The LHC Capital High Conviction Fund declined 5.3% net during the first quarter, underperforming the S&P ASX 200 AI index and the S&P ASX Small Ords AI index, which fell 2.8% and 2%, respectively.
However, the LHC fund continues to outperform on a long-term basis, with an annualized return of 12.7% since its inception. The S&P ASX 200 AI index has generated an annualized return of 8% over the same time frame, while the S&P ASX Small Ords AI index has returned 3.6% annualized. Cumulatively, the LHC Capital High Conviction Fund is up 429.3% since its inception, versus cumulative returns of 192% and 64.4% for the indexes, respectively.
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Negatives outweigh the positive in Q1
LHC Capital is an Australian specialist investment management company that focuses on conviction investing and capital preservation via its fundamental, research-driven strategy. The firm has demonstrated a strong track record in risk management, aiming to produce absolute returns that are not correlated to the broader markets.
In their first-quarter letter to investors, which was obtained by Hedge Fund Alpha, Stephen Aboud and Marcus Hughes of LHC Capital reported positive gains from the fund’s holdings in MA Financial and a large short position in
