Wedgewood Partners liquidated its entire $10 million holding in Pool Corporation (POOL) during the fourth quarter of 2025, according to recent regulatory filings. The exit marks a significant vote of no confidence from the investment firm, even as the swimming pool supplies distributor maintains solid operational metrics.
Pool's stock has experienced considerable weakness over the past 12 months, declining 35% as the company confronts a normalization of demand following the pandemic-driven boom in residential pool construction and maintenance. Despite this market headwind, the company reported 2025 revenue of $5.3 billion and maintained consistent gross margins of 29.7%, suggesting underlying business stability amid the sector pullback.
Wedgewood's decision to divest reflects a strategic reallocation toward secular growth technology companies rather than cyclical distribution businesses. The fund's exit underscores investor concern about Pool's growth trajectory and the sustainability of pandemic-era demand normalization, even as the company continues to generate substantial revenue and maintain profitability in the current operating environment.