Wedgewood Partners, an investment management firm, published its fourth quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly net increase of 5.2% has been recorded by the fund for the fourth quarter of 2022, below the S&P 500 Index’s 7.56% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
In its Q3 2022 investor letter, Wedgewood Partners mentioned Alphabet Inc. (NASDAQ:GOOG) and explained its insights for the company. Founded in 2015, Alphabet Inc. (NASDAQ:GOOG) is a Mountain View, California-based multinational technology conglomerate holding company with a $1.1 trillion market capitalization. Alphabet Inc. (NASDAQ:GOOG) delivered a 3.44% return since the beginning of the year, while its 12-month returns are down by -32.34%. The stock closed at $91.78 per share on January 17, 2023.
Here is what Wedgewood Partners has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2022 investor letter:
“Alphabet detracted (like most of our technology holdings) during the quarter and during the year. Alphabet grew its core search revenues high single digits (foreign exchange adjusted) on a staggering +71% year ago comparison. Despite this stellar top-line performance, shares continued to sell off as the market discounted fears of an advertising recession. Per our strategy’s discipline, our multiyear time horizon allows us to tolerate this exact kind of shortterm volatility in growth rates. The past few years of heightened economic volatility has been unprecedented, so a “normalization” of end-market demand at Alphabet is not the end of the world. Alphabet’s Cloud segment is generating revenue at a $25 billion run rate but is still running at a loss. This business is capable of generating much better margins in the future. In the meantime, the Company has a fortress balance sheet and has been repurchasing shares at attractive historical multiples.”
Photo by Kai Wenzel on Unsplash
Our calculations show that Alphabet Inc. (NASDAQ:GOOG) ranks 6th on our list of the 30 Most Popular Stocks Among Hedge Funds. Alphabet Inc. (NASDAQ:GOOG) was in 156 hedge fund portfolios at the end of the second quarter of 2022, compared to 153 funds in the previous quarter. Alphabet Inc. (NASDAQ:GOOG) delivered a -8.49% return in the past 3 months.
In January 2023, we also shared another hedge fund’s views on Alphabet Inc. (NASDAQ:GOOG) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.
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Disclosure: None. This article is originally published at Insider Monkey.