L1 Long Short Fund Weathers Iran Shock as Volatility Opens Value Opportunities

L1 Long Short Fund Ltd. ( (AU:LSF) ) has shared an announcement.

L1 Long Short Fund reported a 7.8% portfolio decline in March, slightly underperforming the ASX200AI’s 7.1% fall, leaving the fund down 0.2% for the quarter but up 44.7% over the past year, far ahead of the index. The period was marked by a sharp global equity sell-off driven by the Iran war, a historic oil supply shock and surging bond yields, which hit gold miners, cyclicals and rate-sensitive stocks, though higher oil prices supported holdings such as Santos.

The manager said nearly half of ASX200 constituents dropped more than 10% in March, underscoring the breadth of the downturn, while gold prices fell unexpectedly despite geopolitical turmoil amid central-bank selling and heavy ETF outflows. While key positions such as gold equities, Qantas and James Hardie detracted from performance, L1 is using heightened volatility to add to what it sees as undervalued, high-quality names, noting the portfolio’s median long position trades on about nine times earnings with double-digit growth, and maintaining that current conditions offer attractive medium-term opportunities for investors.

More about L1 Long Short Fund Ltd.

L1 Long Short Fund Ltd., listed on the ASX as LSF, is an Australian-listed investment company running a long/short equity strategy across domestic and global markets. The portfolio invests in a mix of Australian, North American, European and Asian stocks, aiming to outperform the S&P/ASX 200 Accumulation Index through active stock selection and risk management.

Average Trading Volume: 590,333

Technical Sentiment Signal: Buy

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