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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
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"Despite trailing concentrated benchmarks in 2025, Edgewood's high-conviction 22-stock portfolio generated an outstanding ~27% average EPS growth, building a powerful 'stored alpha' coiled spring poised to drive gains as market leadership broadens."
Edgewood Management LLC's Q4 2025 investor update details the performance, holdings, and strategy of the Edgewood Large Cap Growth Composite. While the fund trailed its benchmarks in 2025 (delivering a 7.04% net return vs. 17.88% for the S&P 500 and 18.56% for the Russell 1000 Growth), the underlying portfolio delivered an impressive average EPS growth rate of ~27%. Edgewood asserts that this divergence has created a ~26% 'stored alpha' opportunity within their 22-stock portfolio. During Q4, the fund actively positioned itself in next-gen secular growers by purchasing Axon Enterprise (AXON) and Amphenol (APH), while liquidating Copart (CPRT) and trimming positions in ASML, Airbnb, Eli Lilly, and NVIDIA. Edgewood emphasizes its rigorous risk controls, which restrict the portfolio to exactly 22 growth businesses divided into three distinct EPS growth buckets, with strict 2-8% single stock and 25% sector limits.
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Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
High-conviction positioning: Despite trailing concentrated benchmarks in 2025, Edgewood's high-conviction 22-stock portfolio generated an outstanding ~27% average EPS growth, building a powerful 'stored alpha'...
Growth Outlook
Market outlook remains high conviction: Despite trailing concentrated benchmarks in 2025, Edgewood's high-conviction 22-stock portfolio generated an outstanding ~27% average EPS growth, building a powerful 'stored alpha'...
Risk Appetite
Risk appetite posture is above average conviction: Despite trailing concentrated benchmarks in 2025, Edgewood's high-conviction 22-stock portfolio generated an outstanding ~27% average EPS growth, building a powerful 'stored alpha'...
Capital Deployment
Manager actively deployed capital into high-conviction opportunities. Despite trailing concentrated benchmarks in 2025, Edgewood's high-conviction 22-stock portfolio generated an outstanding ~27% average EPS growth, building a powerful 'stored alpha'...
Forward Guidance
Forward guidance signal: Despite trailing concentrated benchmarks in 2025, Edgewood's high-conviction 22-stock portfolio generated an outstanding ~27% average EPS growth, building a powerful 'stored alpha'...
Language Signal
Tone analysis indicates high conviction language: Despite trailing concentrated benchmarks in 2025, Edgewood's high-conviction 22-stock portfolio generated an outstanding ~27% average EPS growth, building a powerful 'stored alpha'...
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Despite trailing concentrated benchmarks in 2025, Edgewood's high-conviction 22-stock portfolio generated an outstanding ~27% average EPS growth, building a powerful 'stored alpha'...
Opportunity Density
Opportunity density index indicates high conviction actionable entry points. Despite trailing concentrated benchmarks in 2025, Edgewood's high-conviction 22-stock portfolio generated an outstanding ~27% average EPS growth, building a powerful 'stored alpha'...
Time Horizon
Investment time horizon reflects a high conviction orientation. Despite trailing concentrated benchmarks in 2025, Edgewood's high-conviction 22-stock portfolio generated an outstanding ~27% average EPS growth, building a powerful 'stored alpha'...
