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L1 Capital Q3 Letters Show Rebalancing: Nvidia Initiated, HCA Trimmed, Resources Favored

Managers emphasize valuation discipline after AI-led market concentration.

Overview

  • L1 Capital International Fund returned 2.6% in Q3 2025 versus 6.1% for its MSCI World benchmark, acknowledging narrow market leadership.
  • The International strategy trimmed HCA Healthcare after strong gains, removing it from the top 10, and added to Intuit, Danaher, TSMC, and Uber with Intuit returning to top holdings.
  • The firm initiated a position in Nvidia after reassessing AI growth and profitability, saying a brief price pullback offered an acceptable entry point.
  • The L1 Long Short Fund rose 13.3% in Q3 and 28.7% year to date, supported by cyclicals and higher gold and copper prices, with Hudbay noted as a beneficiary of tighter copper supply.
  • The Long Short Fund highlighted NexGen’s Rook I Arrow project with a Canadian federal commission hearing expected to conclude in H1 2026 and pointed to CRH’s upgraded EBITDA guidance and U.S. infrastructure tailwinds.