Financials
L1 Group Limited (L1G)
L1 Group Limited is an Australian-listed investment company (LIC) that provides investors with access to a professionally managed portfolio of securities. Managed by the well-regarded L1 Capital, the company employs a long/short investment strategy, aiming to deliver strong, risk-adjusted returns by investing in a concentrated portfolio of undervalued Australian and international equities while short-selling overvalued ones.
Market Cap
A$3.1B
Shares on Issue
N/A
Price Chart
AI Analysis
L1 Group Limited's recent performance has been influenced by significant market volatility, with its investment portfolio's returns reflecting the broader shifts in equity markets. The company's Net Tangible Assets (NTA) per share, a key metric for LICs, has fluctuated accordingly, and the share price currently trades at a slight discount to its pre-tax NTA. This discount may reflect investor sentiment regarding the underlying long/short strategy's effectiveness in the current economic climate, despite the manager's strong long-term track record. Key operational metrics include the management and performance fees, which directly impact the net returns available to shareholders.
The growth outlook for L1G is intrinsically linked to the performance of its underlying investment portfolio and the skill of its manager, L1 Capital. Key catalysts for share price appreciation include a narrowing of the discount to NTA, which could be driven by strong portfolio performance, on-market share buybacks, or improved investor sentiment. Strategically, the company is focused on executing its long/short mandate, seeking to identify undervalued companies with strong growth potential while shorting stocks perceived as structurally challenged or overvalued. Future returns will depend on the manager's ability to navigate macroeconomic headwinds and successfully deploy capital in both long and short positions.
Bull Case
- • Access to L1 Capital's highly regarded investment team and their proven long/short strategy, which has historically delivered strong absolute returns.
- • Opportunity for capital appreciation if the current share price discount to the underlying Net Tangible Assets (NTA) narrows or closes over time.
- • The long/short strategy offers potential for positive returns in both rising and falling markets, providing a degree of capital protection during downturns.
Bear Case
- • Dependence on key investment personnel at L1 Capital; underperformance or key staff departures could negatively impact returns.
- • The discount to NTA may persist or widen due to poor market sentiment, liquidity concerns, or sustained periods of portfolio underperformance.
- • The shorting component of the strategy carries inherent risks, including the potential for unlimited losses on a single position and the risk of a 'short squeeze'.
Recent Announcements
Timing of release of Half Year Financial Results
Assets Under Management and Performance Fees
🚨 Price SensitiveL1 Group has increased its assets under management to AUD $2 billion, resulting in a performance fee of AUD $4 million for the financial year ending June 30th.
Notification regarding unquoted securities - L1G
Notification of cessation of securities - L1G
FAQs
What does L1G do?
L1G is a Listed Investment Company (LIC) on the ASX. It operates as a managed fund, investing shareholder capital into a portfolio of Australian and global stocks selected by its investment manager, L1 Capital, which employs a long/short strategy.
Is L1G a good investment?
An investment in L1G offers exposure to a professional investment manager and a diversified portfolio, with the potential for capital growth and dividend income. However, returns are dependent on the manager's performance and market conditions, and the share price can trade at a persistent discount to its underlying asset value, posing a risk.
What drives L1G's share price?
L1G's share price is primarily driven by the performance of its investment portfolio (its Net Tangible Assets or NTA), the size of the dividend, and the market's perception of the investment manager. The share price's premium or discount to its NTA is a key factor, influenced by investor sentiment and the company's capital management initiatives like share buy-backs.
Key Metrics
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