Wedgewood Partners, an investment management company, released its fourth-quarter 2025 investor letter. The firm anticipates stronger market volatility in the coming years and has moderated its enthusiasm. A copy of the letter can be downloaded here. The Wedgewood Composite returned -1.8% (net) in the fourth quarter compared to the S&P 500’s 2.7%, the Russell 1000 Growth Index’s 1.1%, and the Russell 1000 Value Index’s 3.8% returns. YTD, the Composite gained 4.3% compared to 17.9%, 18.6%, and 15.9% returns for the indexes, respectively. Wedgewood Partners’ focus on high-quality stocks has historically worked since 1992, but not in 2025. The letter highlighted poor stock selection, the portfolio’s strong past performers due for valuation correction, and being structurally underweight in AI stocks drove the underperformance. The letter noted that in 2026, crowded AI investments and stretched valuations create pressure on prudent investment decisions. In addition, you can check the Fund’s top 5 holdings to determine its best picks for 2025.
In its fourth-quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as Old Dominion Freight Line, Inc. (NASDAQ:ODFL). Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is a less-than-truckload motor carrier that provides regional, inter-regional, and national less-than-truckload services, as well as expedited transportation. On January 16, 2026, Old Dominion Freight Line, Inc. (NASDAQ:ODFL) stock closed at $175.68 per share. One-month return of Old Dominion Freight Line, Inc. (NASDAQ:ODFL) was 10.26%, and its shares lost 7.33% of their value over the last 52 weeks. Old Dominion Freight Line, Inc. (NASDAQ:ODFL) has a market capitalization of $36.922 billion.
Wedgewood Partners stated the following regarding Old Dominion Freight Line, Inc. (NASDAQ:ODFL) in its fourth quarter 2025 investor letter:
“Old Dominion Freight Line, Inc. (NASDAQ:ODFL) contributed to performance as investors rotated into more economically sensitive sectors late in the year. After favoring technology and particularly AI focused investments for most of the year, investors became more optimistic about the possibility of a rebound in industrial activity, a core source of demand for Old Dominion’s leet. We added to positions before the rally as we expect the Company will continue to manage its capacity exceptionally well, keeping costs under control and taking price as it provides dependable service for its tariff-addled customers. We do not know how to time economic cycles, but we do know how to identify great businesses that should take proit share regardless of the macroeconomic backdrop. Over time, we expect the market to eventually reward those best-in-class businesses such as Old Dominion.”
Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 51 hedge fund portfolios held Old Dominion Freight Line, Inc. (NASDAQ:ODFL) at the end of the second quarter, up from 33 in the previous quarter. In the third quarter of 2025, Old Dominion Freight Line, Inc. (NASDAQ:ODFL) reported revenue of $1.41 billion, a 4.3% decline from the previous year. While we acknowledge the risk and potential of Old Dominion Freight Line, Inc. (NASDAQ:ODFL) 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 Old Dominion Freight Line, Inc. (NASDAQ:ODFL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Old Dominion Freight Line, Inc. (NASDAQ:ODFL) and shared the list of best dividend stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2025 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.
