L1 Capital Fund Sold Salesforce in Q2 2026, Citing AI Risks
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 versus a 12.5% benchmark return, cited significant implications of artificial intelligence for Salesforce's business model as the primary reason for the sale. Despite acknowledging Salesforce as a clear leader in its software sub-segment with strong management and financials, the fund believes management must respond with strong execution and business model adjustments. The proceeds from the sale were used to increase the fund's investment in Nvidia. Salesforce shares closed at $170.77 on July 17, 2026, with a one-month return of 13.76% but a 52-week loss of 34.89%. The fund's underperformance was attributed more to holdings it did not own rather than poor stock selection.
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