L1 Capital, an investment management firm, released its “L1 Capital International Fund” second quarter 2023 investor letter, a copy of the same can be downloaded here. In the June 2023 quarter, the fund returned 9.0% (net of fees) outperforming the benchmark’s (MSCI World Net Total Return Index in AUD) 7.5% return. The Fund and Benchmark’s Australian dollar reported quarterly returns increased as AUD depreciated 1.0% against the U.S. dollar and depreciated 0.9% against the Euro. The Fund returned 25.5% (net of fees), outperforming the Benchmark’s return of 22.4% by 3.1% (all in Australian dollars) for the year ended 30 June 2023. Please check the top five holdings of the fund to know its best picks in 2023.
L1 Capital International Fund highlighted stocks like Eagle Materials Inc. (NYSE:EXP) in the second quarter 2023 investor letter. Headquartered in Dallas, Texas, Eagle Materials Inc. (NYSE:EXP) is a heavy construction material and light building materials supplier. On July 26, 2023, Eagle Materials Inc. (NYSE:EXP) stock closed at $189.80 per share. One-month return of Eagle Materials Inc. (NYSE:EXP) was 2.64%, and its shares gained 53.31% of their value over the last 52 weeks. Eagle Materials Inc. (NYSE:EXP) has a market capitalization of $6.741 billion.
L1 Capital International Fund made the following comment about Eagle Materials Inc. (NYSE:EXP) in its second quarter 2023 investor letter:
“CRH and Eagle Materials Inc. (NYSE:EXP), the Fund’s two building materials investments, continued to contribute strongly to the Fund’s performance. Both companies have diversified exposure to residential (new and repair and renovation), commercial, and infrastructure construction. Eagle Materials is a purely US domestic business, while CRH generates around 75% of its earnings in North America and the vast majority of the remainder in Europe (if you step on a concrete manhole cover in Australia it was probably manufactured by CRH).
In this quarterly report we have spent several pages outlining our assessment of the current macroeconomic environment. We have also repeatedly stated that in our view, no-one can consistently predict the macroeconomic outlook and how share markets will respond. There are too many variables and uncertainties.
Assessing industries and individual businesses is not easy, but it is easier. In the case of CRH and Eagle Materials, their business drivers and industry considerations are at the more straight-forward end of the spectrum, but it has taken around 25 years of closely following the building materials industry to express this degree of confidence. We have written extensively on CRH and Eagle Materials in the past (please refer to our December 2021 and December 2020 quarterly reports for company overviews). Below is a brief update on U.S. new residential construction and what is going on in the U.S. cement industry…” (Click here to read the full text)
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Eagle Materials Inc. (NYSE:EXP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Eagle Materials Inc. (NYSE:EXP) at the end of first quarter which was 32 in the previous quarter.
We discussed Eagle Materials Inc. (NYSE:EXP) in another article and shared L1 Capital International Fund’s insights on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2023 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.
