Overview
- L1 published Q2 investor letters on Monday showing the L1 Long Short Fund returned 12.7% in the June quarter and 12.5% year-to-date, outperforming AI-focused benchmarks.
- The firm said markets in the quarter were driven first by the Iran conflict and then by a ceasefire that lowered oil prices and altered commodity sentiment.
- Hudbay Minerals rose during Q2 after copper climbed about 9.7% and the company completed an all-share deal for Arizona Sonoran, a move L1 says strengthens its North American copper growth profile.
- NexGen was a major detractor for the quarter with a 17% fall, even though the company won final regulatory approval in March for the Arrow uranium project and is preparing a multi-year, four-year construction plan with estimated annual EBITDA of roughly C$2.8 billion under stated price assumptions.
- L1 said it remains focused on quality, valuation and capital preservation and that the Salesforce sale funded greater Nvidia exposure as a deliberate shift to capture AI-led winners while keeping risk controls in place.