L1 Long Short Fund stock: October return fell 2.3%

Published on 11/11/2026 at 01:51 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

L1 Long Short Fund stock faced a weaker October as market leadership shifted away from resources and technology. The portfolio remained ahead year to date.

October performance and portfolio positioning

The portfolio returned 13.7 percent net in 2026 through October, ahead of the ASX 200 AI.
Mineral Resources and Lloyds weighed on October performance, while The Lottery Corporation contributed positively.
The fund remained conservatively positioned amid inflation, rate and geopolitical risks.

L1 Long Short Fund, AU0000002339, Illustration mit AI erstellt.

L1 Long Short Fund reported a net portfolio return of minus 2.3 percent for October, according to the company's October monthly report released on November 9, 2026. The ASX 200 AI gained 1.4 percent during the month, leaving the long-short portfolio 3.7 percentage points behind the benchmark.

October pullback followed strong gains

Despite the monthly decline, the portfolio returned 13.7 percent net in the first ten months of 2026, compared with 5.2 percent for the ASX 200 AI. Over the twelve months to October, the portfolio gained 26.8 percent while the benchmark rose 3.7 percent. All performance figures were reported net of fees.

The manager said the Australian market benefited from lower exposure to artificial-intelligence stocks as global enthusiasm for the theme weakened. Utilities, financials and healthcare led the local market, while materials and information technology declined.

Commodity exposure weighed on returns

Mineral Resources fell 15.7 percent during October as iron ore and lithium prices weakened, making it a major detractor from portfolio performance. Lloyds also detracted after an increase in bank surcharges and investor disappointment with its third-quarter results.

The Lottery Corporation was among the positive contributors. Its shares benefited from a large Powerball jackpot and lower long-term bond yields, which supported expectations for improved revenue trends in the current half.

The manager said the fund remained conservatively positioned as inflation stayed elevated, employment conditions softened and geopolitical risks persisted. The report also highlighted pressure on Australian consumers from higher fuel prices, interest rates, lower house prices and weaker job security.

Fund structure and investment mandate

L1 Long Short Fund is a listed investment company managed by L1 Capital. It invests predominantly in Australian and New Zealand securities, can allocate up to 30 percent to global securities, and can both buy and short-sell securities. Its niche is a flexible long-short portfolio designed to pursue positive risk-adjusted returns over the long term.