L1 Capital, an investment management firm, released its “L1 Long Short Fund” (unhedged) third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The L1 Long Short Fund (LSF) portfolio generated a return of 13.3% in the September quarter, bringing the calendar-year performance to 28.7%.  Dovish Fed commentary, robust U.S. earnings, and a continued momentum in A.I. investment lifted global equities higher in the quarter. The portfolio performed well this quarter, with 19 stocks contributing over 0.5% to returns, and also benefited from rising Gold and Copper prices. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, L1 Long Short Fund highlighted stocks such as Nexgen Energy Ltd. (NYSE:NXE). Nexgen Energy Ltd. (NYSE:NXE) is an exploration and development stage company, engages in the acquisition, exploration, evaluation, and development of uranium properties in Canada. The one-month return for NexGen Energy Ltd. (NYSE:NXE) was 15.42%, and its shares gained 25.73% over the last 52 weeks. On December 11, 2025, NexGen Energy Ltd. (NYSE:NXE) stock closed at $9.43 per share, with a market capitalization of $6.173 billion.

L1 Long Short Fund stated the following regarding NexGen Energy Ltd. (NYSE:NXE) in its third quarter 2025 investor letter:

"Having extensively reviewed the investable universe across the Uranium sector, we favour investing in companies with tier one projects in Western jurisdictions that will evolve to become globally strategic assets. A key pick in the Long Short Fund has been NexGen Energy Ltd. (NYSE:NXE).

Story Continues

Is NexGen Energy Ltd. (NXE) the Best Canadian Penny Stock to Invest in Now?

NexGen Energy Ltd. (NYSE:NXE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held NexGen Energy Ltd. (NYSE:NXE) at the end of the third quarter, which was 40 in the previous quarter. While we acknowledge the potential of NexGen Energy Ltd. (NYSE:NXE) 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 NexGen Energy Ltd. (NYSE:NXE) and shared a bullish thesis on the company. The previous quarter report L1 Long Short Fund indicated that Nexgen Energy Ltd. (NYSE:NXE) experienced a rise due to the increase in uranium prices and expressed optimism about its growth potential. In addition, please check out our hedge fund investor letters Q3 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.

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