Our Funds
 

L1 Capital is committed to offering clients best of breed investment products that can deliver exceptional risk adjusted returns. The entire investment team is significantly invested across L1 Capital products.

L1 Capital investment products:

01

L1 Capital Long Short Fund is an absolute return fund that offers investors a highly diversified portfolio of long and short positions based on our fundamental bottom-up research process. The Fund’s objective is to deliver a net return of at least 10% p.a. to investors with considerably less market risk and volatility (on average).

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02

L1 Capital International Fund was launched in March 2019 and aims to deliver attractive risk-adjusted returns over a long-term investment horizon by investing in high quality companies that it understands well and that have favourable cashflow-based valuations. The portfolio is concentrated with between 20-40 high conviction positions.

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03

L1 Capital Catalyst Fund is a high conviction, long-only equities fund focused on unlocking company value through shareholder activism. The Catalyst Fund invests in a concentrated portfolio of stocks that offer a compelling combination of value and quality with a major positive catalyst to drive investor returns.

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04

L1 Capital U.K. Residential Property Fund invests in high-yielding residential assets that can deliver strong and growing income, along with significant capital appreciation. It does this by acquiring underperforming or undermanaged UK property assets outside of London, at a discount, repositioning these assets and/or managing the assets more actively. At the appropriate time, the Fund will then sell these assets whether via break up to the retail market or as a portfolio to an institutional investor.

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05

L1 Capital Global Opportunities Fund (USD) applies rigorous fundamental analysis to invest in small to mid-capitalisation securities around the world across the capital structure. It uses macro themes to identify its investment targets then structures its portfolio to have low correlation to common equity and bond benchmarks and downside protection through multi layered risk management. The fund is also known for its investments in listed Special Purpose Acquisition Companies (“SPACs”) through which it backs management teams with the potential to make accretive acquisitions. The fund is currently closed to new investors.

Units in the Fund cannot be offered or sold within the US, sold to, or for the account of or benefit of ‘US persons’ (as defined in Regulation S of the US Securities Act 1933).

L1 Capital Long Short Fund

  • 311.8% net return since inception
  • 19.6% net return p.a. since inception
  • Strong positive returns across a wide range of sectors.

Note: Performance data current as at 31 July, 2022.

Fund Overview

Fund inception date 1 September 2014

Type of investments Australian shares, international shares, index futures, equity derivatives

Investment objective 10% p.a. net return over the long term

Time horizon At least 5 years

Investor type Retail/sophisticated/wholesale

Benchmark None

Gearing Yes

Shorting Yes

Access via Unit Trusts and LIC

Positions (typical) 50-100 positions

International exposure 10-30%

Typical net exposure 30-100%

Max net exposure 150%

Max gross exposure 300%



ALTS. INV. AWARDS

2021 Winner: Alternative Investment Manager of the Year & Best Listed Alternative Investment Product (ASX:LSF)

HSBC SURVEY

‘Best Performing Hedge Fund Globally’ in 2015 and ‘Top 20 Hedge Fund Globally’ in 2016, 2017 and 2021

EUREKAHEDGE

Winner ‘Best Asian Long/Short Equity Fund’ in 2017, Ranked Top 5 for returns in 2020 for large APAC-based HFs

Zenith Awards

Winner Professional Planner | Zenith Fund Awards ‘Australian Equities – Alternative Strategies’ 2017

Monthly Performance (Net)

Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2014 - - - - - - - - (2.4) 3.0 2.9 1.6 5.1
2015 0.6 9.1 2.4 1.7 3.7 (0.9) 3.3 2.1 5.5 8.5 8.1 4.6 60.5
2016 5.8 0.6 5.5 2.5 2.8 (0.9) 3.2 3.9 0.5 (0.2) 0.6 2.1 29.4
2017 2.5 1.8 2.8 1.0 4.1 1.7 2.6 1.7 1.9 2.5 0.8 3.5 30.5
2018 0.5 (0.5) (1.7) 1.6 (3.8) (6.3) 0.8 (5.9) (2.1) (4.0) (2.6) (6.1) (26.6)
2019 4.3 5.1 0.2 2.8 (2.8) 3.8 1.2 0.4 2.6 3.3 0.3 2.2 25.9
2020 (7.8) (7.1) (23.0) 22.9 11.0 (2.2) (2.0) 10.0 0.5 (2.6) 30.8 4.3 26.5
2021 (0.1) 9.1 (0.1) 5.0 4.1 (0.6) 1.8 5.2 4.8 2.3 (7.2) 3.6 30.4
2022 2.7 7.0 1.4 3.3 0.1 (13.7) (4.7) (5.2)

Fund Performance vs Global Indices (Net)

Period Cumulative Return Annualised Return (p.a.)
L1 Capital Long Short Fund (Net) 311.8 19.6
S&P ASX 200 Accumulation Index 69.8 6.9
MSCI World Index Total Return (USD) 57.1 5.9
HFRX Global Hedge Fund Index 9.3 1.1
Net performance as at 31 July 2022 for the Daily Class. Inception Date 3 October 2016. Data prior to that date relates to the Monthly Class which has a different fee structure, inception date 1 September 2014. Past performance should not be taken as an indicator of future performance.

Monthly Class

Fund inception date 1 September 2014

Minimum investment AUD$500,000

Subscription Monthly

Management fee 1.28% p.a. including GST less RITCs

Performance fee 20.5%

Daily Class

Fund inception date 3 October 2016

Minimum investment AUD$25,000

Subscription Daily

Management fee 1.54% p.a. including GST less RITCs

Performance fee 20.5%

Listed Investment Company (LIC)

Fund inception date 24 April 2018

Subscription Listed on ASX

Website www.L1longshort.com

Management fee 1.44% p.a. including GST less RITCs

Performance fee 20.0%

Cayman Fund (USD)

Fund inception date 5 January 2017

Minimum investment USD$250,000

Subscription Monthly

Management fee 1.25% p.a.

Performance fee 20.0%

How to invest

To invest in the L1 Capital Long Short Fund please download and read the appropriate PDS (above) and complete the application form.

You can also contact us for further assistance.

L1 Capital International Fund

  • L1 Capital International believes that quality and value are the key drivers of long-term shareholder returns and applies a detailed fundamental investment process.
  • Capital preservation over the investment horizon is central to our investment philosophy and process.
  • Please visit www.L1International.com for additional information on this Fund.

 

Fund Overview

Fund inception date 1 March 2019

Type of investments High quality global leading companies

Investor type Retail/sophisticated/wholesale

Benchmark MSCI World Net Total Return Index in AUD

Minimum investment AUD$25,000

Subscription Daily

Investment objectives Outperform Benchmark over rolling five year periods (net of fees) and deliver attractive risk-adjusted returns over a medium to long term investment horizon whilst lowering the risk of a permanent loss of capital

Positions 20-40

Cash levels 0-25%, typically around 10%

Gearing No

Shorting No

FX Exposure Unhedged

Management Fee 1.2% inclusive of GST and RITC

Performance Fee 15% above MSCI World Net Total Return Index in AUD subject to any underperformance being recouped. There must be positive absolute performance (adjusted for distributions) in the Performance Period (otherwise positive relative performance is carried forward to the next Performance Period)



Monthly Net Performance (%)

Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2019 - - 0.8 5.8 (2.7) 4.4 2.8 1.5 (0.5) (0.8) 4.9 (1.4) 15.4
2020 6.0 (2.6) (8.9) 2.0 3.6 (2.6) 1.5 3.8 (0.3) (1.1) 3.5 (0.3) 3.8
2021 6.1 2.9 5.4 5.9 (0.2) 5.5 3.4 4.6 (4.1) 1.1 3.8 1.1 41.1
2022 (4.1) (5.6) (4.3) (3.6) (0.4) (6.4) 10.2 (14.2)

Fund Performance* (%)

Fund (%) Index**(%) Excess (%)
1 Month 10.2 6.4 +3.8
1 Year (8.6) (4.3) (4.3)
3 Years p.a. 9.2 9.1 +0.1
Since Inception p.a. - 1 March 2019 11.5 10.6 +1.0
Since Inception Cumulative - 1 March 2019 45.2 40.9 +4.2
Numbers may not add due to rounding. Past performance should not be taken as an indicator of future performance.
** MSCI World Net Total Return Index in AUD. Returns measured from Index close on 1 March 2019.

How to invest

To invest in the L1 Capital International Fund please download and read the PDS and complete the application form.

Please read the Reference Guide which forms part of the PDS.

You can also contact us  for further assistance. Further information is available at www.L1International.com.

L1 Capital Catalyst Fund

The Catalyst Fund:

  • is a high conviction, activist fund that seeks to deliver positive catalysts that unlock major share price upside for investors.
  • invests in a small number of companies at any one time, ensuring the team has market-leading company and industry knowledge and is fully focused on providing value-adding opportunities to company boards and management teams.
  • is able to leverage the knowledge, experience and relationships of L1 Capital’s Australian equities investment team.
  • is focused on delivering improved ESG outcomes at ASX200 corporates. The Fund uses shareholder activism to enhance corporate governance and protect the interests of shareholders.

The Catalyst Fund is truly unique:

  • Track record – One of the most respected and best performing hedge fund managers in Australia. The L1 Capital Long Short Fund has returned more than 25% p.a. (net) in 6 out of the last 7 calendar years.
  • Scale – Successful activist investing generally requires the fund to have sufficient scale to build a meaningful stake, have access to management, board and other institutional shareholders and the resources to dedicate to an activist campaign.  L1 Capital manages ~$4b in its Australian Equities Funds, enabling the Group to be a significant shareholder and have access to all relevant stakeholders.
  • Resourcing – Fully resourced investment team with deep experience, knowledge and relationships across the entire Australian market.
  • Alignment – Total alignment with investors.  The investment team has invested significant personal wealth into the Fund alongside investors.

L1 Capital Catalyst Fund Team

James Hawkins
James Hawkins
Partner & Head of Catalyst Fund
B.Laws (Hons)/ B.Comm (Finance)

James is a Partner and Head of the Catalyst Fund. Prior to joining L1 Capital in 2021 James spent nearly ten years at Flagstaff Partners, where he was a Managing Director and Equity Partner that originated and executed M&A, equity and debt transactions. Previously, he worked at Macquarie Capital in Melbourne and New York where he was involved in several successful principal investments and a wide range of investment banking transactions after beginning his career at Clayton Utz as a solicitor. James is a generalist with experience covering a wide range of sectors including industrials, gaming, infrastructure, retail, education and mining services. James holds a double degree in Law and Commerce from Monash University, with Honours in Law.

Benjamin Ng
Benjamin Ng
Senior Investment Analyst
B.Com & Info Sys, (Accounting and Finance), MBA

Benjamin is a Senior Investment Analyst within the L1 Capital Catalyst Team. Prior to joining L1, Benjamin spent 10 years at management consultancy Bain & Company, where he was as an Associate Partner based in Melbourne and London. Prior to that Benjamin spent nearly 4 years in investment banking at J.P. Morgan in Melbourne. He holds a Bachelor of Commerce and Information Systems, Accounting and Finance from the University of Melbourne and an MBA from the London Business School.

Mihali Stamatis
Mihali Stamatis
Investment Analyst
B.Com (Finance and Economics)

Mihali is an Investment Analyst within the L1 Capital Catalyst Team. Prior to joining L1, Mihali worked in public equities for Ontario Teachers’ Pension Plan in London and in the Investment Banking Group of Goldman Sachs in the Consumer, Retail & Healthcare team in London and the Natural Resources team in Perth. He holds a Bachelor of Commerce, Finance and Economics, from the University of Western Australia.

Monthly Net Performance (%)

Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2021 - - - - - - 2.2 9.3 3.9 (2.5) (2.4) 5.6 16.7
2022 (4.2) 2.7 5.9 4.1 (2.6) (10.3) 2.4 (2.8)
Net performance as at 31 July 2022. Inception Date 1 July 2021. Figures may not sum exactly due to rounding. Past performance should not be taken as an indicator of future performance.

Fund Performance* (%)

Fund (%) Index**(%) Excess (%)
3 Months (10.5) (6.0) (3.3)
6 Months 1.4 1.7 (4.5)
12 Months 10.9 (2.2) +13.1
Since Inception p.a. - 01 July 2021 12.3 (1.0) +13.3
Since Inception cumulative - 01 July 2021 13.4 (1.1) +14.5
Net performance as at 31 July 2022. Inception Date 1 July 2021. Figures may not sum exactly due to rounding. Past performance should not be taken as an indicator of future performance.

How to invest

For further information on how to invest in the L1 Capital Catalyst Fund, please contact us.

L1 Capital U.K. Residential Property Fund

  • The objective of the Fund is to deliver clients a net return of at least 10% p.a., including a dividend yield of 6% p.a. (after fees and expenses, before tax).
  • The team now manages over 40 residential buildings, comprising approximately 1,500 units, valued in excess of A$200m.
  • An attractive asset class delivering a strong and defensive income yield with further upside from capital growth.
  • High calibre investment team with seeking to add significant value regardless of general property market trends.

All comments as of 31 March 2022.

Please click here if you would like more information.

Fund Overview

Investment Opportunity

L1 Capital believes the outlook for U.K. residential property (excluding London) offers a compelling opportunity. The combination of high rental yields, low borrowing costs and attractive long-term supply-demand dynamics makes for an attractive investment case. To take advantage of the opportunity, L1 Capital is launching its fourth U.K. Residential Property Fund, having successfully been investing in the strategy since September 2017. The investment strategy is centred on purchasing large blocks of fully tenanted apartments in Tier-1 U.K. cities, adding value throughout the purchase and asset management process.

Investment Objective

The objective of the Fund is to deliver clients a minimum net return of 10% p.a., including a dividend yield of 6% p.a. (after fees and expenses, before tax).

Investment Strategy

The Fund’s strategy is focused on investing in existing and fully tenanted modern residential property in major U.K. cities (excluding London) that provide an attractive and reliable income stream with the potential for capital growth. The Fund typically purchases in bulk and is able to transact at a significant discount to open market values (~20% discount) and rebuild costs (30-40%).



How to invest

The L1 Capital U.K. Residential Property Fund is now closed to new investment. For more information on the team and strategy, please visit www.L1Property.com.

 

To find out more, please click here and one of our Investment Specialists will be in touch with you.

L1 Capital Global Opportunities Fund

  • Convertibles and deal structuring fund.
  • Managed by David Feldman in Miami.
  • 34.2% net return p.a. since inception.

Note: Performance data current as at 31 May 2022.

Fund Overview

Fund closed Fund closed

Fund inception date 1 June 2015

Geographic exposure Global

Investment objective 10% p.a. net return over the long term

Benchmark None

Investment Focus Primary market transactions including events, convertibles and new issues

Time Horizon At least 5 years

Minimum investment Fund closed

Subscription Fund closed

Management Fee 2%

Performance Fee 20%



Eurekahedge

Finalist ‘Best Asian Multi-Strategy Fund’ 2017

Monthly Performance (Net)

Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2015 6.30% 1.13% 1.36% 0.16% 9.90% 10.47% 2.54% 35.84%
2016 1.43% 0.71% 1.26% 1.25% 0.72% 0.78% 2.21% 1.54% 0.83% 1.47% 2.59% 2.14% 18.28%
2017 1.88% 2.56% 0.86% 0.48% 0.72% 1.14% 0.95% 2.14% 2.76% 4.33% 19.25%
Net Performance as at 31 October 2017. Inception Date 01 June 2015. Past performance should not be taken as an indicator of future performance.

Monthly Performance (Net)

Net Performance as at 31 October 2017. Inception Date 01 June 2015.
Past performance should not be taken as an indicator of future performance.

How to invest

Units in the L1 Capital Global Opportunities Fund cannot be offered or sold within the US, sold to, or for the account of or benefit of ‘US persons’ (as defined in Regulation S of the US Securities Act 1933).

Please note this Fund is currently closed to new and additional investments.

Please contact us if you would like to be informed if/when the fund reopens.