L1 Capital, an investment management firm, released its “L1 Capital International Fund” (unhedged) fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Strategy emphasizes investments in high-quality companies with positive cash flow valuations. The letter discusses the current investment environment, the Fund’s positioning, portfolio changes, and the quarterly review. For the March 2026 quarter, the fund returned -13.1% (net of fees), trailing the benchmark’s -6.1% (MSCI World Net Total Return Index in AUD) return. The underperformance was attributed to a lack of energy exposure, share price declines in high-quality firms, and market preference for short-term gainers. In addition, you can check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, L1 Capital International Fund highlighted stocks like Alphabet Inc. (NASDAQ:GOOGL). Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, offers various platforms and services, including online search and advertising, cloud solutions, and artificial intelligence, and is a significant contributor to the Strategy’s performance. On April 15, 2026, Alphabet Inc. (NASDAQ:GOOGL) stock closed at $337.12 per share. One-month return of Alphabet Inc. (NASDAQ:GOOGL) was 9.76%, and its shares gained 123.02% over the past 52 weeks. Alphabet Inc. (NASDAQ:GOOGL) has a market capitalization of $4.08 trillion.
L1 Capital International Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q1 2026 investor letter:
Portfolio adjustments during the March 2026 quarter were relatively modest, but deliberate. We trimmed investments in AerCap, Alphabet Inc. (NASDAQ:GOOGL), HCA Healthcare and Weir Group at prices around the top end of our assessed fair value range, with all of these businesses benefitting from positive sentiment intra-quarter. Alphabet’s share price has more than doubled over the past 12 months. This reflects strong performance in core Search, continued momentum in Google Cloud Platform, and better-than-expected progress in AI (Gemini). Today Alphabet has a market capitalisation approaching US$4 trillion. Share prices and fair value are not always aligned, even for the world’s largest companies.
Alphabet Inc. (NASDAQ:GOOGL) ranks third on our list of 40 Most Popular Stocks Among Hedge Funds. As per our database, 288 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOGL) at the end of the fourth quarter which was 243 in the previous quarter. In 2025, Alphabet Inc. (NASDAQ: GOOGL) achieved its first-ever $400 billion annual revenue. While we acknowledge the risk and potential of Alphabet Inc. (NASDAQ:GOOGL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Alphabet Inc. (NASDAQ:GOOGL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Alphabet Inc. (NASDAQ:GOOGL) and shared the list of best stocks to buy according to AI bull Brad Gerstner. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
