L1 Capital, an investment management firm, has published its investor letter for the fourth quarter of 2025 concerning its L1 Capital International Fund. The document outlines the fund's performance, positioning, and recent portfolio adjustments. For the quarter ending December 2025, the fund returned 2.2% after fees, while its benchmark, the MSCI World Net Total Return Index in AUD, returned 2.5%. Over the full year 2025, the fund's net return was 9.8%, compared to the index's 12.4%.
The letter specifically highlighted the fund's new investment in Salesforce, Inc. (NYSE:CRM). The firm described Salesforce as the global leader in customer relationship management software. According to the letter, Salesforce's share price had fallen more than 35% from a late-2024 peak, trading at levels not seen in five years. The fund attributed this decline to AI-related concerns and a natural moderation in growth as the business scaled.
In the letter, L1 Capital International Fund stated: "During the December 2025 quarter, we initiated a position in Salesforce, Inc. (NYSE:CRM). Salesforce is the global leader in customer relationship management software and over the past 25 years has built a highly profitable, high-quality business exemplifying the barriers to competition just outlined. However, a combination of AI-related concerns and natural growth moderation as the business has scaled saw Salesforce’s share price fall more than 35% from its late-2024 peak, leaving it trading at levels last seen five years ago. We expect Salesforce to deliver high single digit revenue growth over the medium term, and earnings per share growth in the teens. We invested at the lower end of our assessed fair value range and view Salesforce as offering an attractive risk-adjusted return opportunity and would look to further increase the position on additional share price weakness."
Salesforce stock closed at $239.57 per share on January 14, 2026, giving the company a market capitalization of $228.071 billion. Its one-month return was -7.09%, and it lost 25.13% of its value over the preceding 52 weeks. The firm's strategy focuses on investing in companies with favorable cashflow-based valuations, and it considers valuation analysis essential for potential AI-focused investments.
According to a separate database, 119 hedge fund portfolios held Salesforce at the end of the third quarter of 2026, down from 121 in the prior quarter. The company reported third-quarter 2026 revenue of $10.26 billion, an increase of 9% year-over-year.