Fastenal Company: Wedgewood Capital Views Company As ‘High-Quality Growth Business’

Wedgewood Capital is bullish on Fastenal Company (Nasdaq:FAST), a Minnesota-based firm engaged in the wholesale distribution of industrial and construction supplies. The fund views the firm as “a high-quality growth business” that is benefiting from the long-term renaissance in U.S. manufacturing and energy production. At the same time, the fund believes that Fastenal is gaining share in the highly-fragmented industry from a variety of competitors.

Fastenal Company is a popular stock among hedge funds tracked by Insider Monkey. At the end of the second quarter this year, 28 funds held shares of Fastenal, compared to 22 funds at the end of the first quarter, according to our database.

During the third quarter, Wedgewood Capital upped its stake in Fastenal, among others. The investor discussed its investment thesis on Fastenal and seven other stocks in its 2017 Q3 investor letter (you can download a copy here). We’ve already covered Wedgewood’s investment theory on Alphabet and Cognizant Technology Solutions in other articles.