L1 Capital, an investment management firm, has released its fourth-quarter 2025 investor letter for the L1 Capital International Fund. The letter outlines the fund's performance and positioning.
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 the benchmark returned 12.4%.
In the letter, the firm highlighted Intercontinental Exchange, Inc. (NYSE:ICE) as a stock of note. Intercontinental Exchange is a financial services company providing market infrastructure, data services, and technology solutions. Its one-month return was 8.04%, and its shares gained 15.12% over the last 52 weeks. On January 14, 2026, its stock closed at $172.94 per share, with a market capitalization of $98.995 billion.
Regarding Intercontinental Exchange, the fund stated: "Software and Information Services are two other sectors where AI concerns are overly reflected in current share prices. Intercontinental Exchange, Inc. (NYSE:ICE) is a long-term holding and remains a top 10 position in the Fund. ICE’s share price has been under pressure, largely due to AI-related concerns. The share price has already recovered 15% from recent lows."
The firm considers valuation analysis essential for potential AI-focused investments, stating that conviction in AI alone is not enough for a successful outcome.