L1 Capital, an investment management firm, released its “L1 Capital International Fund” (unhedged) second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The letter discusses the current investment environment as a ‘two-speed’ but resilient global economy, accompanied by an uncertain future. The letter explores the potential of an AI bubble, distinguishing between strong fundamentals and speculative momentum. Additionally, the market displays a ‘narrow’ character, marked by high exuberance and pronounced over-pessimism. Against this backdrop, the Fund returned +2.6% (net of fees) during the June 2026 quarter, compared to the benchmark return of +12.5% (all in A$). The underperformance was driven more by which investments were not held in the Fund. The Fund remains focused on quality, valuation and the avoidance of permanent capital loss, and believes the portfolio is positioned to deliver attractive risk-adjusted returns for patient investors. In addition, you can check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, L1 Capital International Fund highlighted AerCap Holdings N.V. (NYSE:AER). AerCap Holdings N.V. (NYSE:AER) is a leading aviation leasing company headquartered in Dublin, Ireland. On July 17, 2026, AerCap Holdings N.V. (NYSE:AER) closed at $146.97 per share, reflecting a market capitalization of $23.18 billion. AerCap Holdings N.V. (NYSE:AER) posted a one-month return of 0.08%, while its shares gained 33.08% over the past 52 weeks.
L1 Capital International Fund stated the following regarding AerCap Holdings N.V. (NYSE:AER) in its Q2 2026 investor update:
“AerCap Holdings N.V. (NYSE:AER), the world’s largest aircraft and aircraft engine lessor, continues to benefit from strong demand and constrained supply across both aircraft and engines. Higher fuel prices associated with the Middle East conflict have contributed to some adjustment in airline capacity and increased pressure on weaker carriers, but we do not expect this to materially negatively impact AerCap and may present opportunities for AerCap’s nimble management team. We expect another quarter of strong financial results and elevated buyback activity. Although upside is more modest following recent share price appreciation, AerCap remains a high-quality compounder capable of creating significant shareholder value through sustained financial performance and disciplined capital allocation.”
AerCap Holdings N.V. (NYSE:AER) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 56 hedge fund portfolios held AerCap Holdings N.V. (NYSE:AER) at the end of the first quarter, up from 54 in the previous quarter. While we acknowledge the risk and potential of AerCap Holdings N.V. (NYSE:AER) 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 AerCap Holdings N.V. (NYSE:AER) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered AerCap Holdings N.V. (NYSE:AER) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 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.
