L1 Long Short Fund (ASX:LSF) portfolio returned 1.3% for the March quarter, and it returned 25.4% per annum over the past five years, according to a Tuesday Australian bourse filing.

Global equity markets were weaker during the quarter due to policy uncertainty, weaker US economic data, and persistently higher inflation reports, it noted.

Stock-specific updates in several industrials, gains in gold stocks as well as a sell-off in expensive banks and technology stocks, where the fund had some short positions contributed to the result.

It said it saw parallels of the current macro environment and valuation dispersion with previous market selloffs during December 2018 and the Covid-19 sell-off in 2020, which reinforces its positive view on the medium-term opportunity for the portfolio.

It launched the L1 Capital Gold Fund in March to provide investors access to undervalued gold equities in a diversified manner.