L1 Long Short Fund Announces NTA Per Share of $4.22 as of 22 July 2026

Overview of L1 Long Short Fund’s Investment Approach and Market Positioning

L1 Long Short Fund Limited operates as a closed-end investment vehicle offering exposure to a long and short investment strategy. Based in Melbourne at Level 45, 101 Collins Street, it is listed on the ASX under the ticker symbol LSF. The fund employs both long positions, anticipating price appreciation, and short positions, anticipating price declines, to diversify risk and manage exposure across market cycles. As a closed-end fund, it issues a fixed number of shares without continuous creation or redemption, providing a stable capital base for its investment activities.

Investors typically value closed-end funds like LSF based on the Net Tangible Asset backing per share, which represents the per-share net asset value by dividing total net tangible assets by outstanding ordinary shares. This metric is essential for determining whether the fund’s market price trades at a premium or discount to its underlying asset value, influencing investment decisions for current and prospective shareholders.

Interpreting the Before-Tax NTA of $4.2174 Per Share

The company’s update reports an NTA before tax of $4.2174 per ordinary share as of 22 July 2026. This figure excludes provisions for deferred tax on unrealised gains and losses within the investment portfolio. It reflects the gross asset value per share before accounting for potential tax liabilities that would arise if the fund realized all investment gains and losses. This pre-tax valuation offers investors insight into the fund’s portfolio value before tax considerations, useful for performance comparisons across periods.

While the before-tax NTA shows the full investment value without tax liabilities, it does not represent the liquidation value available to shareholders, as liquidation would trigger tax consequences. The announcement clarifies that all figures are unaudited and approximate, representing management’s best estimates rather than independently verified audited data. Investors should consider this preliminary nature when using the before-tax NTA for analysis.

After-Tax NTA of $3.8956 Per Share: Reflecting True Shareholder Value

The update also reveals an after-tax NTA of $3.8956 per ordinary share as at 22 July 2026. This figure accounts for all applicable taxes, representing the actual economic value backing each share. The $0.3218 difference between the before-tax and after-tax NTA ($4.2174 minus $3.8956) reflects the estimated deferred tax liability embedded in the fund’s unrealised portfolio gains and losses. This tax-adjusted figure provides shareholders a more conservative and realistic valuation, incorporating tax consequences of the fund’s current positions.

Investors and analysts often prioritize the after-tax NTA when assessing closed-end funds, as it approximates the value available upon liquidation after settling tax obligations. The deferred tax liability can fluctuate with investment performance, realised and unrealised gains or losses, and tax environment changes. Understanding both before- and after-tax NTA offers a comprehensive view of the fund’s tax efficiency and the true cost of its investment strategy.

Measurement Date and Reporting Schedule for L1 Long Short Fund

The disclosed NTA figures are as at 22 July 2026, providing a specific snapshot of the fund’s asset position. Closed-end funds generally release NTA data periodically—monthly, quarterly, or as per fund constitution and ASX rules. This release, dated 27 July 2026, shows a typical five-day lag for final calculations and verification.

Regular NTA updates enhance market transparency, enabling investors to compare the fund’s market price against its net asset value. Tracking NTA over time helps investors evaluate fund performance independently of share price fluctuations influenced by market sentiment or liquidity. These periodic disclosures create consistent opportunities for investors to reassess holdings and investment outlooks.

Implications of Unaudited NTA Figures for Investors

The company emphasizes that all NTA figures are unaudited and approximate, which affects how investors should interpret the data. Unaudited numbers derive from internal valuations without external auditor verification. Approximate figures reflect valuation challenges, especially for illiquid or complex securities requiring estimation rather than market prices. This practice is standard in fund accounting and does not imply inaccuracies but signals that figures are management estimates pending audit adjustments.

Investors should note that unaudited NTA figures may be revised upon release of audited financial statements. Nonetheless, interim NTA disclosures provide timely insights between formal audits, supporting informed investment decisions. The transparent disclosure of the unaudited status aligns with best practices, helping investors gauge the reliability of the data.

Tax Considerations in the Fund’s Portfolio Valuation

The difference between before-tax and after-tax NTA highlights the impact of tax liabilities within the fund’s portfolio. The deferred tax liability of approximately $0.3218 per share corresponds to unrealised gains that would become taxable upon realisation. This tax provision is a key factor in the fund’s financial position and illustrates the interplay between investment returns and tax efficiency. For a long short fund, tax implications can be complex due to varying tax treatments of long and short positions across jurisdictions and holding periods.

Tax efficiency is critical for closed-end fund investors since deferred tax liabilities can reduce future returns when gains are realised and taxed. The fund’s tax position reflects cumulative investment decisions, market movements, and realised transactions. Investors should focus on the after-tax NTA as a conservative measure of investment value, accounting for eventual tax costs. Comparing tax efficiency with peer funds can inform long-term investment strategies.

Closed-End Fund Structure and NTA Calculation Methodology

L1 Long Short Fund’s closed-end structure differs from open-ended funds by maintaining a fixed number of shares unless capital raises or buybacks occur, offering a stable capital base. This contrasts with open-ended funds where shares are continuously created or redeemed. The NTA per share is calculated by dividing total net tangible assets (assets minus liabilities) by outstanding ordinary shares.

Calculating NTA requires fair valuation of all portfolio assets at the measurement date. Liquid securities are valued using recent market prices, while illiquid or complex assets require valuation models or pricing services. Deferred tax calculations are integral, especially for after-tax NTA. The long short strategy adds complexity, as short positions represent liabilities that must be accurately valued. Periodic NTA disclosures provide investors with updated insights into the fund’s underlying value.

Investment Strategy Insights for L1 Long Short Fund Investors

The fund’s long short strategy aims to generate returns in diverse market environments by combining long exposure with downside protection through short positions. This approach seeks to reduce market risk compared to long-only portfolios, with short gains offsetting losses during downturns. However, short positions may limit upside in strong bull markets. Success depends on the fund manager’s security selection and timing.

Investors should recognize the strategy’s complexity affecting performance attribution, tax outcomes, and risk management. Regular NTA disclosures help monitor whether the strategy delivers risk-adjusted returns and capital preservation. The before- and after-tax NTA split is especially relevant given tax implications from short sales, derivatives, and dividend treatments. Tracking NTA trends supports evaluation of strategy effectiveness and shareholder value creation.

Market Context and Monitoring of LSF’s Performance

The NTA release offers vital data for investors tracking L1 Long Short Fund’s valuation and performance on the Australian market. While immediate share price impact is unclear, the NTA figures serve as benchmarks to assess whether LSF shares trade at premiums or discounts to net asset value. Persistent premiums or discounts may reflect market sentiment, liquidity, or demand for the long short strategy. Regular NTA disclosures provide ongoing opportunities to evaluate alignment between market prices and fundamental value.

Closed-end funds like LSF often trade at varying premiums or discounts influenced by market conditions and investor sentiment. Understanding NTA backing equips investors to identify attractive entry or exit points. The long short fund category is sensitive to market volatility and regime shifts, affecting the strategy’s appeal. Monitoring future NTA updates will help investors assess the fund manager’s success in generating positive returns net of fees and taxes.