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L1 Capital Reaffirms Jacobs, Adds to Stake After Rival’s AI Remarks

L1 frames the PA Consulting buyout as a small valuation positive.

Overview

  • In its Q4 2025 letter, L1 Capital said Jacobs Solutions continues to meet expectations and should be a net beneficiary of AI, with management already investing in the technology.
  • The fund said a competitor’s CEO materially mis-spoke about AI disruption at an investor event, viewed the ensuing share weakness as unwarranted, and moderately increased its Jacobs position.
  • After the quarter closed, Jacobs acquired the minority interests in PA Consulting at a price modestly below L1’s expectations, which the fund called well signalled and strategically sound.
  • L1 reported a 2.2% net return for the quarter versus 2.5% for the MSCI World benchmark, and a 9.8% net return for 2025 versus 12.4% for the index.
  • Jacobs shares closed at $139.00 on January 14, 2026 for a $16.506 billion market cap, and Insider Monkey counted 34 hedge fund holders at Q3, down from 35 and not among its 30 most popular stocks.