L1 Capital International, an investment management company, released its “L1 Capital International Fund” third-quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned -0.4% net of fees in the third quarter compared to a 0.3% return for the MSCI World Net Total Return Index in AUD. The depreciation of Australian dollars against the USD and Euro added to the fund’s reported and benchmark returns. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
L1 Capital International highlighted stocks like Adobe Inc. (NASDAQ:ADBE) in its Q3 2022 investor letter. Headquartered in San Jose, California, Adobe Inc. (NASDAQ:ADBE) is a global software company. On December 6, 2022, Adobe Inc. (NASDAQ:ADBE) stock closed at $331.15 per share. One-month return of Adobe Inc. (NASDAQ:ADBE) was 10.80% and its shares lost 49.30% of their value over the last 52 weeks. Adobe Inc. (NASDAQ:ADBE) has a market capitalization of $153.952 billion.
L1 Capital International made the following comment about Adobe Inc. (NASDAQ:ADBE) in its Q3 2022 investor letter:
“Late in the quarter, one of our smallest positions, Adobe Inc. (NASDAQ:ADBE), reported quarterly results and gave guidance which was modestly below our expectations. The share price fell substantially, not because of current financial performance and outlook, but principally because of the announced acquisition of Figma for $20b in cash and shares, plus additional retention payments to Figma employees. Figma, founded in 2012, has pioneered the development of software for collaborative product design on the web. The acquisition is a mix of offence and defence by Adobe management. Strategically the acquisition makes a lot of sense, with Figma complementary to Adobe’s suite of software and it is the clear leader in a fast-growing market. We also believe Adobe was acting defensively, fearing Figma could develop into a strong direct competitor over time. The acquisition price was extremely high, with annual recurring revenue estimated to be $400m by the end of 2022.”
Adobe Inc. (NASDAQ:ADBE) is in 22nd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 93 hedge fund portfolios held Adobe Inc. (NASDAQ:ADBE) at the end of the third quarter, which was 92 in the previous quarter.
We discussed Adobe Inc. (NASDAQ:ADBE) in another article and shared the best falling stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.