L1 Long Short Fund Limited

Investment Strategy

Successful bottom-up investing requires a disciplined approach, detailed research and an independent thought process to deliver sustainable outperformance

Our three key principles are:

01

Valuation and qualitative factors are the key drivers of long term share price performance. Both factors are critical and of equal importance.

02

Markets tend to be emotional, short-term and backward looking. Markets continually present opportunities to investors who are unemotional and long-term in their assessment of business potential.

03

An intensive visitation schedule with a wide variety of stakeholders can provide a more complete perspective of a company’s prospects.

Investment Strategy Summary

Inception date 24 April 2018

Ticker ASX:LSF

Type of investments Australian shares, international shares, index futures, equity derivatives

Investment objective To deliver strong, positive, risk-adjusted returns over the long term and to preserve capital.

Time horizon At least 5 years

Benchmark None

Gearing Yes

Shorting Yes

Positions (typical) 50-100 positions

International exposure 10-30%

Typical net exposure 30-100%

Max net exposure 150%

Max gross exposure 300%

Management fee 1.44% p.a. (inclusive of GST less RITC)

Performance fee 20.0%

Our investment process

L1 Capital invests in high quality businesses trading well below their intrinsic value. Our investment process combines discounted cash flow valuation with qualitative considerations such as management quality, industry & company structure and business trends to identify attractive investment opportunities.

The core of the investment approach is a high level of interaction with a wide range of market participants. This enables us to generate the most complete fundamental, bottom- up assessment of each investment opportunity.

Responsible investment

L1 Capital is a signatory of the Principles for Responsible Investment and committed to incorporating environmental, social and corporate governance issues into our investment analysis and decision-making processes. Please see our ESG and RI Policy to learn more about how we integrate ESG considerations into our investment thinking.

To find out more about the Principles for Responsible Investment visit www.unpri.org