L1 Capital, an investment management firm, has issued its investor letter for the fourth quarter of 2025 for the L1 Capital International Fund. The document outlines the fund's performance, positioning, and adjustments over the period.
In 2025, global stock markets performed strongly. The fund reported a net return of 2.2% for the quarter, compared to a benchmark return of 2.5%. For the full year, the fund returned 9.8% net of fees, while the index returned 12.4%.
The strategy focuses on investing in high-quality companies with favorable cashflow-based valuations. The firm emphasized that valuation analysis is essential for potential AI-focused investments, noting that conviction in AI alone does not guarantee successful outcomes.
Among the holdings highlighted in the letter is Uber Technologies, Inc. On January 14, 2026, Uber's stock closed at $84.65 per share. The stock had a one-month return of 6.96% and gained 26.31% over the past 52 weeks. With approximately 69.96 million shares outstanding, Uber's market capitalization stands at $177.47 billion.
In the letter, L1 Capital International Fund stated regarding Uber Technologies, Inc.: "Uber Technologies, Inc. is a ‘battleground’ company. Uber is clearly the leader in ridesharing and meal delivery networks in the U.S. and many markets globally today. Autonomous vehicles continue to gain traction, with Waymo, Tesla and Zoox at the forefront, and many other companies developing their own autonomous vehicle strategies. Uber is working with many of these companies and is well placed to maintain its central network role in a hybrid world of human-driven and autonomous vehicles. That said, we recognise the inherent uncertainties and view Uber as a higher-risk, higher-return investment opportunity. Accordingly, Uber remains a smaller position in the Portfolio and is not a top 10 holding."
According to database records, 143 hedge fund portfolios held Uber Technologies at the end of the third quarter, down from 152 in the previous quarter. Uber ranks 10th on a list of 30 most popular stocks among hedge funds.