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 Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services, including online search and advertising, cloud solutions, and artificial intelligence. On April 28, 2026, Alphabet Inc. (NASDAQ:GOOG) stock closed at $347.50 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was 17.84%, and its shares gained 115.99% over the past 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $4.20 trillion.
Wedgewood Partners stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q1 2026 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) grew its core search revenue by +17% and continues to accelerate as users spend more time on Google properties, driven by the Company’s AI offerings (AI Mode and AI Overviews). At the same time, Google advertisers are adopting more AI-enabled tools to improve ad relevance and accuracy. These AI gains are unlocking significant productivity and driving margin expansion across both core Google services and the $70 billion run-rate Google Cloud business. Given this massive operating leverage, an accelerating revenue profile, and a historic ability to generate high returns on invested capital, we believe their elevated capex spending plans this year are fully justified. We continue to hold Alphabet as a top weighting.”
Alphabet Inc. (NASDAQ:GOOG) ranks 7th on our list of 40 Most Popular Stocks Among Hedge Funds. As per our database, 203 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the fourth quarter which was 186 in the previous quarter. In 2025, Alphabet Inc. (NASDAQ:GOOG) achieved its first-ever $400 billion annual revenue. While we acknowledge the risk and potential of Alphabet Inc. (NASDAQ:GOOG) 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 Alphabet Inc. (NASDAQ:GOOG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Alphabet Inc. (NASDAQ:GOOG) and shared the list of best edge computing stocks to buy. 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.
