Wedgewood Partners Reports Q1 2026 Performance, Cites Meta Growth Concerns

Wedgewood Partners has published its investor letter for the first quarter of 2026, revealing the performance of its Wedgewood Composite fund amidst a volatile market environment. The report provides a detailed look at how the firm's holdings fared against major benchmarks during the start of the year. The fund's performance lagged behind the broader market, reflecting the challenges faced by growth-oriented portfolios. The Wedgewood Composite recorded a net return of -6.3% for the quarter. In comparison, the S&P 500 declined by 4.3%, while the Russell 1000 Growth Index saw a sharper drop of 9.8%. In contrast, the Russell 1000 Value Index posted a positive return of 2.1%. A key point of analysis in the letter focuses on Meta Platforms (META). The firm suggests that the current earnings multiple for the social media giant is a reflection of the market's expectations for slower growth moving forward. This indicates a recalibration of valuation metrics as investors adjust their long-term growth projections for the company. Overall, the letter underscores a period of divergence between growth and value stocks, with the firm navigating a landscape of shifting expectations for mega-cap technology holdings.