L1 Global Long Short Fund (GLS) H1 2025 earnings summary

Executive summary

• Profit after tax for the half-year ended 31 December 2024 was $8.1 million, up from $1.0 million in the prior corresponding period.

• Pre-tax NTA return was 2.6%, underperforming the MSCI All Country World Net Index's 13.9% return for the same period.

• Total shareholder return for the half-year was 3.4%, reflecting a narrowing discount to NTA.

• A scheme of arrangement is proposed to exchange shares for units in PIXX, with implementation expected in late July 2025, subject to approvals.

• Investment team changes announced, with Ted Alexander to become Portfolio Manager and other senior leadership transitions effective March 2025.

Financial highlights

• Profit before tax: $11.6 million (vs $1.5 million in prior year period).

• Profit after tax: $8.1 million (vs $1.0 million prior year).

• Basic and diluted EPS: 2.74 cents (vs 0.35 cents prior year).

• Net assets: $446.5 million as at 31 December 2024 (virtually unchanged from 30 June 2024).

• Cash and cash equivalents at period end: $36.9 million (down from $56.7 million at 30 June 2024).

Outlook and guidance

• The Board continues to recommend the scheme of arrangement as being in shareholders' best interests, with implementation targeted for late July 2025.

• The investment manager notes ongoing challenges from low US/tech exposure and short positions, but highlights strong performance from Chinese holdings.