Here's L1 Capital International Fund's Overview on Jacobs Solutions (J)

L1 Capital, an investment management firm, released its “L1 Capital International Fund” (unhedged) second quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 4.5% (net of fees) in the June quarter compared to the MSCI World Net Total Return Index’s (in AUD) 6.0% return. The Fund returned 22.1% (net of fees) for the year ended June 30, 2025, compared to 18.5% for the benchmark. During the quarter, the Information Technology and Communication Services sectors outperformed others, driven by the Magnificent 7. Please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, L1 Capital International Fund highlighted stocks such as Jacobs Solutions Inc. (NYSE:J). Jacobs Solutions Inc. (NYSE:J) provides infrastructure and advanced facilities, and consulting services. The one-month return of Jacobs Solutions Inc. (NYSE:J) was 8.16%, and its shares gained 12.04% of their value over the last 52 weeks. On July 16, 2025, Jacobs Solutions Inc. (NYSE:J) stock closed at $137.73 per share, with a market capitalization of $16.549 billion.

L1 Capital International Fund stated the following regarding Jacobs Solutions Inc. (NYSE:J) in its second quarter 2025 investor letter:

"Jacobs Solutions Inc. (NYSE:J) (Jacobs) was founded in 1947 by Joseph Jacobs as a one-man chemical engineering consulting business. Over the next nearly 80 years the business has grown through international expansion and strategic acquisitions to become one of the largest engineering design firms globally with over 45,000 employees.

Management and their capital allocation decisions are central tenets to how we assess Quality businesses. Many management teams are focused on growth. Fewer management teams are willing to divest their way to greatness. Over the past decade, initially under the leadership of Steve Demetriou and subsequently by current Chairman and CEO Bob Pragada, Jacobs has undergone a drastic strategic shift in business profile, pivoting from its historically more cyclical and lower margin businesses..." (Click here to read the full text)

Jacobs Solutions Inc. (NYSE:J) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Jacobs Solutions Inc. (NYSE:J) at the end of the first quarter, which was 42 in the previous quarter. While we acknowledge the potential of J as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Jacobs Solutions Inc. (NYSE:J) and shared the top dividend stocks according to dividend yields. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.