L1 Capital has initiated a position in chip giant Nvidia, after previously holding back as the artificial intelligence darling generated significant returns for other investment managers. David Steinthal, portfolio manager and chief investment officer of L1 Capital International, took advantage of a recent dip in Nvidia’s share price to add the stock to L1’s international fund. Nvidia’s stock has surged by 1240 per cent over the past five years.
Steinthal, who also took charge of Platinum Asset Management’s fund this month, admitted to underestimating the growth and profitability of AI and Nvidia. He noted that recent industry developments indicate AI’s commercial success is likely to be even larger and faster than previously anticipated. L1 Capital is an investment management firm based in Melbourne, Australia. They manage funds for institutions, family offices, and high net worth individuals.
L1’s international fund returned 2.6 per cent in the September quarter, lagging the MSCI World Net Total Return Index’s 6.1 per cent gain. It returned 19.7 per cent in the year through September, also behind the benchmark’s 22.7 per cent rise. Meanwhile, Platinum’s International Technology Fund recently exited positions in Alphabet and Meta, citing concerns about slowing earnings growth. GQG Partners’ chairman, Rajiv Jain, has warned that the rally in tech stocks is creating a bubble bigger than the dotcom one.
In addition to Nvidia, L1 also initiated a position in mining technology company Weir Group during the September quarter. It increased its holdings in Taiwan Semiconductor, Uber, Intuit, and Danaher. The fund reduced its position in HCA Healthcare and sold its investment in Eagle Materials. Top holdings in L1’s international fund by the end of September included Visa, Mastercard, Microsoft, Amazon, and Intercontinental Exchange.
