Wedgewood Partners: “Tractor Supply (TSCO) is an Exceptional Retailer”

Wedgewood Partners, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For calendar 2021, a portfolio net return of +32.1% was recorded by the fund, outperforming the S&P 500 Index that delivered a +28.7% return for the same period, and the +27.6% gain of the Russell 1000 Growth Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Wedgewood Partners, in its Q4 2021 investor letter, mentioned Tractor Supply Company (NASDAQ: TSCO) and discussed its stance on the firm. Tractor Supply Company is a Brentwood, Tennessee-based retail chain company with a $25.2 billion market capitalization. TSCO delivered a -7.20% return since the beginning of the year, while its 12-month returns are up by 40.61%. The stock closed at $221.43 per share on January 18, 2022.

Here is what Wedgewood Partners has to say about Tractor Supply Company in its Q4 2021 investor letter:

“Tractor Supply contributed favorably to performance during the quarter. Demand from the Company’s niche, affluent rural customer base continues to surge in a post-COVID world with comparable store sales running over +40% higher compared to pre-pandemic (2019) levels. Tractor Supply is seeing growth across all channels, from its website to e-commerce that is fulfilled by its 2000-store fleet to regular in-store traffic. The Company is also managing inflation and supply chain disruptions extremely well, passing through nearly +7% of inflation on consumable goods and managing a quarterly inventory in-stock rate that was actually higher than pre-pandemic. Tractor Supply is an exceptional retailer, and we continue to hold it as a top position.”

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Our calculations show that Tractor Supply Company (NASDAQ: TSCO) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TSCO was in 33 hedge fund portfolios at the end of the third quarter of 2021, compared to 38 funds in the previous quarter. Tractor Supply Company (NASDAQ: TSCO) delivered an 8.28% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on TSCO in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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