L1 Long Short Fund (LSF) H2 2024 earnings summary

Executive summary

• Achieved a 12.4% absolute return for the year ended 30 June 2024, outperforming the ASX200AI's 12.1% return; 3-year return of 11.9% p.a. and since inception return of 11.6% p.a. versus ASX200AI's 6.4% and 8.7% respectively.

• Maintained a disciplined, bottom-up investment approach, capitalizing on market volatility and sector rotations, especially in commodities and energy.

• Continued regular, fully franked dividend payments, with total FY24 dividends at 11.75 cents per share, up from 10.5 cents in FY23.

• Senior management increased their investment in the fund, reinforcing alignment with shareholders.

Financial highlights

• Net profit after tax was $170.3 million, up from $163.3 million in FY23.

• Operating profit before tax reached $227.0 million (FY23: $224.3 million).

• Net tangible asset backing before tax rose to $3.2064 per share (FY23: $2.9793).

• Net asset value increased to $1.92 billion (FY23: $1.80 billion).

• Basic and diluted EPS were 27.49 cents (FY23: 26.60 cents).

Outlook and guidance

• Equity markets seen as fully priced with narrow leadership; ongoing risks from consumer sentiment, geopolitics, and US elections.

• Focus remains on low P/E, cash-generative companies and select short opportunities in overvalued growth stocks.