Do You Believe in the Growth Potential of Motorola (MSI)?

Wedgewood Partners, an investment management company, released its fourth-quarter 2025 investor letter. The firm anticipates stronger market volatility in the coming years and has moderated its enthusiasm. A copy of the letter can be downloaded here. The Wedgewood Composite returned -1.8% (net) in the fourth quarter compared to the S&P 500’s 2.7%, the Russell 1000 Growth Index’s 1.1%, and the Russell 1000 Value Index’s 3.8% returns. YTD, the Composite gained 4.3% compared to 17.9%, 18.6%, and 15.9% returns for the indexes, respectively. Wedgewood Partners’ focus on high-quality stocks has historically worked since 1992, but not in 2025. The letter highlighted poor stock selection, the portfolio’s strong past performers due for valuation correction, and being structurally underweight in AI stocks drove the underperformance. The letter noted that in 2026, crowded AI investments and stretched valuations create pressure on prudent investment decisions.  In addition, you can check the Fund’s top 5 holdings to determine its best picks for 2025.

In its fourth-quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as Motorola Solutions, Inc. (NYSE:MSI). Motorola Solutions, Inc. (NYSE:MSI) is a public safety and enterprise security solutions provider. The one-month return for Motorola Solutions, Inc. (NYSE:MSI) was 7.49%, and its shares lost 13.82% over the last 52 weeks. On January 16, 2026, Motorola Solutions, Inc. (NYSE:MSI) stock closed at $400.61 per share, with a market capitalization of $66.743 billion.

Wedgewood Partners stated the following regarding Motorola Solutions, Inc. (NYSE:MSI) in its fourth quarter 2025 investor letter:

"Although Motorola Solutions, Inc. (NYSE:MSI) grew its revenues +8% and grew earnings per share +9%, and expects to see similar growth in 2026, despite the headwinds of a government shutdown and dilution from their acquisition of aerial drone communications provider, Silvus Technologies, the stock was a poor performer in 2025. However, we expect to see accelerating growth into 2026 as organic orders have accelerated to double-digits in both products and services. As the stock sold off during the quarter, it traded to what were more attractive relative and historical forward price to earnings multiples; accordingly, we added to positions."

Motorola Solutions, Inc. (NYSE:MSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Motorola Solutions, Inc. (NYSE:MSI) at the end of the third quarter, which was 55 in the previous quarter. While we acknowledge the potential of Motorola Solutions, Inc. (NYSE:MSI) 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 Motorola Solutions, Inc. (NYSE:MSI) and shared the list of best technology stocks that pay dividends. In addition, please check out our hedge fund investor letters Q4 2025 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.