Wedgewood Partners, an investment management company, released its third-quarter 2025 investor letter. The letter is available for download here. AI stocks remain the favorite topic of Wall Street in the third quarter. In the third quarter, Wedgewood Composite’s net return was 5.9% compared to the Standard & Poor’s 8.1%, the Russell 1000 Growth Index’s 10.5%, and the Russell 1000 Value Index’s 5.3% return for the same period. In addition, you can check the fund’s best 5 holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was -0.40%, and its shares gained 50.67% of their value over the last 52 weeks. On October 21, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $251.34 per share, with a market capitalization of $3.07 billion.
Wedgewood Partners stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its third quarter 2025 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) was a top contributor to portfolio performance during the quarter, as the Company’s AI initiatives are driving strong growth in their advertising and cloud computing businesses. Furthermore, the U.S. Department of Justice proposed final remedies on Google’s online search monopoly that were less severe than Wall Street’s worst-case scenarios. This development allowed the forward earnings multiple to expand, bringing it more in line with the overall stock market. Alphabet’s core Google search business saw a +12% increase in revenues, thanks in part to its relatively new search results page feature, “AI Overviews,” which reaches over 2 billion users.
