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L1 Capital Long Short Fund

Australia’s best performing long short fund
(since inception in 2014)^
Return since inception*
19.2% p.a.
Australia’s best performing long short fund

(since inception in 2014)^
Preserved >80% of investors’ capital in falling markets**

An absolute return fund that offers investors a highly diversified portfolio of long and short positions based on rigorous, fundamental research process

Fund managers

Raphael Lamm

Joint Managing Director and Co-Chief Investment Officer View bio

Mark Landau

Joint Managing Director and Co-Chief Investment Officer View bio

Strategy overview

Strategy inception date
1 September 2014
Investment approach
An absolute return fund that offers investors a highly diversified portfolio of long and short positions based on rigorous, fundamental research
Investment objective
Aims for strong, positive, risk-adjusted returns whilst preserving shareholder capital in falling markets
Benchmark
None
Typical holdings
50-100 positions (combined longs and shorts)
Position sizes^
Long
Range 1-5%
Typical size 3%
Exceptional risk/reward >5%

Short
Range 1-3%
Typical size 2%
Exceptional risk/reward >3%

Geography
Australia, with up to 30% international (gross)
Net/gross exposure
30-100% net long (typically). Expect to average 60-70% over the cycle
Investment Manager
L1 Capital Pty Ltd
ACN 125 378 145
AFSL 314 302

Competitive advantages

The L1 Capital Long Short Strategy has three enduring advantages:

  1. Market exposure: Ability and willingness to adjust the portfolio net long to reflect the risk/reward of the market.
  2. Shorting: Portfolio is able to profit from falling share prices (as well as rising).
  3. International exposure: Able to exploit research insights offshore, not just domestically, broadening the opportunity set beyond the Australian market.

Together, these three levers, which the Investment Team uses actively and with conviction, are tools for generating returns from all of the team’s investment and market insights.

The L1 Capital Long Short Fund’s competitive edge comes from:

  • L1’s investment process that combines valuation with qualitative considerations to identify attractive investment opportunities. The approach’s strict valuation criteria tends to produce a slight value and contrarian bias. At the core of the bottom-up, fundamental, research-driven approach is the team conducting several thousand company meetings each year.
  • Extensive network of contacts throughout corporate Australia and overseas that provides a more complete and up-to-date perspective on industry trends, inflection points, risks, etc. Many fund managers purely meet with company management and sell-side analysts, which the Australian Equities team believe provides a biased and narrow perspective on a company/industry.
  • Contrarian approach which has generated alpha from buying cyclical stocks at a low point in their cycle (and shorting at a high point) and overcoming behavioural biases that tend to promote momentum investing.

Strategy performance

Net performance as at **DATE** for the Daily Class. Inception Date 3 October 2016. Data prior to that date relates to the Monthly Class which has a different fee structure, inception date 1 September 2014. Past performance should not be taken as an indicator of future performance.

Strategy insights

How to Invest

There are currently four ways to invest in the L1 Capital Long Short Fund

L1 Long Short Fund Limited (ASX:LSF)
Listed Investment Company (LIC) listed on the ASX
L1 Capital Long Short Fund - Daily Class
Unlisted Managed Fund with daily liquidity
L1 Capital Long Short Fund - Monthly Class
Unlisted Managed Fund with monthly liquidity
L1 Capital Long Short (Offshore Feeder) Fund
Cayman Master Feeder Fund denominated in USD

You can also contact us for further assistance.

^ Ranking in FE Analytics Australian Shares universe as at 31 December 2023.
* Net performance as at **DATE** for L1 Capital Long Short Fund – Monthly Class, inception date 1 September 2014. Past performance should not be taken as an indicator of future performance.
** Relates to the L1 Capital Long short Fund – Monthly Class, inception date 1 September 2014.

Information contained on this page
The opinions, advice, recommendations and other information contained on this page, whether express or implied, are published or made by L1 Capital Pty Ltd (ABN 21 125 378 145), Australian Financial Services Licence (314302), and by its officers and employees (collectively “L1 Capital”) in good faith in relation to the facts known to it at the time of preparation. L1 Capital has prepared this publication without consideration of the investment objectives, financial situation or particular needs of any individual investor, and you should not rely on the opinions, advice, recommendations and other information contained in this publication alone. This publication contains general financial product advice only. Past performance is not a reliable indicator of future performance.

Disclaimer and limitation of liability
To the maximum extent permitted by law, L1 Capital will not be liable in any way for any loss or damage suffered by you through use or reliance on this information. L1 Capital’s liability for negligence, breach of contract or contravention of any law, which cannot be lawfully excluded, is limited, at L1 Capital’s option and to the maximum extent permitted by law, to resupplying this information or any part of it to you, or to paying for the resupply of this information or any part of it to you.

Copyright
Copyright in this publication is owned by L1 Capital. You may use this information in this publication for your own personal use, but you must not (without L1 Capital’s consent) alter, reproduce or distribute any part of this publication, transmit it to any other person or incorporate the information into any other document.

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