Key Takeaways
- • L1 Gold Fund delivered a net 235% return over the February 2025–August 2026 period, significantly outperforming traditional gold ETFs and broader market indices through a long-short strategy combining gold equities with gold futures hedges.
- • The Melbourne-based L1 Group, which manages approximately $14 billion in assets under management, achieved these returns while gold bullion itself gained 55% during the same period, demonstrating alpha generation through active management and tactical positioning.
- • L1 Gold Fund Limited (ASX: LGF) is structured as a listed investment company providing retail and institutional investors exposure to an actively managed portfolio of long positions in gold-related securities paired with short positions in gold futures.
- • Fund managers Raphael Lamm and Mark Landau designed the strategy to capitalize on market dislocations, using gold price declines as opportunities to add to positions rather than reduce exposure during volatility.
- • The fund's performance significantly outpaced the S&P/ASX 200 Index (10.3% return) and demonstrated resilience through periods of market stress, including Iran War–related volatility that impacted other strategies.
Summary
L1 Gold Fund Limited, part of the Melbourne-based L1 Group, generated a 235% net return over the 19-month period from February 2025 through August 2026, establishing the strategy as a top-performing hedge fund during a period of sustained precious metals appreciation. The fund's return substantially exceeded the 55% gain in gold bullion itself over the same interval, demonstrating that the fund's long-short structure—pairing long positions in gold-related equities with short positions in gold futures—created measurable alpha beyond commodity price appreciation alone.
Managed by Raphael Lamm and Mark Landau, the fund employs an active management approach designed to exploit inefficiencies and dislocations between gold equities and physical bullion. Rather than retreating during market weakness, the fund's stated strategy involves using gold price declines as entry opportunities to add to equity positions, a tactical approach that proved effective during periods of volatility including geopolitical disruptions. This contrarian positioning contributed materially to outperformance relative to traditional gold-tracking ETFs and the broader Australian equity market.
L1 Group, managing approximately $14 billion in total assets, positioned the L1 Gold Fund as a listed investment company on the ASX (ticker: LGF) to provide investors with access to the actively managed strategy. The fund structure enabled retail and institutional investors to gain exposure to the long-short gold strategy without requiring large minimum investments typical of unlisted hedge funds. The fund's performance—returning 235% net of all applicable fees and charges—establishes a compelling track record for investors seeking alternative exposure to precious metals beyond simple bullion ownership or passive equity indices.
The significant outperformance relative to the S&P/ASX 200 Index's 10.3% return during the same period underscores the value of active management and hedging discipline in commodity-exposed strategies, particularly when managers possess conviction and tactical flexibility to adjust positioning based on market dislocations between correlated but distinct asset classes.
Managed by Raphael Lamm and Mark Landau, the fund employs an active management approach designed to exploit inefficiencies and dislocations between gold equities and physical bullion. Rather than retreating during market weakness, the fund's stated strategy involves using gold price declines as entry opportunities to add to equity positions, a tactical approach that proved effective during periods of volatility including geopolitical disruptions. This contrarian positioning contributed materially to outperformance relative to traditional gold-tracking ETFs and the broader Australian equity market.
L1 Group, managing approximately $14 billion in total assets, positioned the L1 Gold Fund as a listed investment company on the ASX (ticker: LGF) to provide investors with access to the actively managed strategy. The fund structure enabled retail and institutional investors to gain exposure to the long-short gold strategy without requiring large minimum investments typical of unlisted hedge funds. The fund's performance—returning 235% net of all applicable fees and charges—establishes a compelling track record for investors seeking alternative exposure to precious metals beyond simple bullion ownership or passive equity indices.
The significant outperformance relative to the S&P/ASX 200 Index's 10.3% return during the same period underscores the value of active management and hedging discipline in commodity-exposed strategies, particularly when managers possess conviction and tactical flexibility to adjust positioning based on market dislocations between correlated but distinct asset classes.
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.