Group 1 - Meta Platforms, Inc. (NASDAQ:META) is recognized as one of the 13 best Fortune 500 stocks to invest in currently, driven by significant hedge fund interest [1] - The company is planning to finalize a nearly $30 billion financing package for its Hyperion data center project in rural Louisiana, marking the largest private capital deal on record [2] - The financing structure includes over $27 billion in debt and approximately $2.5 billion in equity, with Meta retaining a 20% stake and Blue Owl Capital holding the remainder [3] Group 2 - The Hyperion data center project reflects Meta's ambition to expand its AI infrastructure amid competition among hyperscale cloud providers [4] - Meta Platforms, Inc. enables social connections and media content sharing globally through various platforms, including mobile devices, PCs, and virtual reality headsets [4]

Core Insights - The favorable antitrust ruling for Alphabet's Google has allowed the company to maintain its core search business, positively impacting its stock performance and contributing 3.1% to the fund this quarter [3] - UnitedHealth's stock rebounded after a significant decline earlier in the year, adding 0.9% to the fund, driven by optimistic comments from the new CEO and investment interest from Berkshire Hathaway [4] - Progressive was the largest detractor in the quarter, reducing performance by 0.5% due to concerns over lower interest rates affecting investment income [5] Performance Summary - The Bretton Fund achieved a return of 8.21% for the third quarter, outperforming the S&P 500 Index, which returned 8.12% [7] - Over the past year, the fund's return was 8.92%, while the S&P 500 Index returned 17.60% [7] - The fund's inception date was September 30, 2010, and it has delivered a 12.89% return since inception [7] Portfolio Composition - As of September 30, 2025, Alphabet Inc. constituted 11.51% of the fund's net assets, making it the largest holding [11] - Other significant holdings included AutoZone Inc. at 7.11% and The Progressive Corporation at 6.84% [11] - The fund also held positions in major companies like American Express, JPMorgan Chase, and UnitedHealth, each contributing to the overall portfolio diversity [11] Investment Actions - The fund sold its position in Union Pacific Corp after nearly 15 years, achieving a 13% annualized internal rate of return [14] - The decision to sell was influenced by concerns over a pending acquisition that could dilute shareholder value and distract management from core operations [15]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Alphabet Inc. regarding shareholder interests [1] Summary by Relevant Sections - The investigation pertains to whether Alphabet's management acted in the best interests of shareholders [1] - Shareholders who acquired Alphabet stock on or before February 4, 2020, may have options for seeking corporate governance reforms and financial incentives [1]

Core Viewpoint - Alphabet is experiencing significant developments, including a new browser announcement from OpenAI and ongoing negotiations with Anthropic for additional computing power, indicating management's belief in future growth despite challenges in their search business [1][3][4]. Company Developments - The stock of Alphabet is currently performing well, reflecting investor confidence despite concerns about its search market share [2][3]. - Alphabet's management is actively investing in other business areas, such as cloud services, which are expected to drive future growth [4][5]. Market Challenges - There are concerns regarding a potential decline in Alphabet's search market share, with estimates suggesting a possible decrease of 20-25% this year [6][12]. - The competitive landscape is intensifying, with new AI-driven search mechanisms emerging, posing a threat to Alphabet's dominance in search [12][14]. Financial Considerations - Alphabet has substantial cash flow, which could support share buybacks and maintain higher earnings per share (EPS) even if search revenues decline gradually [17]. - The company's capital expenditures (capex) are heavily directed towards AI investments, which may limit the funds available for share buybacks [18][19].

Core Insights - Google shares have risen following a quantum computing breakthrough and reports of a multi-billion dollar cloud deal with Anthropic, indicating a shift in investor sentiment towards innovation rather than just search dominance [1][3] - The recent volatility in Google shares reflects the impact of competitive AI developments, particularly OpenAI's new Atlas browser, which poses a threat to Google's advertising revenue [2][5] - Investors are increasingly focused on Google's ability to lead in AI across enterprise and consumer sectors, as well as in quantum computing, rather than solely on its search and ad business [3][4] Company Developments - Google Cloud secured a $10 billion deal with Meta and Wells Fargo, highlighting the positive momentum in AI infrastructure and its silicon strategy [4] - The emergence of AI-native tools like ChatGPT and Atlas is beginning to divert search queries away from Google, potentially impacting its traditional revenue model [5][6] - Despite raising cost per click to meet revenue goals, there is a pressing need for Google to adapt its monetization strategy to incorporate AI [6] Market Dynamics - The competitive landscape is shifting, with new entrants challenging Google's market position, although Chrome's desktop market share has reportedly increased since May [7]

Core Insights - Alphabet is positioned for continued growth due to advancements in artificial intelligence enhancing its Search business and preparing its Cloud platform for acceleration with new data center capacity [1] Group 1: Stock Performance and Analyst Outlook - JMP Securities analyst Andrew Boone reiterated a Market Outperform rating for Alphabet with a price forecast of $290 [2] - Boone noted that Alphabet's stock has significant room for growth, even after a 70% surge in the last six months, attributing this potential to AI advancements [3] - The analyst predicts strong third-quarter 2025 results that will exceed consensus estimates [3] Group 2: Search Division and User Engagement - Boone argues that Google's Search division remains healthy, with AI Overviews driving greater query growth and outperforming ChatGPT in commercial queries [4] - Increased user visits and app sessions indicate that AI is expanding the search market by better understanding user intent beyond simple keywords [4] Group 3: Cloud Business and Revenue Projections - Optimism surrounds Google Cloud, expected to boost 2026 revenue estimates due to substantial data center capacity coming online by 2025 [5] - Google's custom silicon (TPUs) and vertical integration provide a cost advantage, allowing it to capture a larger share of cloud budgets from top AI labs and startups [5] - The market perception of Google has shifted from an "AI loser" to an "AI winner" over the past six months [5] Group 4: Future Developments and Earnings Estimates - The anticipated release of Google's next-generation model, Gemini 3.0, by 2025 is expected to provide additional momentum [6] - Current earnings estimates for Google are considered conservative compared to peers like Meta Platforms Inc [6] - Boone projects third-quarter revenue of $100.06 billion and EPS of $2.30 [6]

Core Insights - Alphabet Inc. has a historical precedent for rapid share price appreciation, with notable rallies exceeding 30% in under two months and a rare surge of over 50% in 2025, indicating strong potential for high-velocity gains when business catalysts align [2] Financial Performance - Google Cloud demonstrated operational efficiency in Q2 2025, with revenue increasing by 32% to $13.6 billion and operating income more than doubling to $2.83 billion, resulting in a segment margin of 20.7% [5] - AI initiatives, including platforms like Gemini, are expected to drive strong revenue growth, complementing the cloud growth and building on the 32% revenue increase seen in Google Cloud [5] - YouTube's ad revenue grew by 13% year-over-year to $9.8 billion in Q2 2025, surpassing market estimates, with the platform capturing over 12.8% of total U.S. TV viewing [5]

Core Insights - Wedgewood Partners reported a net return of 5.9% for its Composite in Q3 2025, underperforming compared to the S&P's 8.1%, Russell 1000 Growth Index's 10.5%, and Russell 1000 Value Index's 5.3% returns [1] - AI stocks continue to dominate discussions on Wall Street during the third quarter of 2025 [1] Company Highlights - Alphabet Inc. (NASDAQ:GOOG) was highlighted as a top contributor to Wedgewood's portfolio performance, driven by strong growth in its advertising and cloud computing businesses due to AI initiatives [3] - Alphabet's stock experienced a one-month return of -0.40% but gained 50.67% over the last 52 weeks, closing at $251.34 per share with a market capitalization of $3.07 billion on October 21, 2025 [2] - The company's core Google search business saw a 12% increase in revenues, aided by the new "AI Overviews" feature, which reaches over 2 billion users [3]

Core Insights - Wedgewood Partners' third-quarter 2025 investor letter highlights the ongoing popularity of AI stocks on Wall Street, with the Wedgewood Composite's net return at 5.9%, underperforming compared to the S&P's 8.1% and Russell 1000 Growth Index's 10.5% [1] Group 1: Meta Platforms, Inc. (NASDAQ:META) - Meta Platforms, Inc. reported a one-month return of -3.60% but a 52-week gain of 30.08%, with a stock price of $733.27 and a market capitalization of $1.801 trillion as of October 21, 2025 [2] - The company has significantly expanded its data center footprint, finishing 2024 with over $200 billion in gross property, plant, and equipment, an increase of $135 billion from five years prior [3] - Meta's annual gross cash flows increased from $29 billion in 2019 to $82 billion in 2024, demonstrating the effectiveness of its capital expenditures [3] - Meta is recognized as a major player in the AI space, having developed PyTorch, a key software library used in AI labs, and is considered to have a low valuation multiple [4] - In Q2 2025, Meta reported revenue of $47.5 billion, reflecting a 22% increase, and was held by 260 hedge fund portfolios, down from 273 in the previous quarter [4]

Core Insights - Alphabet Inc. is a leading multinational technology holding company with a market cap of $3.1 trillion, involved in various sectors including internet search, digital advertising, cloud computing, and AI [1] - The company is set to announce its fiscal Q3 2025 earnings on October 29, with analysts predicting a profit of $2.27 per share, a 7.1% increase from the previous quarter [2] - For fiscal 2025, Alphabet's EPS is expected to reach $9.93, marking a 23.5% increase from $8.04 in fiscal 2024, with further growth anticipated in fiscal 2026 [3] Stock Performance - Alphabet's stock has increased by 51.6% over the past 52 weeks, outperforming the S&P 500 Index's 15.1% return and the Communication Services Select Sector SPDR Fund's 28.4% rise [4] - The stock's upward trend is attributed to investor optimism and a favorable U.S. antitrust ruling that alleviated concerns about potential regulatory actions [5] Growth Prospects - There is growing optimism regarding Alphabet's potential in cloud computing and AI, driven by rising demand for its cloud services and the integration of AI across its product offerings [6] - Wall Street analysts maintain a positive outlook on Alphabet's stock, with a "Strong Buy" rating from 42 out of 56 analysts, and a mean price target of $258.96 indicating a modest upside potential of 3% [7]