure, regardless of the tremendous productivity gains they have exhibited – with headcount up just +6% on +24% revenue growth. The market further pressured the stock after oil prices spiked at the beginning of March. The assumption was that disposable income would be cannibalized at the pump, pressuring broader retail activity and related ad budgets. The forward earnings multiple on Meta has fallen to levels more consistent with much slower growth than the Company has guided to. After trimming Meta several times over the past few years, we are more likely to add to positions based on the strong Company-specific benefits that their long-term AI investments are yielding, given a valuation that is at a substantial discount compared to growth stocks and recent history.”
Meta Platforms, Inc. (NASDAQ:META) holds 5th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 256 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the fourth quarter, compared to 273 in the previous quarter. While we acknowledge the risk and potential of Meta Platforms, Inc. (NASDAQ:META) 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 Meta Platforms, Inc. (NASDAQ:META) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Meta Platforms, Inc. (NASDAQ:META) and shared a list of most popular stocks on Robinhood in 2026. 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.
