L1 Capital Global Long Short Strategy

The L1 Capital Global Long Short Fund (GLSF) is the next evolution of L1’s award-winning investment approach applying the same team, philosophy and process behind Australia’s best performing Long Short Fund (since inception in 2014)^ to a global investment universe.

GLSF targets high-quality, undervalued companies across developed markets, using a disciplined “Quality Value” approach. Backed by over $70 million of founder capital and managed by L1’s Co-Founders Mark Landau and Rafi Lamm, GLSF is designed for investors seeking strong risk-adjusted returns, capital protection in market downturns and true manager alignment.

In this video, Mark Landau, Co-Founder and Co-Chief Investment Officer, provides an in-depth overview of the L1 Capital Global Long Short Strategy (GLSF). Specifically, he discusses:

• Introduction to GLSF (starts at 0:18 minutes)
• GLSF | Same investment process, team and objectives as LSF (2:17 minutes)
• GLSF performance (3:16 minutes)
• GLSF | Protecting capital in down markets (4:16 minutes)
• Leveraging the expertise of L1 Capital investment team (4:25 minutes)
• GLSF | Examples of current investments (4:40 minutes)
• GLSF portfolio positioning (10:55 minutes)
• Alignment of interests (11:44 minutes)
• Why invest in L1 Capital Global Long Short Fund? (12:52 minutes)

Released: November 2025.

This video and the information contained within it is intended solely for wholesale clients and is not intended to be delivered or made available, or relied upon or distributed by, retail clients. You should not view unless you are a wholesale client. To the extent permitted by law, L1 does not accept any responsibility arising in any way relating to the distribution or delivery of the video to retail clients.

Investment philosophy

Both valuation and qualitative factors are the ultimate determinant of share price performance. Both factors are of critical importance. We believe that pure ‘value’ managers may overemphasize valuation metrics and buy ‘value traps’. Conversely, ‘growth’ managers may overemphasise growth or business quality and underestimate the importance of valuation and cashflows. Finally, the emotional, short term and backward-looking nature of markets presents opportunities for investors who are unemotional, long term and highly disciplined to avoid many typical behavioural biases (confirmation bias, loss aversion, herding bias and optimism bias) common among investors.

Investment process

The L1 Capital Long Short Equities Team combines valuation (primarily discounted cash flow) with qualitative considerations (management quality, long-term industry and company structure and business trends) to identify attractive investment opportunities. Given the strict valuation criteria in the process, there tends to be a slight value and contrarian bias.

The investment process is based on detailed fundamental stock research. The 12-person team’s comprehensive company visitation programme of several thousand company meetings a year includes one-on-one visits with company management, listed and unlisted competitors, customers, suppliers, operational personnel, regulators, consultants, unions and other parties that can help provide a deeper insight. The team have incorporated a bespoke research database and ranking tool (developed in 2007) which has been instrumental to the firm’s success and consistency.

This intensive, bottom-up stock selection has been a defining feature of L1 Capital’s approach since inception. It enables the L1 Capital team to put into context their detailed analysis of annual reports, company announcements, industry publications, broker reports and other relevant material, which, when combined with their financial modelling, allow them to form views on management quality, company structure and business trends.

Portfolio Construction and risk management

The portfolio typically comprises 40-80 positions across a wide range of sectors and themes. The Co-CIOs must each independently approve of each new position, long or short, for it to enter the portfolio.

Long positions reflect the stocks with the highest combined valuation and qualitative rankings from L1 Capital’s proprietary research, overlaid with consideration of asymmetry of likely returns, liquidity characteristics, individual stock contribution to risk and correlation between positions. Short positions typically are the lowest ranked stocks, reflecting being overvalued and exhibiting weak management, industry structure and operating trends, and, importantly, must have a clear catalyst for a share price fall. Shorts are held at a lower weight in the portfolio than an equivalent long to provide a buffer in case the shares rally in the meantime until the catalyst arrives.