Key Takeaways
- • L1 Global Long Short Fund Limited (ASX:GLS) delivered 18.9% net returns in the June 2026 quarter, outperforming the MSCI World Index by 5.2 percentage points (13.8% benchmark return), driven by broad-based stock selection across 26 contributing positions.
- • Since inception on 28 November 2025, the fund has achieved 57.0% annualized returns compared to the MSCI World's 20.9% per annum, generating 36.1 percentage points of annual outperformance over a seven-month period.
- • Portfolio performance was underpinned by strategic positioning during volatile geopolitical events (Iran conflict and ceasefire) and an AI-led equity market rally, with the fund's median long position trading at 10x price-to-earnings and exhibiting double-digit earnings per share growth with modest leverage.
- • Over the six-month period to 30 June 2026, GLS returned 10.6% net of fees, outperforming the MSCI World Index by 0.9 percentage points, with individual stock positions demonstrating diversified contribution patterns to overall returns.
- • The fund's Net Tangible Asset (NTA) reached $1.7709 per share, triggering a performance fee milestone and validating the effectiveness of L1 Capital's global long-short equity strategy since the vehicle's November 2025 listing on the Australian Securities Exchange.
Summary
L1 Global Long Short Fund Limited (ASX:GLS), managed by L1 Capital, has demonstrated significant outperformance relative to global equity benchmarks since its inception as an ASX-listed investment company in late November 2025. The fund returned 18.9% net of fees during the June 2026 quarter, exceeding the MSCI World Index's 13.8% return by 5.2 percentage points. This outperformance reflects the fund manager's disciplined approach to global equity selection across diversified international markets and sectors.
The most striking performance metric emerges from the fund's annualized track record since inception: GLS has delivered 57.0% per annum compared to the MSCI World's 20.9% per annum, generating 36.1 percentage points of annual outperformance. This seven-month performance trajectory positions the fund substantially above typical long-only equity index returns, despite operating in a period marked by significant market volatility stemming from geopolitical tensions and subsequent policy shifts. The June quarter specifically benefited from broad-based stock selection gains across 26 individual positions, each contributing more than 0.5% to quarterly returns, indicating effective portfolio diversification and stock-picking discipline rather than concentrated bets.
Portfolio composition reflects the fund manager's fundamental research methodology. The median long position trades at 10x price-to-earnings multiples with double-digit earnings per share growth forecasts and modest debt levels, suggesting a valuation-conscious approach focused on quality compounders. Over the six-month period ending 30 June 2026, the fund returned 10.6% net of fees, outperforming the MSCI World Index by 0.9 percentage points, though the June quarter's 18.9% return indicates accelerating momentum and the effectiveness of the fund's positioning during the AI-driven equity rally that characterized H2 2026.
The achievement of a Net Tangible Asset value of $1.7709 per share triggered a performance fee milestone, validating the fund's investment thesis and providing institutional investors with tangible evidence of capital generation through disciplined long-short equity exposure. This performance, particularly during a period encompassing the Iran conflict, subsequent ceasefire, and sustained AI infrastructure investment demand, demonstrates the strategy's ability to navigate macroeconomic uncertainty while maintaining consistent alpha generation relative to global equity benchmarks.
The most striking performance metric emerges from the fund's annualized track record since inception: GLS has delivered 57.0% per annum compared to the MSCI World's 20.9% per annum, generating 36.1 percentage points of annual outperformance. This seven-month performance trajectory positions the fund substantially above typical long-only equity index returns, despite operating in a period marked by significant market volatility stemming from geopolitical tensions and subsequent policy shifts. The June quarter specifically benefited from broad-based stock selection gains across 26 individual positions, each contributing more than 0.5% to quarterly returns, indicating effective portfolio diversification and stock-picking discipline rather than concentrated bets.
Portfolio composition reflects the fund manager's fundamental research methodology. The median long position trades at 10x price-to-earnings multiples with double-digit earnings per share growth forecasts and modest debt levels, suggesting a valuation-conscious approach focused on quality compounders. Over the six-month period ending 30 June 2026, the fund returned 10.6% net of fees, outperforming the MSCI World Index by 0.9 percentage points, though the June quarter's 18.9% return indicates accelerating momentum and the effectiveness of the fund's positioning during the AI-driven equity rally that characterized H2 2026.
The achievement of a Net Tangible Asset value of $1.7709 per share triggered a performance fee milestone, validating the fund's investment thesis and providing institutional investors with tangible evidence of capital generation through disciplined long-short equity exposure. This performance, particularly during a period encompassing the Iran conflict, subsequent ceasefire, and sustained AI infrastructure investment demand, demonstrates the strategy's ability to navigate macroeconomic uncertainty while maintaining consistent alpha generation relative to global equity benchmarks.
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