L1 Capital International, an investment management company, released its second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned -10.1% net of fees in the second quarter compared to the benchmark return of -8.5%. Current macroeconomic issues and geopolitical situations affected the fund’s performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
L1 Capital International discussed stocks like Intuit Inc. (NASDAQ:INTU) in the second quarter investor letter. Headquartered in Mountain View, California, Intuit Inc. (NASDAQ:INTU) provides financial management products and services to individuals, small businesses, and accounting professionals. On September 6, 2022, Intuit Inc. (NASDAQ:INTU) stock closed at $418.76 per share. Intuit Inc. (NASDAQ:INTU) had a return of -12.41% for the past month and its shares lost 26.22% of their value in the last 52 weeks. Intuit Inc. (NASDAQ:INTU) has a market capitalization of $118.123 billion.
Here is what L1 Capital International specifically said about Intuit Inc. (NASDAQ:INTU) in its Q2 2022 investor letter:
“Intuit Inc. (NASDAQ:INTU) was featured in the September 2020 Quarterly Report. Subsequently, Intuit acquired Credit Karma (uses consumers’ financial information on a consent basis to provide improved financial outcomes) which has proven to be a home run acquisition, as well as Mailchimp (marketing solutions) which is still in its early days of integration. The core Quickbooks (small business accounting software and associated ecosystem) and TurboTax (software to self-file tax returns) businesses have exceeded our base case.
The U.S. small business accounting software market opportunity is over 10x the size of the Australian market yet is around one third as penetrated, providing and immensely long runway for future growth for Quickbooks, a business with around 90% market share in the U.S. and limited credible competition. TurboTax accounts for around 30% of all tax filings in the U.S. but less than 15% of total industry revenue, supporting double digit revenue growth potential for many years to come.
The Intuit share price has been on a volatile journey, rapidly increasing from the low US$300s to more than US$700. On the way up we reduced our investment at prices above what we considered fair value. With hindsight we should have sold completely. Intuit’s share price subsequently crashed along with all other technology businesses. While some reduction in the share price is justified, Intuit has become meaningfully oversold…” (Click here to read the full text)
Wright Studio/Shutterstock.com
Intuit Inc. (NASDAQ:INTU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the second quarter which was 82 in the previous quarter.
We discussed Intuit Inc. (NASDAQ:INTU) in another article and shared the top stock picks of Mika Toikka’s AlphaCrest Capital. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
