L1 Capital Fund Sold Salesforce in Q2 2026, Citing AI Risks and Business Model Challenges
L1 Capital International Fund disclosed in its Q2 2026 investor letter that it sold its position in Salesforce (CRM) during the quarter. The fund, which returned +2.6% net of fees compared to a benchmark return of 12.5%, cited significant implications of artificial intelligence for Salesforce's business model as a key reason for the sale. The fund noted that while Salesforce is a clear leader in its software sub-segment with strong management and financials, management will need to respond with strong execution and adjustments. L1 Capital sold into a bounce in Salesforce's share price and used the proceeds to increase its investment in Nvidia. As of July 17, 2026, Salesforce shares closed at $170.77, with a one-month return of 13.76% but a 52-week loss of 34.89%. The fund's underperformance was attributed more to investments not held rather than those held.
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