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Wedgewood Partners, an investment management company, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Wedgewood Composite returned -6.3% (net) in the first quarter compared to the S&P 500’s -4.3%, the Russell 1000 Growth Index’s -9.8%, and the Russell 1000 Value Index’s 2.1% returns. The letter mentioned the ongoing war, highlighting the swift response of financial and commodities markets to military strikes and geopolitical commentary. Historically, oil shocks have consistently displayed a significant influence on global financial markets.  In addition, please check the Fund’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Wedgewood Partners highlighted O’Reilly Automotive, Inc. (NASDAQ:ORLY) as a contributor to the portfolio's performance. O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a leading US-based automotive parts retailer. On April 28, 2026, O’Reilly Automotive, Inc. (NASDAQ:ORLY) stock closed at $91.57 per share. One-month return of O’Reilly Automotive, Inc. (NASDAQ:ORLY) was -0.58%, and its shares lost 2.94% over the past 52 weeks. O’Reilly Automotive, Inc. (NASDAQ:ORLY) has a market capitalization of $76.78 billion.

Wedgewood Partners stated the following regarding O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its Q1 2026 investor letter:

"O’Reilly Automotive, Inc. (NASDAQ:ORLY) helped performance this quarter, as earnings per share grew by +13%, driven by a +6% increase in same-store sales (comps), marking the Company's 33rd consecutive year of positive comp growth. The primary driver of O'Reilly's quarterly comp performance was its professional business, which grew by over +10%. This was partially aided by tariff-driven inflation, which the Company successfully passed through to customers. Weather did not play a significant role, making this quarter a clear indicator of the Company's underlying fundamentals. Despite higher gas prices late in the first quarter potentially dampening consumer sentiment, we expect O'Reilly to continue posting solid comp and earnings growth, as the vast majority of its revenues are non-discretionary."

O’Reilly Automotive, Inc. (NASDAQ:ORLY) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 69 hedge fund portfolios held O’Reilly Automotive, Inc. (NASDAQ:ORLY) at the end of the fourth quarter, compared to 75 in the previous quarter. While we acknowledge the potential of O’Reilly Automotive, Inc. (NASDAQ:ORLY) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered O’Reilly Automotive, Inc. (NASDAQ:ORLY) and shared TimesSquare Capital's views on the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.