Microsoft (MSFT) Remains a High-Quality AI Leader

Wedgewood Partners, an investment management company, released its third-quarter 2026 investor letter. The letter can be downloaded here. Wedgewood Composite delivered a net return of 2.5% in the quarter, compared to 2.3% for the Standard & Poor's 500 Index, 0.9% for the Russell 1000 Growth Index, and 2.6% for the Russell 1000 Value Index. Surging Treasury yields and macro headwinds have heavily pressured rate-sensitive stocks and market breadth, driving equal-weighted S&P 500 underperformance. However, AI resilience and mega-cap tech pushed the NASDAQ 100 to record highs.