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 Mastercard Incorporated (NYSE:MA). Mastercard Incorporated (NYSE:MA) is a leading financial technology company that provides transaction processing and other payment-related products and services. On April 15, 2026, Mastercard Incorporated (NYSE:MA) closed at $519.96 per share. One-month return of Mastercard Incorporated (NYSE:MA) was 5.87%, and its shares gained 0.51% over the past 52 weeks. Mastercard Incorporated (NYSE:MA) has a market capitalization of $463.71 billion.
L1 Capital International Fund stated the following regarding Mastercard Incorporated (NYSE:MA) in its Q1 2026 investor letter:
“Mastercard Incorporated (NYSE:MA) and Visa remain two of the Fund’s largest holdings. Both businesses continue to deliver consistent financial performance, with double-digit earnings growth. Despite this, share prices have drifted over the past 12 months and underperformed the broader market, including a decline of more than 10% during the March quarter. This underperformance reflects concerns that emerging technologies – including agentic commerce, stablecoins and alternative payment rails – may disrupt the traditional payments ecosystem.”
Mastercard Incorporated (NYSE:MA) ranks 11th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 150 hedge fund portfolios held Mastercard Incorporated (NYSE:MA) at the end of the fourth quarter, up from 136 in the previous quarter. While we acknowledge the risk and potential of Mastercard Incorporated (NYSE:MA) 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 Mastercard Incorporated (NYSE:MA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Mastercard Incorporated (NYSE:MA) and shared the list of hedge fund favorites with strong setup in 2026. 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.
