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 Australian Equities Fund is a large cap, long only Australian equities fund. The Fund typically invests in 25-35 high quality companies that are fundamentally undervalued and have a positive outlook. The Fund’s objective is to outperform the S&P / ASX200 Accumulation Index by at least 3% p.a. over the long term.

More Information

02

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).

More Information

03

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.

More Information

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.

More Information

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.

06

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.

More Information

L1 Capital Australian Equities Fund

  • 2.8% alpha p.a (net return since inception 8.6% versus 5.8% for the S&P / ASX200 Accumulation Index
  • One of the best performing large cap, long only funds in Australia.

Note: Performance data current as at 31 October, 2021

Fund Overview

Fund inception date 23 August 2007

Type of investments Australian shares

Large/small cap Large 70-90%, small 10-30%

Time Horizon At least 5 years

Investor type Retail/sophisticated/wholesale

Positions (typical) 25-35 positions

Cash levels (typical) 0-5%

Investment objective Outperform benchmark by 3% p.a. over rolling three year periods

Benchmark S&P ASX 200 Accum. Index

Tracking error (typical) 4-6%

Gearing No

Shorting No

Minimum investment AUD$25,000

Subscription Daily

Management Fee 0.77% inclusive of GST and RITC

Performance Fee 15.38% above ASX200AI



Fund Performance (%)

Period L1 Capital S&P/ASX200AI Outperformance
One Year 34.1% 28.0% 6.2%
Three Years (p.a) 10.3% 11.9% (1.6%)
Five Years (p.a) 10.3% 10.9% (0.6%)
Ten Years (p.a.) 8.3% 10.0% (1.7%)
Since Inception (p.a) 8.6% 5.8% 2.8%
Since Inception (cumulative) 223.7% 124.1% 99.6%
Net Performance as at 31 October, 2021 for the Monthly Class. Inception Date 23 August 2007. Past performance should not be taken as an indicator of future performance.

Monthly Performance ($100,000 invested since inception - Net)

How to invest

To invest in the L1 Capital Australian Equities 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.

L1 Capital Long Short Fund

  • 351.8% net return since inception
  • 23.4% net return p.a. since inception
  • Strong positive returns across a wide range of sectors.
  • Sharpe Ratio 1.1
  • Sortino Ratio 2.2

Note: Performance data current as at 31 October, 2021.

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%



HSBC SURVEY

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

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 35.6

Fund Performance vs Global Indices (Net)

Period Cumulative Return Annualised Return (p.a.)
L1 Capital Long Short Fund (Net) 351.8 23.4
S&P ASX 200 Accumulation Index 74.4 8.1
MSCI World Index Total Return (USD) 81.6 8.7
HFRX Global Hedge Fund Index 15.5 2.0
Net performance as at 31 Oct, 2021 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

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 34.4

Fund Performance* (%)

Fund (%) Index**(%) Excess (%)
1 Month 1.1 1.6 (0.5)
3 Month 1.5 1.6 (0.1)
1 Year 38.7 31.3 7.5
2 Years p.a. 20.2 15.9 4.2
Since Inception p.a. - 1 March 2019 19.6 16.3 3.2
Since Inception Cumulative - 1 March 2019 61.1 49.6 11.5
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 U.K. Residential Property Fund

Fund IV is now open to new investors.

  • 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 30 residential buildings, comprising more than 2,000 units, valued in excess of A$250m.
  • The performance of Funds I and II (which are now fully invested) has exceeded target returns.
  • An attractive asset class delivering a strong and defensive income yield with further upside from capital growth.
  • High calibre investment team with a track record of adding significant value regardless of general property market trends.

All comments as of 30 June 2020.

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 New York
  • 30.9% net return p.a. since inception
  • No negative months since inception

Note: Performance data current as at 31 October, 2017.

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

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.

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 23% p.a. since inception (net).
  • 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)

The Catalyst Fund will be headed by James Hawkins, who has over 20 years of professional experience advising boards and management. Prior to joining L1 Capital in 2021 James spent nearly ten years at Flagstaff Partners, where he was a Managing Director that originated and executed M&A, equity and debt transactions.

Prior to that, he worked at Macquarie Capital in Melbourne and New York where he was involved in a wide range of principal investments and investment banking transactions. Before that, James began his career as a solicitor at Clayton Utz. James is a generalist with experience covering a range of sectors including industrials, gaming, infrastructure, retail, education, mining services and financial 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 joined the L1 Catalyst Team as a Senior Investment Analyst in October 2021. Prior to joining L1, Benjamin spent over 10 years at management consultancy Bain & Company, based in Melbourne and London. He was an Associate Partner, focused on strategy and large-scale transformations, executing both growth and cost initiatives.

Benjamin was also a leader in the Private Equity Group, supporting financial investors and corporate clients on commercial and operational due diligences. Prior to that, Benjamin spent three years at J.P. Morgan in the Investment Banking team based in Melbourne, covering the Consumer and General Industrials sectors. He holds a Bachelor of Commerce and Bachelor of Information Systems from the University of Melbourne, and an MBA from London Business School.

Period L1 Capital S&P/ASX200AI Outperformance
One Month (2.5%) (0.1%) (2.4%)
Since Inception - 01 July 2021 13.2% 1.6% 11.6%
Net performance as at 31 Oct 2021. 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.