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Here’s Why Motorola (MSI) Continues to be a Top Holding of Wedgewood Partners

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Jose Karlo Mari Tottoc
·3 min read
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Wedgewood Partners, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of +4.8% was reported by the fund for the Q1 of 2021, outperforming its Russell 1000 Growth benchmark that delivered a 1% return, but below both the S&P 500 and Russell 1000 Value Index that had a 6.2% and 11.3% gains in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Wedgewood Partners, in their Q1 2021 investor letter, mentioned Motorola Solutions, Inc. (NYSE: MSI) and shared their insights on the company. Motorola Solutions, Inc. is a Chicago, Illinois-based communications equipment company that currently has a $31.7 billion market capitalization. Since the beginning of the year, MSI delivered a 10.17% return, extending its 12-month gains to 26.06%. As of April 14, 2021, the stock closed at $187.35 per share.

Here is what Wedgewood Partners has to say about Motorola Solutions, Inc. in their Q1 2021 investor letter:

"Motorola Solutions saw a rebound in orders back to record levels in its North American Land Mobile Radio (LMR) business – where it enjoys a virtual monopoly – along with double-digit operating earnings growth in its software and services segment. COVID-19 posed some temporary challenges to Motorola’s selling organization; however, public service demand for more sophisticated and flexible emergency video and communications solutions stayed strong. The Company is capable of generating double-digit top-line growth as new federal spending should help expand state and local communication budgets. Despite a considerably better funding backdrop for Motorola’s largest customers, the stock trades at a multiple not too different compared to when things were not nearly as optimistic. As a result, Motorola continues to be a top holding (number 3) in our portfolio."

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motorola, smart, cell, google, dish, business, sign, marquee, digital, technology, computer, hightech, mobile, web, electronic, device, wireless, logo, network, valley,

Ken Wolter / Shutterstock.com

Our calculations show that Motorola Solutions, Inc. (NYSE: MSI) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Motorola Solutions, Inc. was in 35 hedge fund portfolios, compared to 29 funds in the third quarter. MSI delivered a 7.62% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

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