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 RH plc (NYSE:CRH). Headquartered in Dublin, Ireland, CRH plc (NYSE:CRH) is a building materials solutions provider. The one-month return of CRH plc (NYSE:CRH) was 15.90%, and its shares gained 29.69% of their value over the last 52 weeks. On December 11, 2025, CRH plc (NYSE:CRH) stock closed at $126.99 per share, with a market capitalization of $85.003 billion.

L1 Long Short Fund stated the following regarding CRH plc (NYSE:CRH) in its third quarter 2025 investor letter:

"CRH plc (NYSE:CRH) (Long +31%) shares rallied after reporting solid second quarter earnings and upgrading its full year EBITDA guidance towards the top end of the prior range. The company was able to offset adverse weather conditions and a subdued U.S. residential market to deliver strong earnings growth and margin expansion with its Q2 results. U.S. infrastructure spending continues to remain robust and largely unaffected by the change in administration. With less than 40% of the Infrastructure Investment and Jobs Act (IIJA) spending deployed to date, we expect further tailwinds for infrastructure spending over the medium-term.CRH: A Reliable Source of Materials Dividends for Global Investors

CRH plc (NYSE:CRH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 102 hedge fund portfolios held CRH plc (NYSE:CRH) at the end of the third quarter, which was 89 in the previous quarter. While we acknowledge the potential of CRH plc (NYSE:CRH) 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.

Story Continues

In another article, we covered CRH plc (NYSE:CRH) and shared Baron Real Estate Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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

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