Core Insights - Wedgewood Partners' third-quarter 2025 investor letter indicates that AI stocks continue to dominate Wall Street's interest, with the Wedgewood Composite achieving a net return of 5.9%, underperforming compared to the S&P's 8.1% and the Russell 1000 Growth Index's 10.5% [1] Company Summary: Microsoft Corporation (NASDAQ:MSFT) - Microsoft Corporation reported a one-month return of 1.47% and a 52-week gain of 21.92%, with its stock closing at $517.66 on October 21, 2025, and a market capitalization of $3.848 trillion [2] - The company has invested heavily in capital expenditures, adding over 2 gigawatts of data center capacity in the past year, resulting in gross property, plant, and equipment, and capitalized leases reaching nearly $370 billion, an increase of $260 billion since fiscal 2020 [3] - Gross cash flow has risen from $60 billion in 2020 to over $140 billion in 2025, indicating a consistent return on capital in the high 20s, which is considered an attractive return given the scale of investment [3] Market Position - Microsoft ranks second among the 30 Most Popular Stocks Among Hedge Funds, with 294 hedge fund portfolios holding its stock at the end of Q2 2025, up from 284 in the previous quarter [4] - In Q4 of fiscal year 2025, Microsoft reported revenue of $76.4 billion, marking an 18% increase, or 17% when adjusted for constant currency [4]

Core Insights - Victory Capital Holdings, Inc. (VCTR) reported assets under management (AUM) of $310.6 billion for September 2025, reflecting a 2.3% increase from August 31, 2025 [1][8] - The growth in AUM was primarily driven by an 8.6% increase in global/non-U.S. equity AUM and a 4.1% increase in Solutions assets [2][8] - VCTR's integrated multi-boutique business model and effective distribution platform are expected to enhance its performance in the near term [3][8] Asset Class Performance - U.S. mid-cap equity AUM decreased marginally to $31.9 billion [1] - U.S. small-cap equity AUM declined 1.6% to $12.7 billion [1] - U.S. large-cap equity AUM increased 1.9% to $63.1 billion [1] - Fixed-income AUM totaled $80.4 billion, showing a marginal increase [2] - Alternative investments asset balance decreased slightly to $3 billion [2] - Money market/short-term assets declined nearly 1% to $3.6 billion [2] Market Position and Performance - Over the past six months, VCTR shares gained 22.5%, outperforming the industry's growth of 17.9% [4] - Victory Capital currently holds a Zacks Rank 1 (Strong Buy) [5] Comparison with Other Asset Managers - Franklin Resources, Inc. (BEN) reported preliminary AUM of $1.66 trillion as of September 30, 2025, increasing nearly 1% from the prior month [6][9] - Invesco Ltd. (IVZ) reported AUM of $2,124.8 billion as of September 30, 2025, reflecting a 2.9% increase from the previous month [9][10]

Group 1: Market Overview - The market experienced volatility at the start of Q2 2025 due to heightened uncertainty from global tariffs, but later rebounded with a more lenient trade policy [1] - The composite returned 25.11% gross of fees and 24.85% net of fees in Q2 2025, outperforming the S&P Global 1200 Information Technology Index's return of 23.66% [1] Group 2: Microsoft Corporation Performance - Microsoft Corporation (NASDAQ:MSFT) reported a one-month return of 2.47% and a 52-week gain of 19.87%, with a stock price of $514.45 and a market capitalization of $3.824 trillion as of September 22, 2025 [2] - Microsoft’s quarterly results surprised to the upside, with shares surging over 30% during the period, driven by AI improvements and a strong partnership with OpenAI [3] - In Q4 FY 2025, Microsoft reported revenue of $76.4 billion, representing an 18% increase, or 17% when adjusted for constant currency [4] Group 3: Investment Sentiment - Microsoft is the second most popular stock among hedge funds, with 294 hedge fund portfolios holding the stock at the end of Q2 2025, up from 284 in the previous quarter [4] - Despite the positive outlook for Microsoft, there are suggestions that certain AI stocks may offer greater upside potential and carry less downside risk [4]

Group 1 - Victory Capital Holdings, Inc. (VCTR) reported assets under management (AUM) of $303.7 billion for August 2025, reflecting a 1.3% increase from July 31, 2025 [1][8] - The U.S. mid-cap equity AUM increased to $32.1 billion, while U.S. small-cap equity AUM rose 2.8% to $12.9 billion, and global/non-U.S. equity AUM increased 3.5% to $26.6 billion [1][8] - The U.S. large-cap equity AUM decreased marginally to $61.9 billion [1] Group 2 - Victory Capital recorded $83.5 billion in Solutions, up 3.2% from July 2025, with alternative investments increasing nearly 1% to $3 billion [2][8] - Fixed-income AUM totaled $79.9 billion, representing a marginal increase from July 2025, while money market/short-term assets declined to $3.6 billion [2] Group 3 - The integrated multi-boutique business model of VCTR is well-positioned in a fast-expanding market, which is expected to enhance its performance in the near term [3] Group 4 - Over the past six months, VCTR shares have gained 19.9%, outperforming the industry's growth of 13.9% [4] Group 5 - Victory Capital currently carries a Zacks Rank 3 (Hold) [5] Group 6 - Franklin Resources, Inc. (BEN) reported preliminary AUM of $1.64 trillion as of August 31, 2025, which increased 1.7% from the prior month [6][9]

Core Insights - Victory Capital Holdings, Inc. (VCTR) reported assets under management (AUM) of $299.8 billion for July 2025, reflecting a marginal increase from June 30, 2025 [1][8] - The U.S. mid-cap equity AUM increased by 1% to $31.9 billion, while U.S. small-cap equity AUM declined by 4.4% to $12.6 billion [1][8] - The global/non-U.S. equity AUM rose slightly to $25.8 billion, and U.S. large-cap equity AUM increased marginally to $62.3 billion [1][8] Asset Class Performance - Victory Capital recorded $80.8 billion in Solutions, up 1.1% from June 2025 [2] - Alternative investments asset balance increased slightly to $2.9 billion, while fixed-income AUM totaled $79.7 billion, showing a marginal decrease [2] - Money market/short-term assets rose by 2.3% to $3.7 billion [2] Business Model and Market Position - The strong positioning of VCTR's integrated multi-boutique business model in a fast-expanding market is expected to enhance its performance in the near term [3] Stock Performance - Over the past six months, VCTR shares have gained 3.7%, outperforming the industry's growth of 1.8% [4] Comparison with Other Asset Managers - Franklin Resources, Inc. (BEN) reported preliminary AUM of $1.62 trillion as of July 31, 2025, which increased slightly from the prior month [6] - Invesco (IVZ) reported AUM of $2,024.5 billion as of July 31, 2025, reflecting a 1.2% increase from the previous month [9]

Group 1: Company Performance - Victory Capital Holdings, Inc. (VCTR) reported assets under management (AUM) of $298.6 billion for June 2025, reflecting a 3.2% increase from May 31, 2025 [1][8] - U.S. large-cap equity AUM rose 4.9% to $61.8 billion, while U.S. mid-cap equity AUM increased 1.8% to $31.6 billion [1][8] - Solutions assets reached $79.9 billion, up 4.7% from May 2025, and fixed-income AUM totaled $79.7 billion, representing a 1% increase [2][8] Group 2: Market Positioning - The strong positioning of VCTR's integrated multi-boutique business model in a fast-expanding market is expected to boost its performance in the near term [3] - Over the past six months, VCTR shares have gained 29.9%, outperforming the industry's growth of 21.7% [4] Group 3: Comparison with Other Asset Managers - Franklin Resources, Inc. (BEN) reported preliminary AUM of $1.61 trillion as of June 30, 2025, which increased 2.1% from the prior month [7] - Invesco (IVZ) reported AUM of $2 trillion as of June 30, 2025, increasing 3% from the previous month, with strong market returns contributing to a $58 billion increase [9][10]

Group 1: Victory Capital Holdings, Inc. (VCTR) Performance - VCTR reported assets under management (AUM) of $175.5 billion for February 2025, reflecting a 0.6% decline from $176.5 billion as of January 31, 2024 [1] - U.S. mid cap equity AUM decreased 2.9% to $30.4 billion, while U.S. small cap equity AUM dipped 5.3% to $14.2 billion [1] - Global/non-U.S. equity AUM rose 5.8% to $20.6 billion, and U.S. large cap equity AUM decreased 3.7% to $13.9 billion [1] Group 2: Solutions and Alternative Investments - VCTR recorded $65.5 billion in Solutions, up 0.1% from January 2025 [2] - Alternative investments asset balance declined 2.6% to $2.9 billion, while fixed-income AUM was $24.4 billion, increasing marginally [2] - Money market/short-term assets rose 1.9% to $3.4 billion [2] Group 3: Market Positioning - VCTR's integrated multi-boutique business model and effective distribution platform are expected to enhance performance in the near term [3] Group 4: Performance of Other Asset Managers - Franklin Resources, Inc. (BEN) reported preliminary AUM of $1.58 trillion as of February 28, 2025, showing a marginal decrease [4] - BEN's decline in AUM was attributed to long-term net outflows of $10 billion, despite positive market impacts [4] - AllianceBernstein Holding L.P. (AB) announced preliminary AUM of $805 billion for February 2025, reflecting a marginal decrease [5] - AB's Equity AUM declined 2.6% to $333 billion, while Fixed-Income AUM increased 1.3% to $303 billion [5]