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 HCA Healthcare, Inc. (NYSE:HCA). HCA Healthcare, Inc. (NYSE:HCA) owns and operates hospitals and related healthcare entities. On April 15, 2026, HCA Healthcare, Inc. (NYSE:HCA) closed at $488.58 per share. One-month return of HCA Healthcare, Inc. (NYSE:HCA) was -2.22%, and its shares gained 45.84% over the past 52 weeks. HCA Healthcare, Inc. (NYSE:HCA) has a market capitalization of $109.26 billion.
L1 Capital International Fund stated the following regarding HCA Healthcare, Inc. (NYSE:HCA) in its Q1 2026 investor letter:
“Portfolio adjustments during the March 2026 quarter were relatively modest, but deliberate. We trimmed investments in AerCap, Alphabet, HCA Healthcare, Inc. (NYSE:HCA) 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. HCA Healthcare, the leading U.S. provider of health care services through hospitals and outpatient facilities, also performed strongly, with the share price increasing more than 50% over the past year. Over this time, we have progressively reduced the Fund’s investment, and the company has moved from being one of the largest holdings in the Fund to one of the smallest. The decision to reduce the position size was based purely on valuation considerations.”
HCA Healthcare, Inc. (NYSE:HCA) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 74 hedge fund portfolios held HCA Healthcare, Inc. (NYSE:HCA) at the end of the fourth quarter, up from 73 in the previous quarter. In Q4 2025, HCA Healthcare, Inc. (NYSE:HCA) revenue increase 6.7% compared to Q4 2024. While we acknowledge the risk and potential of HCA Healthcare, Inc. (NYSE:HCA) 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 HCA Healthcare, Inc. (NYSE:HCA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered HCA Healthcare, Inc. (NYSE:HCA) and shared the list of stocks Jim Cramer discussed. 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.
