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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
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"L1 Capital delivered 12.7% in Q2 2026 through concentrated positions in quality value stocks trading at 10x P/E with double-digit growth. Strong performance from Qantas, BlueScope, James Hardie, Hudbay and Goodman offset commodity weakness."
L1 Capital's Long Short Fund returned 12.7% in Q2 2026 (ASX200AI 4.0%), driven by broad-based gains across 13 positions that each contributed over 0.5%. The quarter was dominated by the Iran war and AI themes, with a ceasefire announcement driving oil prices down ~40% from April peaks while AI infrastructure stocks surged on robust earnings and hyperscaler capex forecasts exceeding US$1 trillion for 2027. The portfolio benefited from strong performance in Qantas (+27%) on lower jet fuel costs, BlueScope (+24%) on elevated U.S. steel spreads, James Hardie (+46%) on constructive FY27 outlook, Hudbay Minerals (+15%) on copper strength, and Goodman Group (+22%) on data centre opportunities. Gold and uranium positions detracted amid broader commodity weakness. The manager used market volatility to add to copper, construction materials, travel and gold equities at attractive valuations, while trimming infrastructure and materially reducing oil & gas exposure. The portfolio maintains a quality value tilt with median long positions at 10x P/E with double-digit EPS growth, concentrated in commodities, construction materials, infrastructure and select financials, positioned for a wide range of macro environments.
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