L1 Global Long Short Fund Limited reports a remarkable half-year turnaround with a 609% jump in net profit, driven by a new investment manager and a refreshed strategy. The company also declares a fully franked interim dividend as it completes a major equity raise and portfolio transition.
- 609% increase in net profit to $57.5 million
- Change of investment manager to L1 Capital Pty Ltd
- Pre-tax net tangible asset backing per share rises to $1.654
- Fully franked interim dividend of 1 cent per share declared
- Successful equity raise and share buy-back completed
A Transformative Half-Year for GLS
L1 Global Long Short Fund Limited (ASX: GLS), formerly Platinum Capital Limited, has delivered a striking financial performance for the half-year ended 31 December 2025, reporting a net profit attributable to members of $57.485 million – a 609% increase compared to the previous corresponding period. This surge follows a period of significant corporate and strategic transformation, including a change in investment manager, board refresh, and a major equity raise.
The company’s pre-tax net tangible asset (NTA) backing per share, a key measure of investment performance, rose from $1.515 to $1.654 despite paying dividends and taxes during the period. This growth reflects the successful repositioning of the portfolio under new management and a reset of the company’s strategic direction.
New Management and Strategy in Focus
On 28 November 2025, L1 Capital Pty Ltd replaced Platinum Investment Management Limited as the investment manager, marking a pivotal shift. The portfolio was liquidated and transitioned to a global long-short strategy managed by L1 Capital, targeting a long-term net return of 10% per annum with enhanced downside protection. The new strategy is geographically unconstrained, focusing on developed markets including the US, Europe, and Asia.
During the half-year, the portfolio delivered a 9.2% return measured by pre-tax NTA, outperforming the MSCI All Country World Net Index benchmark return of 8.7%. Key contributors included US technology giants such as Alphabet, Micron Technology, Lam Research, and Broadcom, alongside Taiwan Semiconductor Manufacturing Company (TSMC), healthcare companies IQVIA and Merck, and South African platinum miner Valterra. Chinese tech giant Alibaba also added positive returns.
Capital Management and Shareholder Returns
GLS undertook a substantial capital management program, including an on-market buy-back of nearly 44 million shares and a pro-rata entitlement offer that raised up to $415 million. These moves, alongside an institutional placement, significantly increased the company’s issued capital to over 547 million shares by 31 December 2025.
The board declared a fully franked interim dividend of 1 cent per share, reflecting the company’s reset and commitment to sustainable, growing dividends. This dividend represents a grossed-up yield of 2.4% based on the closing share price at the end of December 2025. The company’s dividend reinvestment plan remains open for shareholders wishing to increase their holdings without brokerage costs.
Fee Structure and Governance
The new investment management agreement with L1 Capital includes a 12-month management fee holiday, followed by a 1.4% annual management fee plus GST. A performance fee of 20% applies to returns exceeding the portfolio’s previous high-water mark, with underperformance carried forward. Notably, the accumulated underperformance from the prior manager was not carried over.
The board was refreshed in October 2025 with the appointment of three new directors nominated by L1 Capital, including Chair Rachel Grimes AM. The governance changes aim to align the company’s oversight with its new strategic direction and investment approach.
Looking Ahead
GLS’s strong half-year results and strategic reset position it well for future growth, but the new investment approach is still in its early stages. The company’s ability to sustain dividend payments and outperform benchmarks will be closely watched by investors as the global economic environment evolves.
Bottom Line?
GLS’s reset and strong half-year performance set the stage for a new chapter, but investors will watch closely for sustained delivery under L1 Capital’s stewardship.
Questions in the middle?
- How will GLS’s new long-short strategy perform through varying market cycles?
- What impact will the 12-month management fee holiday have on long-term returns?
- Will the company maintain or grow its fully franked dividend stream amid market volatility?