L1 Capital has published the investor letter for its International Fund covering the fourth quarter of 2025. The document outlines the fund's performance and portfolio adjustments for the period ending December 2025.
The fund returned 2.2% net of fees for the quarter, compared to a benchmark return of 2.5%. For the full year 2025, it returned 9.8% net of fees, while its benchmark index returned 12.4%. The firm stated that 2025 was a strong year for global stock markets.
In the letter, L1 Capital highlighted its investment in HCA Healthcare, Inc. The company's stock closed at $478.84 per share on January 14, 2026. It had a one-month return of 2.63% and gained 54.74% over the last 52 weeks. HCA Healthcare has a market capitalization of $109.38 billion.
Regarding HCA Healthcare, the fund wrote: "At the start of 2025, the market was acutely concerned that healthcare policy under President Trump and the Republicans would significantly negatively impact private hospitals and outpatient service providers such as HCA Healthcare, Inc. compared to operating conditions since Obamacare and under President Biden. As outlined in the December 2024 Quarterly Report, during this period of overly negative sentiment we were increasing our investment in HCA and it became one of the Fund’s largest holdings. While there have been some adverse regulatory developments, the One Big Beautiful Bill Act also had several provisions that benefited HCA. Today, expectations for operating conditions are more balanced. HCA’s share price increased 55% during 2025 and we have progressively reduced the HCA position, with HCA now being one of the smallest Fund holdings."
The firm considers valuation analysis essential for potential AI-focused investments, stating that merely having conviction in AI is not enough to ensure a successful investment outcome.