Wedgewood Partners released its fourth-quarter 2025 investor letter, anticipating increased market volatility. The firm’s Wedgewood Composite returned -1.8% in Q4 compared to benchmark indexes. The letter cited poor stock selection and structural underweight in AI stocks as driving underperformance, with 2026 expected to bring more investment pressure.

In the letter, Wedgewood Partners highlighted Apple Inc. (NASDAQ:AAPL) as a key stock in its Q4 2025 analysis. Apple Inc. (NASDAQ:AAPL) saw a one-month return of -5.70% and a 11.11% gain over the last 52 weeks. On January 16, 2026, Apple Inc. (NASDAQ:AAPL) stock closed at $255.52 per share, with a market cap of $3.76 trillion.

Wedgewood Partners praised Apple Inc. (NASDAQ:AAPL) in its Q4 2025 letter for strong financial performance, driven by revenue growth in its services business and double-digit growth in iPhone revenues. The company’s consistency in hardware and software upgrades provides a high-quality user experience, driving continued adoption and trade-up.

Apple Inc. (NASDAQ:AAPL) ranks 8th in the list of 30 Most Popular Stocks Among Hedge Funds. 166 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of Q3. Apple Inc. (NASDAQ:AAPL) reported revenue of $102.5 billion in the September quarter, showing an 8% year-over-year increase. While Apple Inc. (NASDAQ:AAPL) has investment potential, some AI stocks may offer greater upside potential with less downside risk.

Read more at Yahoo Finance: Apple (AAPL) Achieved an Adjusted EPS Growth of +13%