Here’s Why L1 Capital Trimmed its Intuit (INTU) Stake

L1 Capital, an investment management firm, published its ‘L1 Capital International Fund’ fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly net return of 6.2 % was recorded by the fund for the fourth quarter of 2021, underperforming its benchmark by -0.9%. The benchmark meanwhile had a 7.1% gain for the same period. The Australian dollar appreciated 0.5% against the U.S. dollar and 2.4% against the Euro, detracting from reported Fund and benchmark returns. For the 2021 calendar year, the Fund returned 41.1% (net of fees), outperforming the benchmark by 11.9%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

L1 Capital International Fund, in its Q4 2021 investor letter, mentioned Intuit Inc. (NASDAQ: INTU) and discussed its stance on the firm. Intuit Inc. is a Mountain View, California-based software company with a $151.7 billion market capitalization. INTU delivered a -16.70% return since the beginning of the year, while its 12-month returns are up by 29.43%. The stock closed at $535.81 share on February 11, 2022.

Here is what L1 Capital International Fund has to say about Intuit Inc.  in its Q4 2021 investor letter:

“We trimmed our investment in Intuit following a period of strong share price performance. Our decision to reduce the size of Intuit’s position in the portfolio was solely due to our views on Intuit’s valuation relative to alternative investment opportunities, and reflects our valuation discipline, even for Quality 1 rated businesses. We would welcome the opportunity to increase our investment in Intuit should the share price fall further from current levels.”

Our calculations show that Intuit Inc. (NASDAQ: INTU) ranks 4th on our list of the 30 Most Popular Stocks Among Hedge Funds. INTU was in 64 hedge fund portfolios at the end of the third quarter of 2021, compared to 66 funds in the previous quarter. Intuit Inc. (NASDAQ: INTU) delivered a -14.54% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.