L1 Capital Repositions Portfolio Toward Non‑AI Assets

L1 Capital International Fund announced its exit from CDW Corporation in the Q2 2026 report, signaling a shift toward higher‑valued, non‑AI‑centric assets.

Strategic Exit: Moving Away from AI‑Heavy Resellers

The fund highlighted that CDW faces only second‑order AI implications, noting that customers may allocate less to traditional hardware and software in favor of AI‑focused solutions.

CDW Performance and Valuation Metrics

■Market cap: $17.02 billion

■One‑month return: +7.83%

■52‑week decline: ‑24.67%

■Closing price on July 17, 2026: $133.24

Alternative Targets and Portfolio Dynamics

The fund reallocates capital to American Express, Apollo Group, Danaher, HCA, and ICE, all of which are considered non‑AI‑sensitive and trading below assessed fair value.

Performance Comparison and Investor Relations

■Fund’s Q2 2026 net return: +2.6% (after fees)

■Benchmark return: +12.5% (A$)

■Under‑performance primarily stems from the omission of high‑momentum holdings.

Dr. Yaman Ege – Semiconductor and Technology Supply‑Chain Director: “The CDW divestiture reflects a cautious stance against the AI hype. As AI‑driven spending tightens, valuation pressure and liquidity constraints intensify for high‑growth tech resellers. L1 Capital’s pivot to sturdier, fundamentals‑driven companies aligns with a capital‑preservation strategy. This move serves as a clear signal for investors seeking stability amid market volatility.”