David Rolfe - Wedgewood Partners Portfolio Q2'2025: Top Holdings & Recent Changes
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David Rolfe, founder of Wedgewood Partners, continues to refine his investment strategy through his Q2 2025 portfolio, which reflects a cautious approach to the tech and consumer sectors. Notably, Rolfe reduced positions in several key holdings, including Meta Platforms by 1.76%, Taiwan Semiconductor Manufacturing Company by 16.60%, and Alphabet Inc. by 18.81%. These adjustments highlight a strategic rebalancing in response to market conditions.
Portfolio Overview: Concentrated Excellence
Portfolio Highlights (Q2 2025): - Market Value: $515.2M - Top 10 Holdings: 69.5% - Portfolio Size: 19 positions (down by 1) - Average Holding Period: 24 quarters - Turnover: 15.8%
Wedgewood Partners' portfolio is characterized by a concentrated approach, with the top 10 holdings accounting for nearly 70% of the portfolio. This strategy emphasizes quality over quantity, focusing on established companies with strong fundamentals. The recent turnover of 15.8% indicates a moderate level of activity, reflecting Rolfe's willingness to adjust positions in response to market dynamics.
The portfolio's average holding period of 24 quarters underscores a long-term investment philosophy, where patience and conviction are key. This approach allows Wedgewood to ride out market fluctuations and capitalize on the intrinsic value of its holdings over time.
Holdings Overview: Tech and Consumer Focus
The portfolio is anchored by Meta Platforms at 10.3%, despite a reduction of 1.76%. Taiwan Semiconductor Manufacturing Company holds 9.2% after a significant reduction of 16.60%. Microsoft Corporation is at 8.0% following a slight reduction of 0.72%. Alphabet Inc. remains a key holding at 7.6%, though it was reduced by 18.81%. Apple Inc. accounts for 6.4% after a reduction of 1.96%.
Other notable positions include PayPal Holdings at 6.1%, Booking Holdings at 6.0%, Visa Inc. at 5.7%, and Tractor Supply Company at 5.5%. Motorola Solutions rounds out the list with a 4.7% holding.
What the Portfolio Reveals
Wedgewood Partners' portfolio strategy highlights several key themes: - Quality Over Growth: The focus on established tech and consumer companies reflects a preference for quality and stability over speculative growth. - Sector Focus: The emphasis on technology and consumer sectors indicates a belief in their long-term potential. - Geographic Concentration: The portfolio is heavily weighted towards U.S. companies, with some international exposure through holdings like Taiwan Semiconductor Manufacturing Company. - Risk Management: The recent reductions across several positions suggest a cautious approach to managing risk in a volatile market environment.
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Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Meta Platforms, Inc. | $53.0M | 10.3% | Reduce 1.76% |
| Taiwan Semiconductor Manufacturing Company Limited | $47.2M | 9.2% | Reduce 16.60% |
| Microsoft Corporation | $41.0M | 8.0% | Reduce 0.72% |
| Alphabet Inc. | $39.3M | 7.6% | Reduce 18.81% |
| Apple Inc. | $32.9M | 6.4% | Reduce 1.96% |
| PayPal Holdings, Inc. | $31.7M | 6.1% | Reduce 1.67% |
| Booking Holdings Inc. | $31.0M | 6.0% | Reduce 2.68% |
| Visa Inc. | $29.3M | 5.7% | Reduce 4.55% |
| Tractor Supply Company | $28.1M | 5.5% | Reduce 1.52% |
The concentration of Wedgewood Partners' portfolio highlights a strategic focus on a few high-quality companies. The recent reductions across several positions indicate a proactive approach to managing risk and rebalancing the portfolio in response to market conditions.
Investment Lessons from David Rolfe's Strategy
David Rolfe's investment approach offers several key lessons: - Concentration When You Understand the Businesses: Wedgewood Partners' focus on a few quality companies underscores the importance of deep understanding and conviction in investment decisions. - Holding Periods Matter: The long average holding period reflects a commitment to long-term value creation over short-term gains. - Quality Businesses Justify Premium Prices: The emphasis on established tech and consumer companies suggests that quality can justify higher valuations. - Position Sizing Requires Constant Attention: The adjustments in portfolio positions highlight the need for ongoing evaluation and rebalancing.
Looking Ahead: What Comes Next?
As Wedgewood Partners looks ahead, the current portfolio positioning suggests a cautious optimism about the tech and consumer sectors. With a moderate level of cash available for deployment, Rolfe may be poised to capitalize on new opportunities as market conditions evolve. The focus on quality and stability positions the portfolio well for long-term growth, though ongoing market volatility may necessitate further adjustments.
FAQ about David Rolfe's Portfolio
Q: What is the significance of the recent reductions in Wedgewood Partners' portfolio?
A: The reductions reflect a strategic rebalancing to manage risk and adjust to market conditions. This proactive approach ensures the portfolio remains aligned with Wedgewood's investment thesis.
Q: How does Wedgewood Partners' portfolio concentration impact its strategy?
A: The concentration on a few high-quality companies allows for deep understanding and conviction in investment decisions, emphasizing long-term value creation over short-term gains.
Q: How can investors track David Rolfe's portfolio changes?
A: Investors can track changes in David Rolfe's portfolio through 13F filings and platforms like ValueSense, which provide insights into his investment strategy and recent moves.
Q: What sectors does Wedgewood Partners focus on?
A: The portfolio has a strong focus on technology and consumer sectors, reflecting a belief in their long-term potential.
Q: How does the 45-day reporting lag of 13F filings impact tracking superinvestors?
A: The lag means that investors see portfolio changes after they have occurred. However, platforms like ValueSense help analyze these changes and provide insights into superinvestors' strategies.
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