| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 13.5% | -0.2% | -0.2% |
L1 Long Short Fund returned -0.2% in March 2026 versus ASX200AI -1.6%, bringing 12-month returns to 44.7%. The quarter was dominated by two distinct periods: January-February saw AI fears drive software sell-offs as advanced enterprise AI tools highlighted potential for rapid structural change, while March brought the Iran war triggering the worst oil supply shock in history and broad market volatility. The fund used this volatility strategically, adding to gold, copper, construction materials and travel stocks while trimming energy and infrastructure positions that had outperformed. Gold fell 12% despite geopolitical tensions due to ETF outflows and sovereign selling, but the fund views current valuations as compelling with key positions at less than 6x P/E. Copper positions were re-established after 20-25% declines brought valuations below 5x EV/EBITDA, supported by strong long-term electrification demand. The portfolio now trades at a median 9x FY27 P/E with double-digit growth and modest leverage, positioning for medium-term opportunities from current market dislocations.
L1 Capital is using the Iran war-driven market volatility to identify high-quality companies trading far below fair value, positioning the portfolio with a median 9x FY27 P/E while maintaining exposure to long-term structural themes like electrification and infrastructure growth.
The fund believes the portfolio looks particularly attractive at present with median long position trading on approximately 9x FY27 P/E with double-digit earnings growth and modest debt levels. They view periods of elevated market volatility as providing outstanding medium-term opportunities to invest in great companies at exceptional prices.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 22 2026 | 2026 Q1 | AZJ.AX, BSL.AX, CRH, JHX.AX, QAN.AX, RMV.L, STO.AX | AI, Australia, Copper, energy, gold, Iran War, Long/Short, volatility |
STO.AX BSL.AX AZJ.AX QAN.AX JHX.AX RMV.L |
L1 Capital navigated Iran war volatility by rotating from outperforming energy into discounted quality names across gold, copper, and construction materials. The fund views current market dislocations as creating exceptional medium-term opportunities, with the portfolio trading at attractive 9x forward P/E while maintaining exposure to structural electrification and infrastructure themes. |
| Jan 15 2026 | 2025 Q4 | ALL.AX, AZJ.AX, BSL.AX, CRH, CTD.AX, FLT.AX, FTT.AX, JHX.AX, LLOY.L, LNW.AX, LSF.AX, MIN.AX, STLD, WGX.AX | Australia, gold, infrastructure, Long/Short, Steel, Travel, value |
BSL AU WGX AU MIN AU AZJ AU FTT CN LNW AU JHX AU LLOY LN FLT AU |
L1 Long Short Fund delivered 46.8% annual returns in 2025, significantly outperforming the ASX200AI's 10.3%. The manager views Australian large caps as overvalued and focuses on undervalued offshore opportunities, particularly in infrastructure, gold, U.S. cyclicals, uranium and value stocks. Portfolio maintains strong value skew with quality companies offering compelling risk-adjusted returns globally. |
| Oct 20 2025 | 2025 Q3 | CNU.AX, CRH, FRA.DE, HBM.TO, IMD.AX, LSF.AX, MIN.AX, NXE.TO, STO.AX, WGX.AX | AI, Australia, Copper, gold, Long/Short, Mining, uranium, value |
NXE CN HBM MIN WTG AU NXE CN HBM MIN WTG AU |
L1 Long Short Fund returned 13.3% in September 2025, driven by uranium, gold and copper exposures. The value-focused portfolio trades at 11x median P/E with double-digit growth expectations. While Australian markets appear fully valued, compelling offshore opportunities exist in infrastructure, materials and quality value stocks with strong fundamentals and conservative balance sheets. |
| Jul 14 2025 | 2025 Q2 | AIR.PA, FTT.TO, HBM.TO, JD.L, LSF.AX, NKE, NXE.TO, QAN.AX, SGH.AX, STO.AX, VEA.AX | Australia, commodities, global, infrastructure, Long/Short, Mining, Trade Policy, value |
FTT CN NXE CN HBM CN VEA AU STO AU QAN AU AIR FP FTT.TO |
L1 Long Short Fund returned 12.2% in June quarter despite tariff-driven volatility, benefiting from broad stock selection and tactical positioning adjustments. Portfolio maintains strong value bias with 11x median P/E and double-digit growth prospects. Manager sees Australian market fully valued but finds compelling offshore opportunities in infrastructure, commodities, and travel sectors providing attractive risk-adjusted returns. |
| Mar 31 2025 | 2025 Q1 | BSL.AX, FLTR.L, FRA.DE, IMD.AX, JD.L, JHX.AX, LLOY.L, MIN.AX, RMV.L, VEA.AX | Australia, Europe, gold, infrastructure, Long/Short, Trade Policy, value, volatility | - | L1 Long Short Fund delivered 1.3% returns amid market volatility, benefiting from quality value positioning in gold, UK banks, and infrastructure while shorting expensive tech. Trump's tariff policies have structurally elevated volatility, creating stock-picking opportunities. The fund maintains defensive positioning with median 8.8x P/E, focusing on Europe/UK exposure and expecting continued growth-to-value rotation. |
| Dec 31 2024 | 2024 Q4 | 000660.KS, CNU.AX, CRH, CVE, DEG.AX, DOW.AX, FLTR.L, FRA.DE, LSF.AX, LTMAQ, MEG.TO, NEM, NST.AX, NWG.L, QAN.AX, QBE.AX, RMV.L, TESCO.L, TSM, WGX.AX | Australia, cyclicals, Factor, gold, growth, Long/Short, Overvaluation, value | - | L1 Long Short Fund faced challenging Q4 with -7.9% return as extreme Growth factor dominance continued, but maintains conviction in quality value approach. Portfolio positioned in lower P/E stocks with strong cash flows while markets show significant overvaluation. Gold equities performed well amid 26% price appreciation. Using volatility to add oversold positions. |
| Sep 30 2024 | 2024 Q3 | BKR, CBA.AX, CNU.TO, CRH, CVE.TO, FLTR.L, FRA.DE, HAL, MEG.TO, MIN.AX, NWG.L, NXE.TO, OXY, QAN.AX, REA.AX, RMV.L, TSCO.L, WOR.AX, WOW.AX, XOM | Australia, Banking, energy, gold, Long/Short, Travel, United Kingdom, value | - | L1 Long Short Fund delivered 2.4% in Q3, driven by strong performance from Qantas, CRH, and UK holdings like Tesco and NatWest. The value-focused managers see markets as fully priced but continue finding opportunities in cyclical stocks at depressed multiples and UK companies trading at significant discounts to global peers. They're positioning for rotation away from overvalued domestic banks toward undervalued areas. |
| Jul 15 2024 | 2024 Q2 | 000660.KS, AAPL, AGL.AX, AMZN, CBA.AX, CRH, CVE.TO, GOOGL, HBM, MEG.TO, META, MIN.AX, MSFT, NEM, NVDA, NXE.TO, QAN.AX, TESCO.L, TSLA, TSM | AI, Australia, Banking, Copper, energy, gold, Long/Short, value | - | L1 Long Short Fund outperformed in Q2 despite seeing markets as fully priced with narrow leadership. The fund took copper profits, exited QBE after 100% gains, and positioned in AI supply chain beneficiaries. Strong performance from AGL Energy and SK Hynix offset commodity-related weakness. Currently finding opportunities in low P/E, cash-generative companies while shorting expensive growth stocks with optimistic expectations. |
| Apr 15 2024 | 2024 Q1 | CBA.AX, CRH, CS.TO, CVE.TO, DOW.AX, FLTR.L, FRA.DE, IMD.AX, NXE.TO, QBE.AX, STO.AX, TECK.TO, WGX.AX | Australia, banks, Copper, energy, Long/Short, materials, technology, value | - | L1 Long Short Fund returned 7.4% in Q1 2024, driven by copper, energy and gold tailwinds. The value-focused strategy targets low P/E longs versus expensive shorts, benefiting from supply-constrained commodity markets. Despite fully-priced equity indices and growth stock headwinds, bottom-up stock picking delivered strong performance with emerging sector rotation supporting the portfolio's positioning. |
| Dec 31 2023 | 2023 Q4 | AZJ.AX, BABA, BSL.AX, CNU.AX, CRH, CVE, FLTR.L, IMD.AX, NEM, NUF.AX, STO.AX, VEA.AX, WGX.AX | Australia, energy, gold, industrials, infrastructure, Long/Short, materials, value |
STO.AX CVE.TO CRH FLTR.L NEM WGX.AX NUF.AX IMD.AX CNU.NZ AZJ.AX |
L1 Capital's concentrated long/short strategy returned 2.9% in Q4, lagging broader markets due to Energy headwinds. Portfolio maintains five core themes: undervalued Energy positions, global champions at attractive multiples, Gold hedges with production growth, proprietary tech companies, and Infrastructure monopolies. Manager expects 2024 M&A activity to benefit undervalued holdings despite stretched market valuations. |
| Sep 30 2023 | 2023 Q3 | CVE, FLTR, IMD.AX, JHX.AX, NUF.AX, STO.AX, SVW.AX, WOR.AX | Australia, energy, LNG, Long/Short, oil, Santos, value |
STO.AX CVE.TO SVW.AX JHX.AX WOR.AX |
L1 Long Short Fund delivered 1.0% returns despite global market weakness, driven by strong energy exposure and stock-specific catalysts. The fund maintains a constructive energy outlook, believing tight supply-demand dynamics will support prices despite bearish institutional sentiment. Key focus remains on Santos' value unlock potential through LNG asset separation, while navigating macro headwinds from higher rates. |
| Jul 23 2023 | 2023 Q2 | AKE CN, DOW AU, FLTR LN, JHX, TECK | - | - | |
| Mar 31 2023 | 2023 Q1 | - | - | - | |
| Feb 24 2023 | 2022 Q4 | CHR CN, CVE, FLTR LN, MDGL, MIN AU, ORG AU, QAN AU, QBE AU, SHOP, TECK | - | - | |
| Oct 24 2022 | 2022 Q3 | CVE, MIN AU, PPB GR, QAN AU, RHC AU, SFR AU | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
OilOil prices spiked over 50% due to the Iran war and closure of the Strait of Hormuz, creating the worst oil supply shock in modern history. The fund reduced energy exposure during March expecting oil prices to normalize as the conflict resolves, despite near-term tightness continuing. |
Iran Supply shock Strait of Hormuz Energy Geopolitical |
GoldGold fell 12% in March despite geopolitical tensions due to large ETF outflows, profit-taking, and sovereign selling. The fund views current valuations as compelling with key positions trading at less than 6x P/E at spot gold price, providing significant margin of safety. |
ETF outflows Valuations Margin of safety Geopolitical Central banks | |
CopperStrong long-term demand from electrification, grid expansion, and renewable energy with limited projected supply. The fund re-entered copper positions after a 20-25% sell-off brought sector valuations below 5x EV/EBITDA, viewing it as an attractive entry point. |
Electrification Supply deficit Valuations Infrastructure Renewable energy | |
AIAdvanced AI tools from Anthropic highlighted potential for comprehensive automation of complex workflows, suggesting structural change could happen more quickly than expected. This drove a structural shift in market expectations for software companies with previously assumed high growth rates. |
Automation Software disruption Structural change Enterprise Workflows | |
ConstructionConstruction materials names pulled back on higher interest rates and softening demand expectations, contributing to bottom-of-cycle valuations with asymmetric upside potential. The fund increased exposure to CRH and James Hardie following 15-20% sell-offs. |
Interest rates Valuations Cyclical Housing Materials | |
TravelTravel-related equities fell sharply on higher oil prices and fears of reduced global travel demand. However, company fundamentals remain attractive and travel demand outside the Middle East appears resilient, while fuel hedging provides short-term cost protection. |
Oil prices Demand resilience Fuel hedging Regional impact Fundamentals | |
| 2025 Q4 |
ConcentrationU.S. equity market concentration has reached extreme levels with the ten largest S&P 500 constituents accounting for over 40% of index weight. This concentration creates challenges for risk management and alpha generation in actively managed portfolios. The concentration is driven by both expanding valuations and growing earnings share of the largest companies. |
Market Structure Index Weight Risk Management Alpha Generation Portfolio Construction |
Risk ManagementConcentrated markets create uneven beta distributions and make portfolios more sensitive to estimation error during market stress. Traditional risk models may be unprepared for this environment where it's possible to construct beta-1.0 portfolios with extreme underlying dispersion. This suggests need for more robust approaches to measuring and managing beta risk. |
Beta Risk Risk Models Portfolio Risk Market Stress Risk Estimation | |
TechnologyBreakthroughs in tech and artificial intelligence have driven strong performance in mega cap stocks. The ten largest companies are now concentrated in technology-related industries, making them more correlated and volatile than their predecessors. This includes stocks like Tesla and Nvidia that are generally more volatile than previous blue-chip leaders. |
AI Mega Cap Volatility Correlation Performance | |
| 2025 Q3 |
UraniumNuclear energy is experiencing a resurgence driven by AI data center power demands and policy support from governments and hyperscalers. Uranium markets face structural deficits as production has lagged consumption for decades while new nuclear capacity targets require 3-4x increases. Supply is concentrated in geopolitically sensitive regions with limited Western alternatives. |
Nuclear Energy Transition Critical Minerals Supply Deficit Geopolitical Risk |
GoldGold performed strongly during the quarter rising 17%, driven by central bank buying, expanding US fiscal deficits, interest rate cuts and concerns regarding Fed independence. The 46% annual gain represents the strongest performance since 1979, supported by a global rate cutting cycle and currency devaluation concerns. |
Central Banks Fiscal Deficits Rate Cuts Currency Safe Haven | |
CopperCopper prices rose during the quarter driven by supply disruptions and strong global demand outlook from power infrastructure and grid spending. Multiple major mines experienced operational disruptions while demand remains underpinned by electrification, AI infrastructure and defense spending requirements. |
Supply Disruptions Infrastructure Electrification Grid Spending Industrial Demand | |
AILarge hyperscalers are expected to spend $460 billion on AI-related capex in 2025, representing a 55% increase from 2024 and more than double 2022/23 spending. The key debate remains what potential returns this massive investment will drive, particularly given the short depreciation timeframes for rapidly advancing technology. |
Hyperscalers Capex Data Centers Technology Investment Returns | |
ValueThe portfolio has a stronger than usual value skew with the median long position having a P/E of only 11x and expected double-digit EPS growth. This provides a compelling medium-term return profile despite elevated market multiples and a slowing macro backdrop. |
Low Multiples EPS Growth Market Multiples Return Profile Valuation Support | |
| 2025 Q2 |
CopperPortfolio has exposure to copper through companies like Hudbay Minerals and added to copper exposure during April volatility. Declining grades at Chilean copper mines require more material movement, driving demand for mining equipment. Copper World project will increase Hudbay's copper production by more than 50%. |
Copper Mining Chile Hudbay Production |
GoldGold has been a key contributor to fund returns in first half of 2025 with almost 30% increase in US dollar gold price since start of year. Portfolio holds several gold stocks which provide resilience in event of additional volatility from trade measures or economic slowdown. |
Gold Precious Metals Resilience Volatility Safe Haven | |
InfrastructurePortfolio's largest sector exposure is in Infrastructure where manager sees numerous opportunities. These companies have assets with relatively low macro risk and predictable cashflow growth outlooks but are being significantly undervalued by the market. Infrastructure exposure provides strong portfolio resilience. |
Infrastructure Cashflow Undervalued Resilience Predictable | |
TravelManager believes travel provides some of the best opportunities globally. Qantas continued strong performance with robust trading conditions and structural growth in Asia-Pacific travel demand. Virgin's ASX listing should encourage rational competitive dynamics going forward. |
Travel Airlines Qantas Asia-Pacific Tourism | |
Trade PolicyPresident Trump's Liberation Day tariff announcements dominated market headlines with substantially higher than expected tariff rates causing dramatic equity market sell-off. Trade policy remains highly uncertain with August 1 deadline for implementing higher measures. Consensus profit margin forecasts seem complacent about tariff-related earnings risks. |
Tariffs Trade Trump Policy Uncertainty | |
UraniumNexGen Energy moved higher as spot uranium prices increased 16% during quarter to US$74/lb. President Trump signed executive orders aimed at accelerating US nuclear investment with target to quadruple nuclear capacity to 400GW by 2050. NexGen is preparing to develop world's largest undeveloped uranium deposit. |
Uranium Nuclear NexGen Energy Policy | |
ValuePortfolio has stronger than usual Value skew with median long position having P/E of 11x, approximately 8% FCF yield and double-digit EPS growth. Manager sees compelling medium-term return profile despite slowing macro backdrop. Finding numerous undervalued stocks offshore with strong earnings growth and conservative balance sheets. |
Value P/E FCF Undervalued Earnings | |
| 2025 Q1 |
GoldGold sector rallied during the quarter as gold prices moved up ~19% amidst market and economic instability. The fund sees a favourable outlook for gold in the medium term supported by central bank buying and elevated macro and geopolitical risks. Gold equities continue to trade at exceptionally low valuations despite gold price increases. |
Gold Miners Central Banks Geopolitical Diversification Valuations |
ValueThe portfolio remains heavily weighted towards quality, lower P/E stocks with strong cash flow generation. Portfolio has a median P/E ratio of 8.8x, EPS growth of 20.3% and FCF yield of 9.3%. The fund expects continued rotation out of previously high momentum, high P/E stocks where valuations have been extremely stretched. |
Low PE Cash Flow Quality Rotation Undervalued | |
InfrastructureLargest individual sector exposure is to Infrastructure, where the fund sees opportunities with very attractive valuations for assets with low macro risk, stable cashflows and growing dividend profiles. This sector exposure provides the portfolio with desirable defensive qualities and protection from likely slowing economic activity. |
Defensive Stable Cashflows Dividends Low Risk Airports | |
Trade PolicyTrump announced headline tariffs substantially higher than market expected, with U.S. tariffs on China at 145% and China tariffs on U.S. goods at 125%. Trade tensions between the two largest economies are extremely elevated, creating uncertainty and volatility in equity markets. |
Tariffs China Uncertainty Inflation Negotiations | |
VolatilityEquity market volatility has moved structurally higher given Trump's more aggressive policy stance, heightened geopolitical tensions and lack of central bank backstop. The VIX spiked to its highest level since COVID, with extreme intra-day moves in the S&P500. |
VIX Policy Uncertainty Geopolitical Market Stress Opportunities | |
| 2024 Q4 |
GoldFund maintains significant long positions in gold equities amid 26% gold price increase in 2024. Central bank demand driven by geopolitical tensions and de-dollarization trends. Gold offers hedge against U.S. fiscal concerns and inflation risks. Asian demand accelerating while Western ETF flows declining. |
Central Banks Geopolitical Inflation Hedge De-dollarization Asian Demand |
ValuePortfolio heavily weighted towards quality, lower P/E stocks with strong cash flow generation. Manager facing significant factor headwind as Growth outperformed Value by 63% over past two years, the largest divergence since 1978. Believes elastic band has stretched far and expects reversion to quality value stocks. |
Factor Headwind P/E Multiples Cash Flow Quality Reversion | |
GrowthGrowth stocks dominated performance with Russell 1000 Growth outperforming Value by 63% over past two years, exceeding even Tech Bubble levels. December quarter saw another 9.1% outperformance. Portfolio impacted by extreme Growth momentum despite value investment style. |
Factor Performance Russell 1000 Tech Bubble Momentum Outperformance | |
| 2024 Q3 |
ValueThe fund continues to focus on quality, lower P/E stocks with strong cash flow generation and solid earnings growth outlooks. They see extreme crowding and overvaluation in domestic banks and several ASX20 stocks, while many cyclical stocks trade at both depressed P/E multiples and depressed earnings bases, providing opportunity for large, medium-term upside for patient investors. |
Valuation P/E multiples Cyclical Overvaluation Undervaluation |
United KingdomThe fund remains positive on UK investments where they have identified high-quality opportunities. UK valuations remain below 10-year average and materially below other major market indices. They are buying leading UK companies at roughly half the earnings multiples of comparable Australian peers, with stronger earnings outlooks, operating trends and balance sheets. |
UK Valuation discount Tesco NatWest Rightmove | |
EnergyThe team met several energy companies across Toronto and Houston. The overarching message continued to be one of production discipline and focus on shareholder returns. There has been consolidation across North America as energy companies prioritise efficiency and synergy realisation. The regulatory environment has not been the main bottleneck for US production growth. |
Production discipline Consolidation Shareholder returns Oil sands Shale | |
GoldThe team sees the precious metals sector as a stand-out opportunity, with key investments set to benefit from significant increase in profitability and cash flow generation at spot gold prices. Gold equities have materially lagged the gold price over the last 12 months, and long-term gold price used for consensus stock estimates continues to lag spot prices. |
Gold miners Precious metals Gold price Profitability Cash flow | |
TravelTravel and aviation meetings across UK, Europe and US supported a resilient consumer backdrop, albeit with some increased price sensitivity as the market normalises from post-Covid revenge travel. Premium travel demand remains notably strong. Supply is constrained by aircraft delivery delays and Pratt & Whitney engine issues, contributing to stable yields. |
Aviation Consumer resilience Premium travel Supply constraints Aircraft delays | |
| 2024 Q2 |
AIThe fund is positioned in AI supply chain companies including Taiwan Semiconductor and SK Hynix. Meetings indicate companies are in early stages of AI investment with capital expenditure on AI computing hardware expected to increase from 5% to 14.5% of IT budgets over three years. The fund sees continued strong growth for key AI positions. |
Semiconductors Computing Hardware Supply Chain Growth |
CopperThe fund used the rally in copper equities to take profits and materially reduce portfolio copper exposure during the quarter. They remain constructive on medium-term copper dynamics and will look to add exposure at more favorable entry points. |
Mining Commodities Cyclical Supply Demand | |
GoldGold miners are expected to benefit from significant cash generation increases given the 21% rally in gold prices over the past year. The fund sees several factors supporting a medium-term gold bull market including central bank buying, Chinese retail demand, and U.S. fiscal sustainability concerns with debt rising by $1 trillion every 100 days. |
Precious Metals Inflation Currency Central Banks Debt | |
Energy TransitionThere is growing realization that the energy transition will take longer to complete than expected. AGL is well positioned to navigate this change with key baseload power assets and solid cash generation to fund transition-related capital expenditure. |
Utilities Renewable Infrastructure Baseload Capital | |
BankingAustralian banks have driven 86% of the ASX200 return year-to-date despite flat to down earnings estimates. CBA trades at its most expensive valuation in history with no earnings growth expected for two years. The fund sees crowding and over-valuation with risks from potential bad debt increases. |
Financials Valuation Credit Australia Risk | |
| 2024 Q1 |
CopperManager expects copper market deficits to widen due to robust demand from electrification and constrained supply from insufficient new mines. Supply disruptions have highlighted tight market conditions with treatment charges falling significantly. Physical deficits are virtually unavoidable over the medium term. |
Electrification Supply Deficit Treatment Charges Mine Supply Scarcity Pricing |
EnergyOil market fundamentals remain robust with OPEC maintaining supply discipline and geopolitical tensions creating supply risks. Energy sector is well-positioned for attractive returns given favorable supply-demand backdrop and attractive valuations despite extremely negative hedge fund positioning. |
OPEC Supply Discipline Geopolitical Risk Oil Price Hedge Fund Positioning | |
GoldGold prices have risen sharply driven by robust central bank demand and increased geopolitical tensions. Gold equities have materially lagged the rally in gold prices, creating opportunities for leveraged exposure to both production growth and rising prices. |
Central Banks Geopolitical Tensions Gold Price Production Growth Leverage | |
| 2023 Q4 |
EnergyPortfolio maintains significant Energy exposure despite underperformance in 2023. Manager sees positive macro outlook with oil above $70, elevated geopolitical tensions, improving supply/demand dynamics, and multi-decade low inventories. Key positions include Santos with potential structural options and Cenovus generating strong free cash flows. |
Oil Natural Gas Energy Trading Exploration & Production Oil Sands |
GoldGold remains important portfolio component as hedge against geopolitical risk, inflation, and potential dollar weakness. Holdings include Newmont, now world's largest gold producer post-Newcrest acquisition, and Westgold with strong production growth expected from 250koz to over 300koz in coming years. |
Gold Gold Miners Gold Royalties Critical Minerals Mining Services | |
InfrastructureFocus on monopoly positions in highly regulated markets with huge barriers to entry. Holdings include Chorus owning majority of New Zealand's high-speed broadband infrastructure and Aurizon as leading Australian rail operator with potential for growing dividend streams. |
Broadband Rail Infrastructure Regulated Utilities Transmission Telecom Infrastructure | |
| 2023 Q3 |
EnergyEnergy remains a sector the fund is very constructive on, with analysis supporting potential for a more resilient market than investors expect. The fund believes the energy market will remain tight with solid demand growth and constrained supply growth, supporting oil prices well above industry break-even levels. OPEC+ supply discipline and declining U.S. shale drilling activity are key supply constraints. |
Oil Natural Gas LNG Energy Transition OPEC |
LNGThe fund sees Santos as the best Energy investment opportunity in Australia and proposes a structural separation of Santos' LNG assets to unlock value. LNG market fundamentals are attractive with tight current global market dynamics and expected long-term growth in demand resulting in sustained high LNG prices. The fund believes LNGCo would have the most concentrated LNG exposure among global peers. |
LNG Natural Gas Energy Santos Separation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 22, 2026 | Fund Letters | L1 Capital Long Short Fund | JHX.AX | James Hardie Industries plc | Building Materials | Construction Materials | Bull | Australian Securities Exchange | Building Products, construction materials, Cyclical, Housing, North America, Value | Login |
| Apr 22, 2026 | Fund Letters | L1 Capital Long Short Fund | RMV.L | Rightmove plc | Internet Content & Information | Interactive Media & Services | Bull | London Stock Exchange | Digital, marketplace, network effects, Property, Real Estate, technology, UK | Login |
| Apr 22, 2026 | Fund Letters | L1 Capital Long Short Fund | STO.AX | Santos Limited | Oil & Gas E&P | Oil, Gas & Consumable Fuels | Bull | Australian Securities Exchange | Australia, commodity, dividends, energy, growth, LNG, Oil & Gas, Production | Login |
| Apr 22, 2026 | Fund Letters | L1 Capital Long Short Fund | BSL.AX | BlueScope Steel Limited | Steel | Steel | Bull | Australian Securities Exchange | Industrial, materials, North America, premium, Steel, takeover, Value | Login |
| Apr 22, 2026 | Fund Letters | L1 Capital Long Short Fund | AZJ.AX | Aurizon Holdings Limited | Railroads | Road & Rail | Bull | Australian Securities Exchange | Australia, coal, defensive, dividends, Freight, infrastructure, Rail, Transport | Login |
| Apr 22, 2026 | Fund Letters | L1 Capital Long Short Fund | QAN.AX | Qantas Airways Limited | Airlines | Airlines | Bull | Australian Securities Exchange | Airlines, Australia, Cyclical, Domestic, Fuel, Loyalty, Travel | Login |
| Jan 15, 2026 | Fund Letters | Andrew Larke | AZJ AU | Aurizon Holdings Limited | Industrials | Rail Transportation | Bull | New York Stock Exchange | cashflow, infrastructure, Rail, Regulation, Volumes | Login |
| Jan 15, 2026 | Fund Letters | Andrew Larke | FTT CN | Finning International Inc. | Industrials | Industrial Machinery & Supplies | Bull | New York Stock Exchange | Copper, machinery, Margins, Mining, Operationalleverage | Login |
| Jan 15, 2026 | Fund Letters | Andrew Larke | LNW AU | Light & Wonder, Inc. | Consumer Discretionary | Casinos & Gaming | Bull | New York Stock Exchange | earnings, Gaming, litigation, rerating, Sentiment | Login |
| Jan 15, 2026 | Fund Letters | Andrew Larke | JHX AU | James Hardie Industries plc | Industrials | Building Products | Bull | New York Stock Exchange | Buildingproducts, Cyclicality, Housing, Margins, recovery | Login |
| Jan 15, 2026 | Fund Letters | Andrew Larke | BSL AU | BlueScope Steel Limited | Materials | Steel | Bull | New York Stock Exchange | cashflow, Cyclicality, infrastructure, Steel, tariffs, valuation | Login |
| Jan 15, 2026 | Fund Letters | Andrew Larke | LLOY LN | Lloyds Banking Group plc | Financials | Diversified Banks | Bull | New York Stock Exchange | banking, Costefficiency, Deposits, Margins, Rates | Login |
| Jan 15, 2026 | Fund Letters | Andrew Larke | WGX AU | Westgold Resources Limited | Materials | Gold | Bull | New York Stock Exchange | cashflow, Exploration, Gold, leverage, Productiongrowth | Login |
| Jan 15, 2026 | Fund Letters | Andrew Larke | FLT AU | Flight Centre Travel Group Limited | Consumer Discretionary | Travel Services | Bull | New York Stock Exchange | Competition, M&A, recovery, Sentiment, Travel | Login |
| Jan 15, 2026 | Fund Letters | Andrew Larke | MIN AU | Mineral Resources Limited | Materials | Diversified Metals & Mining | Bull | New York Stock Exchange | Asset_Sales, Commodities, deleveraging, Ironore, Lithium | Login |
| Oct 20, 2025 | Fund Letters | Andrew Larke | NXE CN | NexGen Energy Ltd. | Materials | Uranium | Bull | TSX | Canada, energy transition, Exploration upside, Low cost, Nuclear, Permitting, uranium | Login |
| Oct 20, 2025 | Fund Letters | Andrew Larke | HBM | Hudbay Minerals Inc. | Materials | Metals & Mining | Bull | NYSE | cash flow, Copper, infrastructure, Mining, Mitsubishi, Partnership, U.s. supply | Login |
| Oct 20, 2025 | Fund Letters | Andrew Larke | MIN | Mineral Resources Ltd. | Materials | Metals & Mining | Bull | Australian Securities Exchange | cash flow, diversification, Governance, infrastructure, Iron ore, Lithium, Mining | Login |
| Oct 20, 2025 | Fund Letters | Andrew Larke | NXE CN | NexGen Energy Ltd. | Materials | Uranium | Bull | TSX | Canada, energy transition, Exploration upside, Low cost, Nuclear, Permitting, uranium | Login |
| Oct 20, 2025 | Fund Letters | Andrew Larke | HBM | Hudbay Minerals Inc. | Materials | Metals & Mining | Bull | NYSE | cash flow, Copper, infrastructure, Mining, Mitsubishi, Partnership, U.s. supply | Login |
| Oct 20, 2025 | Fund Letters | Andrew Larke | MIN | Mineral Resources Ltd. | Materials | Metals & Mining | Bull | Australian Securities Exchange | cash flow, diversification, Governance, infrastructure, Iron ore, Lithium, Mining | Login |
| Oct 20, 2025 | Fund Letters | Andrew Larke | WTG AU | Westgold Resources Ltd. | Financials | Precious Metals | Bull | Australian Securities Exchange | Cost Reduction, Exploration, Fiscal deficits, Gold, inflation hedge, production growth | Login |
| Oct 20, 2025 | Fund Letters | Andrew Larke | WTG AU | Westgold Resources Ltd. | Financials | Precious Metals | Bull | Australian Securities Exchange | Cost Reduction, Exploration, Fiscal deficits, Gold, inflation hedge, production growth | Login |
| Jul 14, 2025 | Fund Letters | Andrew Larke | STO AU | Santos Limited | Energy | Oil, Gas & Consumable Fuels | Bull | New York Stock Exchange | energy, Free cash flow inflection, LNG, Project Development, takeover target, undervalued | Login |
| Jul 14, 2025 | Fund Letters | Andrew Larke | QAN AU | Qantas Airways Limited | Industrials | Airlines | Bull | New York Stock Exchange | Airlines, Fleet Upgrade, loyalty program, Structural Growth, Travel Recovery, valuation | Login |
| Jul 14, 2025 | Fund Letters | Andrew Larke | AIR FP | Airbus SE | Industrials | Aerospace & Defense | Bull | Euronext Stock Exchange | Aerospace, Defense, duopoly, margin expansion, Order Backlog, Supply Chain Recovery | Login |
| Jul 14, 2025 | Fund Letters | Andrew Larke | FTT CN | Finning International Inc. | Industrials | Trading Companies & Distributors | Bull | Toronto Stock Exchange | aftermarket, buybacks, Caterpillar Dealer, Copper, data centers, Mining Services, Power systems, valuation discount | Login |
| Jul 14, 2025 | Fund Letters | Andrew Larke | NXE CN | NexGen Energy Ltd. | Energy | Oil & Gas Exploration & Production | Bull | Toronto Stock Exchange | Development Stage, nuclear energy, strategic asset, supply deficit, uranium | Login |
| Jul 14, 2025 | Fund Letters | Andrew Larke | HBM CN | Hudbay Minerals Inc. | Materials | Metals & Mining | Bull | Toronto Stock Exchange | Copper, deleveraging, Gold, Mining, production growth, Project Development | Login |
| Jul 14, 2025 | Fund Letters | Andrew Larke | VEA AU | Viva Energy Group Limited | Energy | Oil, Gas & Consumable Fuels | Bull | New York Stock Exchange | Convenience Store, Energy Retail, Otr, Refining Margins, synergies, turnaround | Login |
| Jun 1, 2025 | Fund Letters | L1 Capital Long Short Fund | FTT.TO | Finning International | Capital Goods | Trading Companies & Distributors | Bull | Toronto Stock Exchange | aftermarket services, Canada, Caterpillar, Chile, Construction Equipment, copper mining, data centers, Dealer, Mining equipment, Power systems, Share Buybacks, South America, Value | Login |
| Dec 31, 2023 | Fund Letters | L1 Capital Long Short Fund | STO.AX | Santos Limited | Energy | Oil, Gas & Consumable Fuels | Bull | ASX | Australia, energy, merger, Oil & Gas, restructuring, undervalued, Value | Login |
| Dec 31, 2023 | Fund Letters | L1 Capital Long Short Fund | NEM | Newmont Corporation | Materials | Metals & Mining | Bull | NYSE | Copper, Gold, growth, market leader, Mining, Precious Metals | Login |
| Dec 31, 2023 | Fund Letters | L1 Capital Long Short Fund | WGX.AX | Westgold Resources Limited | Materials | Metals & Mining | Bull | ASX | Australia, Free Cash Flow, Gold, Mining, production growth, turnaround | Login |
| Dec 31, 2023 | Fund Letters | L1 Capital Long Short Fund | NUF.AX | Nufarm Limited | Materials | Chemicals | Bull | ASX | agriculture, Aquaculture, biotechnology, growth, Omega-3, Seed Technology | Login |
| Dec 31, 2023 | Fund Letters | L1 Capital Long Short Fund | CVE.TO | Cenovus Energy Inc | Energy | Oil, Gas & Consumable Fuels | Bull | TSX | Canada, capital return, energy, Free Cash Flow, Oil sands, Share Buybacks, Value | Login |
| Dec 31, 2023 | Fund Letters | L1 Capital Long Short Fund | CRH | CRH plc | Materials | Construction Materials | Bull | NYSE | construction materials, growth, infrastructure, market leader, North America, undervalued | Login |
| Dec 31, 2023 | Fund Letters | L1 Capital Long Short Fund | IMD.AX | Imdex Limited | Energy | Energy Equipment & Services | Bull | ASX | Drilling, growth, market leader, Mining Services, Mining Technology, technology | Login |
| Dec 31, 2023 | Fund Letters | L1 Capital Long Short Fund | CNU.NZ | Chorus Limited | Communication Services | Diversified Telecommunication Services | Bull | NZX | Dividend Growth, Fiber, infrastructure, Monopoly, New Zealand, telecommunications | Login |
| Dec 31, 2023 | Fund Letters | L1 Capital Long Short Fund | FLTR.L | Flutter Entertainment plc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | LSE | growth, iGaming, Market expansion, Sports betting, technology, US market | Login |
| Dec 31, 2023 | Fund Letters | L1 Capital Long Short Fund | AZJ.AX | Aurizon Holdings Limited | Industrials | Road & Rail | Bull | ASX | Australia, Coal Transport, Dividend Growth, infrastructure, Rail Infrastructure, regulated utility | Login |
| Sep 30, 2023 | Fund Letters | L1 Capital Long Short Fund | SVW.AX | Seven Group Holdings Limited | Industrials | Industrial Conglomerates | Bull | ASX | Australia, Boral, construction, Equity, industrial services, infrastructure, Mining equipment | Login |
| Sep 30, 2023 | Fund Letters | L1 Capital Long Short Fund | STO.AX | Santos Limited | Energy | Oil, Gas & Consumable Fuels | Bull | ASX | Australia, demerger, energy, Equity, LNG, Oil & Gas, Value | Login |
| Sep 30, 2023 | Fund Letters | L1 Capital Long Short Fund | CVE.TO | Cenovus Energy Inc | Energy | Oil, Gas & Consumable Fuels | Bull | TSX | Canada, energy, Equity, Free Cash Flow, Oil sands, refining, Share Buybacks | Login |
| Sep 30, 2023 | Fund Letters | L1 Capital Long Short Fund | JHX.AX | James Hardie Industries plc | Materials | Construction Materials | Bull | ASX | Australia, Building materials, construction, Equity, fiber cement, Housing, Margins | Login |
| Sep 30, 2023 | Fund Letters | L1 Capital Long Short Fund | WOR.AX | Worley Limited | Energy | Oil, Gas & Consumable Fuels | Bull | ASX | Australia, energy transition, Engineering services, Equity, Green Energy, Oil & Gas, Project Management | Login |
| TICKER | COMMENTARY |
|---|---|
| STO.AX | Santos shares rose in the March quarter driven by a more than doubling of the Brent Crude oil price from US$61/bbl to US$127/bbl. Global oil prices increased significantly due to the ongoing conflict in Iran, which has materially disrupted oil supply transiting via the Strait of Hormuz ~20% of the world's oil supply). The Strait remains effectively shut to non-Iranian vessels. Outside of the market environment, Santos continues to make significant progress on its key growth initiatives, with its Barossa project loading the first LNG cargo at the end of January 2026, and its Pikka project anticipating first oil in the coming weeks. The completion of these significant growth projects will conclude a multi-year period of elevated investment and represent an inflection point for earnings and dividends going forward. As a result, we believe Santos is well positioned to deliver attractive future returns and pass on the benefits of higher oil prices to shareholders. |
| BSL.AX | BlueScope shares rose during the quarter, after receiving two takeover offers from a consortium of SGH and Steel Dynamics. The first offer, received in January 2026 at A$30.00/sh, represented a 27% premium to the pre-offer date share price and was rejected by the Board of Directors of BlueScope. They stated, 'This proposal was an attempt to take BlueScope from its shareholders on the cheap. It drastically undervalued our world-class assets, our growth momentum, and our future – and the Board will not let that happen'. In February 2026, the Consortium offered a revised 'best and final' offer of A$32.35/sh, which was ex A$1.65/sh in dividends declared by the company since the initial offer ($34.00/sh including the dividends paid) representing a 47% adjusted premium. |
| AZJ.AX | Aurizon shares strengthened over the quarter, with the company announcing a solid operating result in line with previously issued guidance. A key feature of the result was confirmation that Aurizon sees declining growth capex requirements, underpinning improving free cash outcomes moving forward and supporting an increase in its forward dividend policy to a 90% payout ratio. Recently, Aurizon confirmed that it had reached a 10-year extension to the company's regulatory arrangements with miners for access to the Queensland rail network. The agreement, which is subject to approval by the Queensland Competition Authority, enhances long-term earnings and cash-flow certainty for Aurizon's Networks business. |
| QAN.AX | Qantas was weaker as investors became more focused on the near-term earnings impact from sharply higher fuel costs and the uncertainty created by disruption in global fuel markets due to the war in Iran. Qantas has responded to this volatility with a recovery through higher ticket prices and select trimming of capacity where appropriate, with demand remaining resilient so far. Separate to this, the RBA's review of card payment costs and charges created a modest overhang for the Loyalty business, with key changes being the removal of card surcharges and the reduction in the interchange fee cap on domestic credit cards. |
| JHX.AX | James Hardie declined during the period as rising inflation expectations and higher mortgage rates weighed on the outlook for housing activity. While the company has no direct exposure to the Iran conflict – given that approximately 80% of its sales are generated in North America – it may face indirect pressures. These include softer consumer confidence and elevated input costs, which are likely to act as near-term headwinds. James Hardie is currently trading at around 15x forward P/E, a notable discount to its 10-year average multiple of 21x. In our view, this dislocation presents an attractive entry point, with valuation more than compensating for the cyclical risks in the near term. |
| RMV.L | Rightmove shares were weaker during the quarter as concerns over the impact of AI on the longer-term growth prospects of classified businesses continued to weigh. This thematic was consistent with its Marketplace peers, as well as across Software names deemed susceptible to structural change. From a macro perspective, a more subdued outlook for U.K. housing and rising interest rate expectations has likely also had an impact on investor sentiment. While we continue to monitor the evolution of AI in the sector, we see Rightmove as being well placed to navigate the introduction of this technology given its strong market position – over 80% of real estate search traffic – which locks in positive network effects as the U.K.'s leading real estate marketplace. |
| CRH | Following 15-20% sell-offs, we increased our exposure to CRH and James Hardie. Both offer strong earnings growth over the medium-term at mid-teen multiples. |
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