L1 Capital Long Short Fund Limited (ASX: $LSF) is set to host an investor webinar on Thursday, May 30 at 11am (AEST). The webinar will feature insights from Raphael Lamm, Joint Managing Director & Co-CIO, and Amar Naik, Head of Research, providing valuable information for potential and existing investors.
Economic growth forecasts have remained resilient over the past year, with U.S. Real GDP growth forecasts being revised up approximately 100bps year-to-date. The Australian GDP growth, although below long-term trend, is supported by a resilient labor market. Inflation has remained more persistent than expectations but is expected to trend lower over the coming months. Stronger economic growth coupled with persistent inflation has driven a sharp revision in interest rate expectations. Despite the market shrugging off inflation risks and the re-basing of interest rate expectations, equity markets look fully priced at current levels. The portfolio is skewed to lower P/E stocks that have strong earnings growth and robust cashflow generation, positioning the fund strategically amidst the current market conditions.
L1 Capital Long Short Fund Limited (ASX: $LSF) has demonstrated strong long-term performance, positioning itself as the best performing Australian long short strategy since its inception in 2014. The fund's market observations and positioning reflect a resilient economic outlook, with a focus on lower P/E stocks with strong earnings growth and robust cashflow generation. The fund sees two key areas of downside risk in the market, particularly in weakening consumer discretionary spending and stretched domestic bank valuations. Additionally, the fund is invested in five key themes, including infrastructure, global leaders, cash machines, copper & gold, and uranium, which are expected to offer compelling, asymmetric risk-reward. L1 Capital's reputation for investment excellence and best of breed strategies, along with its strong performance culture, further solidify its position as a well-resourced and experienced global investment manager.
Not sure I understand the whole “asymmetric risk-reward” thing. Maybe they’ll explain it better in the webinar.
Interesting to hear L1 Capital’s take on the market. Lower P/E with strong cash flow sounds like a good strategy in this environment.