The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Wedgewood Partners returned 9.4% in Q2 2026 versus 15.2% for the S&P 500, bringing YTD returns to 2.5% versus 10.2%. The fund significantly underperformed momentum-driven indices, which gained 90% over 15 months versus the fund's 25%, as high-quality stocks experienced their worst underperformance since 1999. Despite this, the manager increased positions in hyperscalers (Alphabet, Amazon, Meta, Microsoft), arguing their massive AI capex spending is rational given 30%+ returns on capital and that unrealized investment gains in SpaceX, Anthropic, and OpenAI effectively hedge against DRAM inflation. Top contributors included Taiwan Semiconductor, Alphabet, and United Rentals, driven by AI infrastructure demand. The manager warns semiconductor stocks are at cyclical peaks with potential oversupply by 2028, despite historic profit growth at companies like SK Hynix and Micron. New positions include Hermès, viewed as a rare luxury brand with genuine pricing power from nearly 200 years of artisanal craftsmanship and constrained supply. The fund continues fishing in the quality pond, recently adding Chubb and Progressive, viewing current underperformance as opportunity.
Hyperscalers are rationally deploying massive AI capex while maintaining 30%+ returns on capital, with their investments in AI companies serving as effective hedges against component inflation, making current depressed valuations attractive long-term opportunities despite near-term free cash flow concerns and negative sentiment.
The manager remains bullish on hyperscalers despite near-term headwinds, viewing their AI capex spending as rational given exceptional returns on capital and massive unrealized investment gains serving as hedges. However, the manager is explicitly cautious on semiconductor stocks, warning of classic cyclical peak dynamics and potential oversupply by 2028. The continued focus on high-quality stocks reflects conviction that current historic underperformance versus momentum strategies will eventually reverse, creating opportunities for patient capital.
As of Jul 15, 2026
David A. Rolfe, CFA serves as Chief Investment Officer and has been with Wedgewood Partners since 1992, bringing over three decades of experience in growth equity investing. William M. Thomas operates as CEO, President, and Chairman since 2015, providing executive leadership and strategic direction. Michael X. Quigley, CFA functions as Senior Portfolio Manager and Senior Analyst since 2002, contributing significant analytical expertise. Christopher Jersan, CFA serves as Portfolio Manager since 2016, supporting the investment process with focused research capabilities. Steven D. Kaufmann acts as Director of Business Development & Trading since 2006, managing client relationships and portfolio implementation. The leadership team demonstrates remarkable longevity and commitment to the firm's investment philosophy. David Rolfe also serves as portfolio manager for the Wedgewood Fund offered through RiverPark Funds. The team's collective experience spans multiple market cycles and economic environments. Their approach emphasizes business ownership mentality rather than short-term trading strategies. The management team maintains direct client communication through quarterly newsletters and transparent reporting.
Quality Value / Growth
Lead Portfolio Manager
David A. Rolfe
Managing Partner
Moderate Conviction Bullish
Market Conviction
The manager demonstrates high conviction through concentrated portfolio construction (10% position limits actively enforced), specific position sizing language ('increased positions,' 'trimmed,' 'initiated'), and detailed fundamental analysis with falsifiable claims about returns on capital, asset growth rates, and investment valuations. The letter names 20 specific holdings with substantive commentary, including exact performance contributions and detailed business analysis. The multi-page deep dive on Hermès with specific margin data, growth rates, and competitive dynamics shows research depth. However, the portfolio is not extremely concentrated (appears to be 15-25 positions based on context), and the manager acknowledges significant underperformance, which introduces some uncertainty. The hedged language around semiconductor cyclicality and the emphasis on risk management through position limits prevent a score above 0.75.
Growth Outlook
Market outlook remains high conviction: Wedgewood's concentrated large-cap growth portfolio declined 6.3% in Q1 2026 as geopolitical tensions from the Iran conflict pressured markets despite strong AI-driven fundamentals...
Risk Appetite
Risk appetite posture is very low conviction: Wedgewood's concentrated large-cap growth portfolio declined 6.3% in Q1 2026 as geopolitical tensions from the Iran conflict pressured markets despite strong AI-driven fundamentals...
Capital Deployment
The manager engaged in active rotation during the quarter: bought Hermès, sold three positions (Tractor Supply, Zoetis, CDW), increased six positions (Chubb, Progressive, Meta, Amazon, Microsoft, Visa), and trimmed three positions (United Rentals, Alphabet, Taiwan Semiconductor). This represents capital rotation rather than net deployment or de-risking. The letter describes being 'unusually busy' but the activity is balanced between adds and trims. No cash level changes are mentioned, and the emphasis on maintaining 10% position limits suggests the portfolio remains fully invested with active rebalancing. This rotation activity with no net cash change scores in the neutral to mildly positive range.
Forward Guidance
Forward guidance signal: Wedgewood's concentrated large-cap growth portfolio declined 6.3% in Q1 2026 as geopolitical tensions from the Iran conflict pressured markets despite strong AI-driven fundamentals...
Language Signal
The letter contains significant bearish language around semiconductors: 'cyclical top traps,' 'notoriously cyclical,' 'stocks lead fundamental results, often by years,' 'froth,' 'casino-like trading,' and warnings about 'massive speculative ecosystem.' Risk language dominates the semiconductor discussion. Bullish language appears around hyperscalers ('astonishing,' 'extraordinary,' 'excellent long-term investment opportunity') and Hermès ('powerful brand equity,' 'exceptional profitability'). However, the extended warnings about momentum excess, quality underperformance at '1999 extremes,' and cyclical peaks create a more cautious overall tone. The balance tilts slightly positive given the conviction on hyperscalers, but the extensive risk discussion prevents a higher score.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Wedgewood's concentrated large-cap growth portfolio declined 6.3% in Q1 2026 as geopolitical tensions from the Iran conflict pressured markets despite strong AI-driven fundamentals...
Opportunity Density
The manager sees selective opportunities in specific areas: hyperscalers trading at 'historically depressed multiples' despite strong fundamentals, quality stocks at '1999 extremes' of underperformance creating 'good fishing,' and new additions like Hermès at 'more reasonable levels' after temporary disruption. The phrase 'good fishing' in the quality pond suggests an improving opportunity set in that segment. However, the manager explicitly warns away from semiconductors despite their strong performance, indicating selectivity rather than broad opportunity. The letter identifies 4-5 specific opportunity areas (hyperscalers, quality stocks, luxury, insurance, construction equipment) but characterizes the overall environment as requiring selectivity and discipline. This supports a moderately positive opportunity density score.
Time Horizon
The manager demonstrates a multi-year investment horizon through several indicators: emphasis on 'long-term investment opportunity' for Amazon despite near-term free cash flow concerns, discussion of AI demand visibility 'years out' rather than quarters, analysis of Hermès' 200-year history and multi-decade brand building, and willingness to hold through significant underperformance (25% versus 90% for momentum indices over 15 months). The letter discusses semiconductor cycles playing out 'often by years' and DRAM hedges lasting 'several years.' However, the active trimming of winners and quarterly rebalancing activity suggests the manager is not purely buy-and-hold. The 34-year firm history and emphasis on quality compounding support a longer-term orientation, but the active trading and quarterly performance focus prevent a score above 0.75. This indicates a 2-4 year typical holding period with willingness to extend for high-conviction names.
Top Conviction Themes
Key Catalysts
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