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 Salesforce, Inc. (NYSE:CRM). Salesforce, Inc. (NYSE:CRM) is a cloud computing company that offers Customer Relationship Management (CRM) technology that brings companies and customers together. On July 17, 2026, Salesforce, Inc. (NYSE:CRM) closed at $170.77 per share. One-month return of Salesforce, Inc. (NYSE:CRM) was 13.76%, and its shares lost 34.89% over the past 52 weeks. Salesforce, Inc. (NYSE:CRM) has a market capitalization of $139.86 billion.
L1 Capital International Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q2 2026 investor update:
“Salesforce, Inc. (NYSE:CRM) is the clear leader in its software sub-segment, is well-managed and its business economics and financial position are strong. However, we think the implications of AI are significant for Salesforce, and management will need to respond with strong execution and adjustments to the current business model. We sold into a bounce in Salesforce’s share price and used the proceeds to fund the increased investment in Nvidia.”
Salesforce, Inc. (NYSE:CRM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 27 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the first quarter, up from 23 in the previous quarter. While we acknowledge the potential of Salesforce, Inc. (NYSE:CRM) 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.
