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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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L1 Capital Long Short Fund 2026 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (L1 Capital Long Short Fund)

Primary Source Intelligence • Q1 2026 Letter Analysis

L1 Capital Long Short Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, L1 Capital Long Short Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+0%

YTD+0%

Annualized+11%

Positioning StanceNEUTRAL

GeographyGlobal

Digest Analysis

Quick Take

"L1 Capital navigated Iran war volatility by rotating from outperforming energy into discounted quality names across gold, copper, and construction materials."

Executive Summary

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.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

68%

CautiousHigh

Moderate (68%)

The fund demonstrates moderate-high conviction through specific position sizing actions (adding to named positions like CRH and James Hardie, trimming energy), detailed valuation metrics (9x FY27 P/E, <6x P/E for gold positions, <5x EV/EBITDA for copper), and clear thesis articulation for each sector. The 74 total positions with 59 longs suggests diversified but focused approach with conviction in specific themes.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager views current market volatility as creating outstanding medium-term opportunities and describes the portfolio as particularly attractive at present. While acknowledging near-term macro headwinds from the Iran war and stagflation risks, they frame this as providing exceptional entry points for quality companies.

Risk Appetite

40%

DefensiveAggressive

Defensive (40%)

The fund actively deployed capital during the March sell-off, adding to positions in gold, copper, construction materials and travel while trimming outperforming energy and infrastructure names. This demonstrates selective risk-taking and opportunistic positioning despite elevated volatility.

Capital Deployment

25%

De-riskingDeploying

De-risking (25%)

The fund actively rotated capital during March, adding to positions in gold, copper, construction materials and travel stocks while trimming energy and infrastructure exposure. This represents active rebalancing and selective deployment rather than net cash deployment, indicating moderate positive deployment activity.

Forward Guidance

35%

CautiousExpansionary

Cautious (35%)

The manager explicitly states they are using elevated volatility to identify high quality companies trading far below fair value and are positioning for medium-term opportunities. They express confidence in current portfolio positioning with attractive valuations and growth characteristics.

Language Signal

15%

BearishBullish

Bearish (15%)

Language is balanced between opportunity and risk recognition. Positive terms include outstanding opportunities, attractive entry points, compelling valuations, and exceptional prices. Risk language covers stagflation, volatility, disruption, and structural threats. Overall slightly more opportunity-focused than risk-focused.

Perceived Risk

75%

Low RiskElevated

Elevated Risk (75%)

The manager identifies multiple significant risks including the worst oil supply shock in modern history, growing stagflation risks, structural AI threats to software companies, and extreme market volatility with 89% of stocks declining in March. These risks are discussed in detail with specific impact analysis.

Opportunity Density

70%

ScarceAbundant

Abundant (70%)

The manager sees abundant opportunities across multiple sectors, describing the current environment as providing outstanding medium-term opportunities to invest in great companies at exceptional prices. They identify specific opportunities in gold, copper, construction materials, and travel while noting attractive portfolio-wide valuations.

Time Horizon

65%

Short-TermLong-Term

Multi-Year (65%)

The fund emphasizes medium-term opportunities and long-term structural themes like electrification and infrastructure growth. They discuss multi-year demand profiles for copper and long-term drivers for gold, suggesting a 2-5 year investment horizon for thesis realization while acknowledging near-term volatility.