LHC Capital is an absolute return-oriented fund based in Sydney, Australia, that invests in a concentrated portfolio of high-quality opportunities. The strategy’s cornerstones are a high margin of safety and a focus on intrinsic value. The fund also takes short positions when it identifies securities trading well above their intrinsic value.
Read more hedge fund letters here
The investment decision follows a four-step process: fundamental valuation, macro considerations, identification of catalysts, and the investment edge. The investment edge refers to the fund’s ability to recognize intrinsic value that other market participants have missed.
In its July letter, the fund disclosed quarterly returns reaching 14.0%, while calendar YTD performance stands at 8.0%. Since its inception in 2011, the fund has generated cumulative returns of 507.2%.
The top-performing positions were longs in Hub24 (ASX:HUB), Life360 (NASDAQ:LIF), Pro Medicus (ASX:PME), TechnologyOne (ASX:TNE), and Wise Tech (ASX:WTC). Hedges slightly detracted from overall performance.
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
