L1 Capital, an investment management firm, has released its fourth-quarter 2025 investor letter for the L1 Capital International Fund. The document details the fund's performance, positioning, and portfolio adjustments for the period ending December 2025.
The fund returned 2.2% net of fees for the quarter, compared to a 2.5% return for its benchmark, the MSCI World Net Total Return Index in AUD. For the full year 2025, the fund returned 9.8% net of fees, while the index returned 12.4%.
In the letter, the firm emphasized that valuation analysis remains essential for potential investments in artificial intelligence companies. The strategy focuses on investing in high-quality companies with favorable cashflow-based valuations.
The investor letter specifically highlighted AerCap Holdings N.V. (NYSE:AER), a company engaged in the lease, financing, sale, and management of flight equipment. On January 14, 2026, AerCap stock closed at $141.84 per share. The stock showed a one-month return of -1.02% and a 52-week gain of 48.04%. AerCap has a market capitalization of $25.48 billion.
Regarding AerCap Holdings, L1 Capital International Fund stated: "We have referenced AerCap Holdings N.V. (NYSE:AER) extensively in prior reports, with a full write-up in the June 2024 Quarterly Report. The business continues to perform strongly, ahead of our base case, benefitting from a structural shortage of aircraft and aircraft engines, ongoing benefits from the highly value accretive acquisition of GE Capital Aviation Services in 2021, insurance recoveries after aircraft losses incurred when Russia invaded Ukraine, and ongoing prudent capital allocation. Following AerCap's more than 50% share price appreciation during 2025, AerCap is now trading within our assessed fair value range. While AerCap remains the Fund's largest position, we have slightly trimmed the investment for valuation and risk management reasons."
According to database information, 55 hedge fund portfolios held AerCap Holdings at the end of the third quarter, compared to 63 in the previous quarter. The company is not included on a list of 30 most popular stocks among hedge funds.