L1 Capital, an investment management firm, released its “L1 Capital International Fund” (unhedged) first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 0.1% (net of fees) in the March quarter surpassing the benchmark return by 2.6% (all in Australian dollars). The Australian dollar appreciated 1.0% against the U.S. dollar in the quarter and 3.4% against the Euro. During the first quarter of 2025, the market performance by sector was mixed. In addition, the letter discussed on trade deficits, Trump administration’s Reciprocal Tariffs, implications of Liberation Day and the shift in Trump’s trade policy and how the firm is managing the fund in this volatile environment. Please check the fund’s top five holdings to know its best picks in 2025.
In its first quarter 2025 investor letter, L1 Capital International Fund emphasized stocks such as Eagle Materials Inc. (NYSE:EXP). Eagle Materials Inc. (NYSE:EXP) is a heavy construction material and light building materials supplier. The one-month return of Eagle Materials Inc. (NYSE:EXP) was 1.51%, and its shares lost 15.05% of their value over the last 52 weeks. On April 10, 2025, Eagle Materials Inc. (NYSE:EXP) stock closed at $216.53 per share with a market capitalization of $7.208 billion.
L1 Capital International Fund stated the following regarding Eagle Materials Inc. (NYSE:EXP) in its Q1 2025 investor letter:
“In our December 2024 Quarterly Report we noted that we had trimmed our investment in Eagle Materials Inc. (NYSE:EXP) during the ‘Trump rally’ following the U.S. election. Subsequently the share price fell due to rising interest rates and pressure on U.S. new residential housing activity. We noted we would look to increase our shareholding in Eagle Materials should this share price pressure continue. We have taken advantage of the recent fall in the share price to modestly add to our investment, with Eagle Materials currently on the edge of the Fund’s top 10 holdings.”
A close-up of limestone being mined from a quarry.
Eagle Materials Inc. (NYSE:EXP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Eagle Materials Inc. (NYSE:EXP) at the end of the fourth quarter compared to 31 in the third quarter. While we acknowledge the potential of Eagle Materials Inc. (NYSE:EXP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We covered Eagle Materials Inc. (NYSE:EXP) in another article, where we shared the list of best stocks to buy according to Seth Klarman. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
