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 CDW Corporation (NASDAQ:CDW). CDW Corporation (NASDAQ:CDW) is an information technology (IT) solutions company that operates through its Commercial, Government, and Education segments. On July 17, 2026, CDW Corporation (NASDAQ:CDW) closed at $133.24 per share. One-month return of CDW Corporation (NASDAQ:CDW) was 7.83%, and its shares lost 24.67% over the past 52 weeks. CDW Corporation (NASDAQ:CDW) has a market capitalization of $17.02 billion.
L1 Capital International Fund stated the following regarding CDW Corporation (NASDAQ:CDW) in its Q2 2026 investor update:
"CDW Corporation (NASDAQ:CDW) is a leading provider of products and solutions in the information technology (IT) industry in North America and the U.K. It acts as a value-added reseller for many of the leading IT businesses. Management is executing solidly in subdued market conditions. Most of the AI implications for CDW are second-order. For example, clients may spend less on the products and solutions sold by CDW and more on AI-centric solutions.
We divested CDW to fund larger investments in several high-quality businesses that are not AI sensitive and trading below our assessed fair value, thus offering a compelling investment opportunity particularly for investors who are less driven by short term momentum and have a longer-term investment horizon. Examples include American Express, Apollo Group, Danaher, HCA and ICE."
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