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 Salesforce, Inc. (NYSE:CRM). Salesforce, Inc. (NYSE:CRM) offers Customer Relationship Management (CRM) technology that brings companies and customers together. The one-month return for Salesforce, Inc. (NYSE:CRM) was -7.09%, and its shares lost 25.13% of their value over the last 52 weeks. On January 14, 2026, Salesforce, Inc. (NYSE:CRM) stock closed at $239.57 per share, with a market capitalization of $228.071 billion.
L1 Capital International Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its fourth quarter 2025 investor letter:
“During the December 2025 quarter, we initiated a position in Salesforce, Inc. (NYSE:CRM). Salesforce is the global leader in customer relationship management software and over the past 25 years has built a highly profitable, high-quality business exemplifying the barriers to competition just outlined. However, a combination of AI-related concerns and natural growth moderation as the business has scaled saw Salesforce’s share price fall more than 35% from its late-2024 peak, leaving it trading at levels last seen five years ago. We expect Salesforce to deliver high single digit revenue growth over the medium term, and earnings per share growth in the teens. We invested at the lower end of our assessed fair value range and view Salesforce as offering an attractive risk-adjusted return opportunity and would look to further increase the position on additional share price weakness.”
Salesforce, Inc. (NYSE:CRM) is in the 16th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 119 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the third quarter, compared to 121 in the previous quarter. In the third quarter of 2026, Salesforce, Inc. (NYSE:CRM) reported revenue of $10.26 billion, reflecting an increase of 9% year over year and 8% in constant currency. While we acknowledge the risk and potential of Salesforce, Inc. (NYSE:CRM) 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 Salesforce, Inc. (NYSE:CRM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Salesforce, Inc. (NYSE:CRM) and shared the list of must-watch AI stocks on Wall Street. Artisan Value Fund added Salesforce, Inc. (NYSE:CRM) to its portfolio in Q3 2025, for its strong cash flow, solid balance sheet, and reasonable valuation. 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.
