Intercontinental Exchange (ICE) Fell Due to AI-Related Concerns

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 focuses on investing in high-quality companies with favorable cashflow-based valuations. The letter highlighted the current investment environment, the Fund’s positioning, portfolio adjustments, and the quarterly (December) and yearly (2025) review. The firm considers valuation analysis essential for potential AI-focused investments; merely having conviction in AI isn’t enough to ensure a successful investment outcome. In general, 2025 was a strong year for all stock markets globally. The fund returned 2.2%, net of fees, compared to 2.5% for the benchmark (MSCI World Net Total Return Index in AUD). For the year, the fund returned 9.8% (net of fees) compared to 12.4% for the Index. In addition, you can check the Strategy’s top five holdings to know its best picks in 2025.

 In its fourth-quarter 2025 investor letter, L1 Capital International Fund highlighted stocks such as Intercontinental Exchange, Inc. (NYSE:ICE). Intercontinental Exchange, Inc. (NYSE:ICE) is a financial services company that offers market infrastructure, data services, and technology solutions for financial institutions, corporations, and government entities. The one-month return of Intercontinental Exchange, Inc. (NYSE:ICE) was 8.04%, and its shares gained 15.12% of their value over the last 52 weeks. On January 14, 2026, Intercontinental Exchange, Inc. (NYSE:ICE) stock closed at $172.94 per share, with a market capitalization of $98.995 billion.

L1 Capital International Fund stated the following regarding Intercontinental Exchange, Inc. (NYSE:ICE) in its fourth quarter 2025 investor letter:

“Software and Information Services are two other sectors where AI concerns are overly reflected in current share prices. Intercontinental Exchange, Inc. (NYSE:ICE) is a long-term holding and remains a top 10 position in the Fund. ICE’s share price has been under pressure, largely due to AI-related concerns. The share price has already recovered 15% from recent lows.”

Intercontinental Exchange, Inc. (NYSE:ICE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 82 hedge fund portfolios held Intercontinental Exchange, Inc. (NYSE:ICE) at the end of the third quarter, compared to 84 in the previous quarter. While we acknowledge the risk and potential of Intercontinental Exchange, Inc. (NYSE:ICE) 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 Intercontinental Exchange, Inc. (NYSE:ICE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Intercontinental Exchange, Inc. (NYSE:ICE) and shared Meridian Hedged Equity Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2025 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.