L1 Long Short Fund (LSF) H1 2026 earnings summary

Executive summary

• Achieved a net profit after tax of $414.9 million for the half-year ended 31 December 2025, reversing a prior year loss of $75.0 million, driven by strong absolute returns and outperformance of the Australian equity market.

• Operating profit before tax was $587.0 million, compared to a loss of $111.5 million in the same period last year.

• Investment strategy focused on long and short positions in predominantly Australian securities, with additional global exposure, aiming for positive absolute returns and capital preservation.

• Value-oriented, benchmark-unaware strategy capitalized on a broader range of mispriced opportunities as market leadership diversified.

Financial highlights

• Total income for the half-year was $823.8 million, with basic and diluted earnings per share of 65.80 cents, up from a loss per share of 12.02 cents last year.

• Net tangible asset (NTA) backing before tax per share rose to $3.9987 from $2.9417 year-over-year; after tax NTA per share was $3.6755.

• Performance fee of $151.1 million was accrued, reflecting outperformance above the high watermark.

• Interim dividend declared at 3.60 cents per share, fully franked at a 30% tax rate.

• Profit from ordinary activities rose to $823.8 million, up 2,877% year-over-year.

Outlook and guidance

• No specific forward-looking financial guidance provided, but the company continues to focus on delivering positive absolute returns and capital preservation.

• Portfolio considered to offer compelling value both in absolute terms and relative to broader indices.

• Well positioned to navigate ongoing macroeconomic uncertainty and capitalize on further market dislocations.