L1 Long Short Fund Ltd. · ASX:LSF

L1 Long Short Fund — LSF Investor Conference Call (May 2019)

18 slides from L1 Long Short Fund's conference presentation, May 23, 2019

  1. Slide 1: L1 Long Short Fund Limited May 2019

    For personal use only L1 Long Short Fund Limited May 2019

  2. Slide 2: Performance Track Record

    Performance Track Record For personal use only ZENITH AWARD Launched L1 Capital Long Short Fund (unlisted fund since inception) Sep 2014  139.1% net return since inception; 20.5% net return p.a. since inception Best ‘Australian Equities – Alternative Strategies’  70 individual positions added +1%

  3. Slide 3: Reporting Season Observations

    Reporting Season Observations Key points: For personal use only  Profit results and outlooks were weaker than consensus expectations. Largest negative EPS revisions since the GFC.  Sharp market rally was not a function of strong earnings. Most of the move in February was from a relief rally in ban

  4. Slide 4: Reporting Season Observations

    Reporting Season Observations For personal use only Only ~40% of ASX200 firms grew EPS in 1H19, the weakest period since 2009 EPS growth for the ASX200 was cut by 3.4%, the largest downgrade to full-year growth forecasts since the GFC. Revision to full- year consensus EPS growth post 1H results anno

  5. Slide 5: Fund Performance (2019)

    Fund Performance (2019) For personal use only  The Fund has had a strong start to 2019 (up 9.3% so far this year).  The Fund delivered positive net returns in January, February, March and April, which is a pleasing trend after a difficult 2018. Performance has largely been driven by stock picking

  6. Slide 6: Portfolio Positioning

    Portfolio Positioning For personal use only  Markets remain fully valued, with numerous macro risks. – U.S./China Trade War, Australian housing market stress, U.S. economic slowdown & rising wages, Brexit, fragile European banking system, China structural imbalances.  M&A activity likely to pick u

  7. Slide 7: Portfolio Positioning

    Portfolio Positioning For personal use only Net Exposure Gross Exposure Australia/New Zealand 8% 162% North America 12% 35% Europe 15% 15% Asia 5% 9% Total 40% 222% All data current as at 20 May, 2019. AFSL 314 302 L1 Long Short Fund Limited 7

  8. Slide 8: Market Outlook

    Market Outlook For personal use only 1YR Forward P/E for the ASX200 Industrials is 22.0x versus 10 year average of 16.8x Source: CLSA, Datastream, as at 22 May 2019 AFSL 314 302 L1 Long Short Fund Limited 8

  9. Slide 9: Market Outlook

    Market Outlook For personal use only  Australian equities look fully priced – industrials are trading at a forward P/E of 22.0x versus long run average of 16.8x.  However, compared to other asset classes (eg. bonds, cash, property) equities still look relatively attractive.  After a 10 year bull

  10. Slide 10: M&A activity likely to pick up in 2019

    M&A activity likely to pick up in 2019 For personal use only  After a relatively quiet period in terms of M&A activity, we believe activity is about to surge.  Private equity firms in Australia and Asia have recently raised tens of billions of dollars.  Debt markets are very conducive to deals –

  11. Slide 11: New Position – WorleyParsons (WOR)

    New Position – WorleyParsons (WOR)  WorleyParsons is one of the world’s leading oil services companies. It recently acquired the Energy, For personal use only Chemicals & Resources division of U.S. peer Jacobs.  The shares had fallen from around $19 to $11 between October and December last year du

  12. Slide 12: New Position – Vivendi (VIV)

    New Position – Vivendi (VIV)  French music and media conglomerate whose main asset is the world’s number 1 music label, For personal use only Universal (UMG).  UMG has a 30% market share of global recorded music, which gives it enormous market power.  Revenue & earnings are accelerating on the ba

  13. Slide 13: Key Portfolio Position – Chorus (CNU)

    Key Portfolio Position – Chorus (CNU) Chorus has been one of the largest positions in the Fund since inception in Sept 2014 ($1.60/share v today at For personal use only $5.41)  Chorus is the monopoly owner of the new fibre network across most of New Zealand (81%) and also owns 100% of the monopoly

  14. Slide 14: Key Portfolio Position – CK Hutchison (1.HK)

    Key Portfolio Position – CK Hutchison (1.HK)  Extremely high quality asset base - US$40b+ of infrastructure assets, 51 major ports, largest and fastest For personal use only growing pharmacy chain in China, large European telco business, global energy assets.  Key assets have very attractive indus

  15. Slide 15: Key Portfolio Position – HeidelbergCement (HEI)

    Key Portfolio Position – HeidelbergCement (HEI)  HeidelbergCement is a high quality, global construction materials business listed in Germany and For personal use only operating in 55 different countries globally.  HEI shares performed poorly in 2018 given general weakness in the German stock mark

  16. Slide 16: Contact

    Contact For personal use only Investor Relations Wayne Murray Phone + 61 3 9286 7008 Email [email protected] AFSL 314 302 L1 Long Short Fund Limited 16

  17. Slide 17: Legal Disclaimer

    Legal Disclaimer For personal use only Information contained in this presentation The opinions, advice, recommendations and other information contained in this publication, whether express or implied, are published or made by L1 Capital Pty Ltd (ABN 21 125 378 145), Australian Financial Services Lic

  18. Slide 18: For personal use only

    For personal use only ABN 21 125 378 145 | AFSL 314 302 Level 28, 101 Collins Street Melbourne Victoria 3000 Australia Phone +61 3 9286 7000 Fax +61 3 9286 7099 Web L1.com.au

L1 Long Short Fund — LSF Investor Conference Call (May 2019) on 6ix