Pool Stock Is Down 35% This Past Year, and One Fund Recently Disclosed Dumping a $10 Million Stake
Key Points
Wedgewood Partners exited its entire stake in Pool Corp during the fourth quarter, reducing holdings by 32,322 shares.
The quarter-end position value declined by $10.02 million as a result.
Pool previously accounted for 1.8% of fund AUM in the prior quarter.
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Wedgewood Partners sold out its position in Pool Corporation (NASDAQ:POOL), divesting 32,322 shares previously worth $10.02 million, according to a February 17, 2026, SEC filing.
What happened
According to the SEC filing dated February 17, 2026, Wedgewood Partners eliminated its entire position in Pool Corporation during the fourth quarter, selling all 32,322 shares. The quarter-end position value decreased by $10.02 million.
What else to know
- Top holdings after the filing:
- NYSE: TSM: $56.12 million (10.5% of AUM)
- NASDAQ: GOOGL: $51.30 million (9.6% of AUM)
- NASDAQ: META: $45.64 million (8.5% of AUM)
- NASDAQ: AAPL: $38.85 million (7.3% of AUM)
- NASDAQ: MSFT: $37.48 million (7.0% of AUM)
- As of February 17, 2026, shares of Pool were priced at $255.46, down 24.4% over the past year and underperforming the S&P 500 by 36.5 percentage points. As of Friday morning, they’re down even more, some 35% this past year.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2/17/26) | $255.46 |
| Market Capitalization | $9 billion |
| Revenue (TTM) | $5.29 billion |
| Net Income (TTM) | $412.12 million |
Company snapshot
- Pool Corporation distributes swimming pool supplies, equipment, maintenance products, and related outdoor leisure items, including chemicals, replacement parts, and building materials.
- The firm operates a business-to-business distribution model, generating revenue through wholesale sales to pool builders, remodelers, specialty retailers, and service professionals.
- It serves a primary customer base of swimming pool professionals, specialty retailers, irrigation and landscape contractors, and commercial clients such as hotels and community facilities.
Pool Corporation distributes swimming pool supplies, equipment, and related leisure products, with operations across North America, Europe, and Australia. The company leverages an extensive sales center network and deep supplier relationships to deliver a comprehensive product portfolio to professional customers.
What this transaction means for investors
Pool just put up $5.3 billion in 2025 sales, down slightly year over year, with gross margin steady at 29.7%. Diluted EPS fell 4% year over year to $10.85, and management is guiding to $10.85 to $11.15 for 2026.
To be clear, that’s not a business in free fall, but it does seem like a distributor navigating a normalization phase after pandemic-era demand pulled forward years of growth. Operating income dipped to $580.2 million from $617.2 million, while operating cash flow fell to $365.9 million as inventory built ahead of price increases.
In a portfolio dominated by mega-cap technology names like TSMC, Alphabet, and Microsoft, this was a cyclical, niche distributor. Selling it cleans up style drift and reinforces a preference for secular compounders over weather-sensitive operators.
For long-term investors, the question is less about one quarter and more about housing turnover, backyard renovation trends, and margin resilience. If discretionary demand stabilizes, Pool’s scale and 456 sales centers provide leverage. If not, patience may be required.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Pool. The Motley Fool has a disclosure policy.
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