L1 Long Short Fund’s (ASX:LSF) December quarter sees Omicron blues

ASX listed investment company, L1 Long Short Fund Limited (ASX:LSF) shares are trading in green despite a negative return reported for December quarter. The investment company’s shares are trading at AU$2.950 each, as at 1:36 PM, about 0.68% above previous close. LSF’s so claimed unique flexible portfolio structuring approach seems to be backing the share price positives on ASX.

How has LSF trailed through its December quarter?

• The L1 Long Short Fund portfolio has only returned a net negative 1.7% in the December quarter as against 2.1% from ASX200.
• Since last three years, LSF portfolio has been returning a net of 25%.
• Over the December quarter, LSF’s portfolio remained negative due to sell-off in travel and energy sectors cause by Omicron concerns.
• However, LSF claims to have managed a recovery in December mitigating the impact of the sell-off in previous month.
• Key contributors to LSF’s portfolio return over the past year have been Retail, Gaming, Industrials and Material companies, including others.

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LSF’s road ahead-

LSF is planning to keep its exposure stable in the energy, gold and commodities sectors. It also expects volatility to remain, while expecting three or four rate hikes internationally across 2022. LSF is of the opinion that short duration stocks will remain better placed than long duration ones. However, how well LSF translated its portfolio strategy to gather positive return will only be known with time.

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