L1 Long Short Fund’s Q2 2026 Investor Letter

L1 Capital, an investment management firm, released its “L1 Long Short Fund” second-quarter 2026 investor letter.  The market’s main themes in the June quarter were the Iran conflict and developments in the AI sector. These trends shifted after oil prices declined due to a ceasefire agreement, leading to a reversal. AI stocks surged, driven by strong earnings, rapid capital investment, and critical supply shortages. During this period, the L1 Long Short Fund achieved notable gains, rising 12.7% compared to the ASX200AI’s 4.0%, with year-to-date returns at 12.5% versus 2.4%. U.S. equities outperformed, especially those benefiting from AI-related capital expenditure. The firm is satisfied with the portfolio’s positioning, emphasizing strong medium-term growth potential, supported by attractive valuations, solid earnings, and robust cash flow. In addition, you can check the Fund’s top five holdings to know its best picks in 2026.

A copy of L1 Long Short Fund’s Q2 2026 investor letter can be downloaded here.

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