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 Visa Inc. (NYSE:V). Visa Inc. (NYSE:V) is a leading financial technology company that operates electronic payment networks. On April 15, 2026, Visa Inc. (NYSE:V) closed at $315.91 per share. One-month return of Visa Inc. (NYSE:V) was 5.41%, and its shares lost 4.16% over the past 52 weeks. Visa Inc. (NYSE:V) has a market capitalization of $609.09 billion.
L1 Capital International Fund stated the following regarding Visa Inc. (NYSE:V) in its Q1 2026 investor letter:
“Mastercard and Visa Inc. (NYSE:V) 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.”
Visa Inc. (NYSE:V) ranks 9th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 184 hedge fund portfolios held Visa Inc. (NYSE:V) at the end of the fourth quarter, up from 179 in the previous quarter. While we acknowledge the potential of Visa Inc. (NYSE:V) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Visa Inc. (NYSE:V) and shared the list of best S&P 500 stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
