Wedgewood Partners Fund Reports 1.8% Loss in Q4 2025, Underperforming Major Indices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 19 2026
0mins
Should l Buy AMZN?
Source: seekingalpha
- Fund Underperformance: Wedgewood Partners Fund reported a 1.8% loss in Q4 2025, significantly trailing the Russell 1000 Growth Index and S&P 500, which gained 1.1% and 2.7%, respectively, indicating a competitive disadvantage in the market.
- New Investment Positions: During the same quarter, the fund established new positions in Amazon (NASDAQ:AMZN) and Chubb (NYSE:CB), reflecting a positive outlook on their growth potential in the evolving market landscape.
- Asset Disposal Strategy: The fund sold its investment in Pool (NASDAQ:POOL) in Q4 2025, likely to reallocate assets in response to market dynamics and optimize its investment portfolio.
- Market Environment Insight: In the context of a K-shaped economy, an increase in online shopping is anticipated, positioning Amazon as an attractive long-term investment opportunity, while Chubb maintains its status as a global leader in the property and casualty insurance sector, showcasing its competitive strength.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 201.150
Low
175.00
Averages
280.01
High
325.00
Current: 201.150
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Funding Boost: Anthropic announced a $30 billion funding round this month, boosting its valuation to $380 billion, reflecting investor confidence in its leadership in the enterprise AI sector and further solidifying its market position.
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See More
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- Oversold Conditions: The Relative Strength Index has fallen into oversold territory, historically associated with intermediate-term rebounds, and combined with significant deviations from key moving averages, this increases the likelihood of a technical rebound toward the $220 to $230 range.
- Profitability Metrics: Amazon's forward P/E ratio stands at approximately 25x, with expected EPS growth of 25% and net margins of 10.8%, all surpassing industry averages, highlighting its robust profitability in the AI infrastructure sector.
- Strategic Investment Opportunity: By selling the March 20, 2026 $200 put option, investors can potentially acquire Amazon shares at a net price of $192.97 if the stock closes below $200, offering a 3.64% discount and a maximum reward of $703 per contract, showcasing a risk-managed investment strategy.
See More
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- Tax Filing Insights: Amazon's 10-K filing revealed that despite rising profits in 2024, its tax burden plummeted from $9 billion to $1.2 billion, primarily due to new depreciation breaks and expanded R&D incentives, showcasing the profound impact of tax reform on corporations.
- Investment Commitment: Amazon stated it invested approximately $340 billion in the U.S. in 2025, indicating a strategic adjustment in response to tax policies, despite its significantly reduced tax burden, and demonstrating a commitment to domestic economic growth.
- Call for Social Responsibility: Warren emphasized that Trump redirected taxpayer funds, which could have lowered healthcare costs, to Bezos, advocating for a nation that prioritizes people over corporations, reflecting concerns about social equity.
See More
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- Market Expectation Shifts: Traders estimate a roughly 50% chance of the Fed cutting rates in June, suggesting a shift in market expectations regarding future interest rate movements, which could influence investor decisions and market volatility.
- AI Summit Highlights: At the AI Impact Summit in India, business leaders including OpenAI CEO Sam Altman and Alphabet CEO Sundar Pichai attended, with Adani announcing a $100 billion investment in AI data centers in India, showcasing a strong commitment to the AI sector.
- ECB Leadership Change: European Central Bank President Christine Lagarde plans to resign before her term ends in October 2027, allowing French President Emmanuel Macron to influence her successor, a move that has led to the Stoxx 600 index hitting a record high, reflecting market optimism about future policies.
See More
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- Investment Commitment: Amazon and Microsoft have pledged to invest $50 billion in India's AI ecosystem, demonstrating confidence in the country's technological development while providing local businesses with the necessary funding to accelerate growth in the AI sector.
- Infrastructure Development: Blackstone's $600 million investment in Indian AI infrastructure startup Neysa highlights the importance of foreign capital in the Indian AI market, which is expected to drive innovation and application of related technologies.
- Policy Support: The Indian government has announced a 400 billion Indian rupee ($4.4 billion) push for electronics manufacturing and a tax holiday for foreign cloud service companies using Indian data centers, aiming to attract more international firms to participate in local AI development.
- Market Challenges: Despite significant investments and policy support, analysts point out that India still faces numerous challenges in the AI sector, including a lack of sufficient regulatory frameworks and capital infusion, which could hinder its competitiveness in the global market.
See More
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- Market Concentration: The CRSP U.S. Total Market Index includes 3,498 companies, with the top 65 accounting for 70% of the total market value, indicating extreme wealth concentration that may increase market volatility risks.
- Strong Performance of Giants: The top four holdings in the CRSP U.S. Mega Cap Growth Index—Nvidia, Apple, Microsoft, and Alphabet—have a combined value of $14.9 trillion, driving consistent strong returns and reflecting the dominance of the tech sector.
- ETF Investment Advantages: The Vanguard Mega Cap Growth ETF has delivered a compound annual return of 13.6% since its inception in 2007, with an even faster 18.8% annual return over the last decade, showcasing its potential in tech and AI investments, making it suitable for diversified portfolios.
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