The L1 Capital International Fund (unhedged) returned 3.5% net of fees in the September 2026 quarter, beating its benchmark's 1.5% gain, and held 22 investments, with the ten largest making up about 63% of assets. In its Q3 2026 investor letter, the fund highlighted Microsoft (MSFT), which contributed more than 0.5 percentage points to returns. The fund pointed to two drivers: Microsoft 365 Copilot, with paid seats reaching 30 million and net seat additions more than doubling quarter-on-quarter, and whether Azure can earn attractive returns on hundreds of billions of dollars of capital expenditure. Microsoft shares rose 38% in the September quarter, which the fund attributes mainly to a reversal of excessive investor pessimism rather than a change in fundamentals. As of October 20, 2026, the stock closed at $531.87, for a market cap of $3.95 trillion.
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Related tickers and likely impact
MSFT
▲ Likely positiveMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $4.0T |
| Close on 10/20/2026 | 532.13 |
| Change that session | -0.26% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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