L1 Long Short Fund Ltd. · ASX:LSF
L1 Long Short Fund — Investor Presentation (November 2021)
29 slides from L1 Long Short Fund's investor presentation, Nov 3, 2021
Slide 1: L1 Long Short Fund Limited Investor Update
For personal use only L1 Long Short Fund Limited Investor Update Mark Landau, Joint Managing Director and Chief Investment Officer November 3, 2021
Slide 2: Overview: Performance has been strong with broad based stock contributors
Overview Performance has been strong with broad based stock contributors For personal use only Over the past year, the portfolio has returned 78%1 and the LSF share price has increased by 93%. The quality and breadth of performance has been pleasing. ▪ Positive returns from: - Long and short stock p
Slide 3: Performance Summary
For personal use only 1 Performance Summary
Slide 4: LSF has had an exceptional three years
Performance Summary LSF has had an exceptional three years For personal use only Past year: Portfolio +78%1, LSF share price +93%. Pre-tax NTA Net Performance L1 Long S&P ASX to 30 Sep 2021 (%) Short Fund 200 AI Outperformance 3 months 12.1 1.7 +10.4 6 months 22.0 10.1 +11.9 1 year 78.1 30.6 +47.6 2
Slide 5: Strong Performance in Both Rising and Falling Markets
Strong Performance in Both Rising and Falling Markets Since inception of the Long Short Strategy For personal use only Performance in “Down Market” Months Performance in “Up Market” Months (Average of 30 months) (Average of 55 months) 5.0% 2.9% 2.9% 2.5% 0.2% 0.0% -2.5% -3.2% -5.0% Long Short Strate
Slide 6: Market Outlook
For personal use only 2 Market Outlook
Slide 7: Market Outlook: Four key themes
Market Outlook We expected the following trends to dominate financial markets in 2021. We believe these trends will continue. For personal use only Four key themes Market ▪ Solid global GDP growth should lead to a continued rotation from: Rotation Cash and bonds Equities Growth stocks Value stocks D
Slide 8: Market Rotation
Market Rotation Value stocks are set to recover after an extreme period of underperformance For personal use only Chart 1: Growth vs Value – Relative performance ▪ Since 2007, value stocks have endured the largest and 200 Growth Outperforming longest period of underperformance ever on record. 180 Wo
Slide 9: Reopening Trade
Reopening Trade We remain positive on the ability for vaccines to control the pandemic For personal use only Israel: Total hospitalised patients ▪ Delta variant wave is a pandemic of the unvaccinated. ▪ Most OECD countries have largely reopened and we expect to see a positive inflection point in man
Slide 10: M&A Wave
M&A Wave 2021 has been the biggest year ever for M&A activity and there is no end in sight For personal use only M&A and corporate restructuring in Australia and globally is surging: M&A deals announced (USDm) ▪ Business confidence is high – strong EPS, undergeared balance sheets. ▪ Debt & equity is
Slide 11: Higher Inflation
Higher Inflation There are elevated risks that higher inflation will be more persistent than the market expects For personal use only From our analysis, significant increases in inflation are typically driven by (at least one) of three main factors: 1 Wage pressure: Numerous sectors struggling to at
Slide 12: Portfolio Positioning & Themes
For personal use only 3 Portfolio Positioning & Themes
Slide 13: Portfolio Themes
Portfolio Themes We are invested in four key themes that offer compelling, asymmetric risk-reward For personal use only U.S. Sports Betting Energy Vaccine Recovery Corporate Restructure ▪ Exponential growth likely ▪ New energy – industry ▪ Vaccine success has only ▪ High quality for at least 5-7 yea
Slide 14: Theme – U.S. Sports Betting
Theme 1 – U.S. Sports Betting One of the most exciting, high growth industries globally For personal use only Flutter (FLTR – UK) Entain (ENT – UK) ▪ #1 player in U.S. online sports betting and #2 in iGaming industry. ▪ Entain’s JV with MGM Resorts (BetMGM) is the 3rd largest player ▪ Industry is ve
Slide 15: Theme – Energy
Theme 2 – Energy Both ‘old energy’ & ‘new energy’ stocks look attractive for different reasons For personal use only Cenovus Energy (CVE – USA) Mineral Resources (MIN) ▪ Recovering oil price is driving strong free cashflow generation on ▪ All key areas of the business (iron ore, lithium and mining s
Slide 16: Theme – Vaccine Recovery
Theme 3 – Vaccine Recovery ‘COVID losers’ will enjoy accelerating operating metrics in 2022 as Australia reopens For personal use only Qantas (QAN) Ramsay Health Care (RHC) ▪ Massive pent up travel demand, strong outlook for loads and ▪ Largest and highest quality private hospital group in Australia
Slide 17: Theme – Corporate Restructures
Theme 4 – Corporate Restructures Many companies are set to restructure their business to highlight hidden shareholder value For personal use only Tabcorp (TAH) News Corp (NWS) ▪ Monopoly lotteries business set to be demerged from Wagering ▪ Strong operating momentum and long growth runways for 3 cor
Slide 18: Key Portfolio Contributors and Detractors
Key Portfolio Contributors and Detractors Portfolio remains fresh and has been rotated to reflect our highest conviction ideas For personal use only Company name Company news Z Energy Takeover offer from Ampol at a 35% premium to the unaffected share price (prior to deal speculation). Wells Fargo Im
Slide 19: For personal use only
For personal use only 4 Corporate Update
Slide 20: Discount to post-tax NTA has reduced significantly
Corporate Update Over the past year, we have seen the discount reduce significantly, due to a range of positive drivers For personal use only The discount to post-tax NTA has narrowed from 23% to 3%1. Performance: Consistent strong performance from 2019-2021. LSF share price and post-tax NTA – 12 mo
Slide 21: Summary
Summary For personal use only 1 The portfolio has performed very strongly in 2019 (+25%), 2020 (+30%) and 2021 YTD (+32%). 2 There are four market trends that we believe will continue to dominate markets: Market Rotation, Reopening Trade, M&A Wave and Higher Inflation. 3 We see four themes that offe
Slide 22: Appendix: Overview of L1 Capital
For personal use only Appendix I Overview of L1 Capital
Slide 23: L1 Capital – Business Overview
L1 Capital – Business Overview For personal use only Specialist investment manager founded by Mark Landau & Rafi Lamm in 2007 ▪ ‘L’ – Derived from the surnames of the founders (Lamm & Landau). ▪ ‘1’ – Genuine firm-wide aspiration to be the “best”, not just “good”. ▪ Reputation for investment excelle
Slide 24: Global Investment Manager
Global Investment Manager Well resourced and experienced team across investments, operations, compliance and investor relations For personal use only Business Overview L1 Capital staff by function: London Founded in 2007 Since 2017 20 Investments UK Residential Property 11 Operations & Compliance
Slide 25: L1 Capital Funds
L1 Capital Funds Investment Excellence – Outstanding performance since inception across all strategies For personal use only Long Short Fund Global Opportunities International Equities 23.8% p.a. net return S.I. (ASX200AI 8.2% p.a.)1 37.1% p.a. net return p.a. S.I. 19.7% p.a. net return S.I. (MSCI W
Slide 26: Competitive Edge
Competitive Edge A highly aligned and proven team that drives performance through differentiated research For personal use only Track Record Quality Research Independent Thinking Best performing hedge Differentiated company, Low correlation with other fund in Australia since industry and macro resea
Slide 27: Important information
Important information L1 Long Short Fund Limited For personal use only L1 Long Short Fund Limited has been established to invest in a portfolio of predominantly Australian and New Zealand securities, with up to 30% invested in global securities. The Company has the ability to both buy and short-sell
Slide 28: Contact Us
Contact Us For personal use only Chris Clayton Wayne Murray Alex Ordon Head of Distribution Investment Specialist Investment Specialist +61 (3) 9286 7021 +61 (0) 424 300 003 +61 (0) 413 615 224 [email protected] [email protected] [email protected] Aman Kashyap Alejandro Espina Investment Specialist
Slide 29: 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 L1LongShort.com.au
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