L1 Group’s funds under management tumbled in the March quarter as the performance of its flagship hedge fund was hit by the escalating war in the Middle East, and investors kept pulling money from Platinum Asset Management’s strategies.
The high-profile L1 Long Short Fund, which manages $7.6 billion, fell nearly 8 per cent last month alone as its position in Qantas was whacked by higher jet fuel costs and softer travel demand caused by the Iran war. The portfolio’s holding in James Hardie was hit by rising inflation expectations and mortgage rates, which have weighed on the outlook for housing activity.
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