Key Takeaways
- • L1 Long Short Fund (ASX:LSF) delivered a 45.40% return for the financial year ending 30 June 2026, significantly outperforming the ASX200AI benchmark which returned 4.0% in the June quarter alone.
- • The fund achieved 12.7% returns in the June 2026 quarter and 12.5% year-to-date calendar performance, demonstrating sustained outperformance across multiple measurement periods.
- • Portfolio discipline and risk-adjusted positioning drove exceptional performance, with the fund maintaining a long-short investment strategy designed to deliver positive returns across market cycles.
- • Net Tangible Asset (NTA) backing reached $4.870 as of 28 August 2026, with the share price trading at AUD $4.69 on 10 July 2026, reflecting investor confidence in the fund's track record.
- • The stock has appreciated 57.91% from its prior trading levels, indicating strong investor demand and validation of the fund's risk management approach amid volatile market conditions.
Summary
L1 Long Short Fund Limited (ASX:LSF) concluded FY26 with exceptional performance, posting a 45.40% return for the year ending 30 June 2026—a result that underscores the effectiveness of its disciplined portfolio management strategy in navigating volatile market conditions. This substantial outperformance came as the broader ASX200AI index delivered only 4.0% returns during the final quarter, highlighting the fund's ability to generate alpha through selective long and short positioning.
The fund's consistent execution across multiple timeframes reinforced its track record. The June quarter alone produced 12.7% returns, while calendar year-to-date performance reached 12.5%, demonstrating that the exceptional full-year result reflected sustained operational excellence rather than a single period of outperformance. Prior months showed variable but generally positive performance, with April delivering 6.2% returns (compared to 2.2% for the ASX200AI) and February posting -0.9%, illustrating the fund's realistic navigation of monthly volatility while maintaining long-term value creation.
The market has responded positively to these results. As of 10 July 2026, LSF traded at AUD $4.69, up 2.63% during afternoon trading, with the stock appreciating 57.91% from previous levels. The fund's Net Tangible Asset backing stood at $4.870 as of 28 August 2026. The long-short strategy—designed to achieve "strong, positive, risk-adjusted returns over the long term" with a 5+ year investment horizon—has proven effective in delivering returns that compensate for risk while protecting capital during market downturns.
The emphasis on portfolio discipline appears central to LSF's performance narrative. By maintaining systematic exposure management across long and short positions, the fund has insulated investors from broader market weakness while capitalizing on tactical opportunities. This structural approach has attracted institutional capital and validated the long-short hedge fund model during a period when many traditional equity strategies faced headwinds.
The fund's consistent execution across multiple timeframes reinforced its track record. The June quarter alone produced 12.7% returns, while calendar year-to-date performance reached 12.5%, demonstrating that the exceptional full-year result reflected sustained operational excellence rather than a single period of outperformance. Prior months showed variable but generally positive performance, with April delivering 6.2% returns (compared to 2.2% for the ASX200AI) and February posting -0.9%, illustrating the fund's realistic navigation of monthly volatility while maintaining long-term value creation.
The market has responded positively to these results. As of 10 July 2026, LSF traded at AUD $4.69, up 2.63% during afternoon trading, with the stock appreciating 57.91% from previous levels. The fund's Net Tangible Asset backing stood at $4.870 as of 28 August 2026. The long-short strategy—designed to achieve "strong, positive, risk-adjusted returns over the long term" with a 5+ year investment horizon—has proven effective in delivering returns that compensate for risk while protecting capital during market downturns.
The emphasis on portfolio discipline appears central to LSF's performance narrative. By maintaining systematic exposure management across long and short positions, the fund has insulated investors from broader market weakness while capitalizing on tactical opportunities. This structural approach has attracted institutional capital and validated the long-short hedge fund model during a period when many traditional equity strategies faced headwinds.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.