Key Takeaways
- • L1 Long Short Fund Limited (ASX: LSF) delivered a 7.0% net gain in May 2026, driven by strong performance in copper exposure and Qantas holdings, extending its winning streak.
- • The fund has achieved a 44.7% return over the past 12 months, positioning it among the best-performing hedge funds in Australia since inception in 2014.
- • Portfolio was negatively impacted by European market downturns and commodity price declines during May, indicating sector-specific headwinds despite overall monthly gains.
- • LSF maintains a diversified long-short strategy with predominantly Australian and New Zealand equity exposure, supplemented by global securities positions.
- • Fund offers a fully franked quarterly dividend with a Dividend Reinvestment Plan (DRP) allowing shareholders to acquire additional shares at a discount to market price without brokerage fees.
Summary
L1 Long Short Fund Limited (ASX: LSF), managed by L1 Capital, posted a 7.0% net gain in May 2026, driven principally by favorable movements in copper exposure and strength in its Qantas holdings. The May performance extends the fund's exceptional track record, which has generated a 44.7% return over the preceding 12 months—making LSF one of Australia's best-performing hedge funds and solidifying its position as a top performer since its inception in September 2014.
The fund's long-short strategy delivered gains despite concurrent headwinds in the investment environment. The portfolio was negatively impacted by weakness in European equity markets and declines in commodity prices during May, which weighed on several key holdings. However, the strength of specific positions—particularly copper-related investments and the Qantas airline holding—was sufficient to overcome these broader market pressures and drive the monthly gain.
LSF employs a fundamental research-driven approach, maintaining a diversified portfolio of both long and short positions with predominant exposure to Australian and New Zealand securities, complemented by selective global holdings. The fund's strategy aims to generate absolute returns across varying market conditions by capitalizing on security-specific opportunities identified through rigorous analysis.
The fund's investor base benefits from a fully franked quarterly dividend distribution, with performance calculated net of all fees. L1 Long Short Fund Limited's Dividend Reinvestment Plan permits shareholders to automatically reinvest distributions into additional LSF shares, typically acquired at a discount to prevailing market prices and without incurring brokerage charges. This structure provides investors with tax-efficient capital accumulation alongside income generation.
L1 Capital's recent positioning reflects a measured approach following an exceptionally strong 12-month performance period, with the firm actively managing risk and portfolio composition amid evolving market conditions in both domestic and international equity markets.
The fund's long-short strategy delivered gains despite concurrent headwinds in the investment environment. The portfolio was negatively impacted by weakness in European equity markets and declines in commodity prices during May, which weighed on several key holdings. However, the strength of specific positions—particularly copper-related investments and the Qantas airline holding—was sufficient to overcome these broader market pressures and drive the monthly gain.
LSF employs a fundamental research-driven approach, maintaining a diversified portfolio of both long and short positions with predominant exposure to Australian and New Zealand securities, complemented by selective global holdings. The fund's strategy aims to generate absolute returns across varying market conditions by capitalizing on security-specific opportunities identified through rigorous analysis.
The fund's investor base benefits from a fully franked quarterly dividend distribution, with performance calculated net of all fees. L1 Long Short Fund Limited's Dividend Reinvestment Plan permits shareholders to automatically reinvest distributions into additional LSF shares, typically acquired at a discount to prevailing market prices and without incurring brokerage charges. This structure provides investors with tax-efficient capital accumulation alongside income generation.
L1 Capital's recent positioning reflects a measured approach following an exceptionally strong 12-month performance period, with the firm actively managing risk and portfolio composition amid evolving market conditions in both domestic and international equity markets.
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