Normally, I don't like buying ASX shares that are up 40% in six months. As a value investor at heart, I try (with varying degrees of success) to follow Warren Buffett's playbook of buying high-quality companies at cheap prices.
However, I can make exceptions. And I am seriously considering making one when it comes to the L1 Global Llog Short Fund Ltd (ASX: GLS).
The L1 Global Long Short Fund is a listed investment company (LIC) that has quite an interesting history. In fact, not too long ago, it had a different name and a different manager. Yep, the L1 Global Fund was formerly known as Platinum Capital Ltd. However, the manager of this LIC had been struggling for a number of years, and decided to accept a takeover offer from L1 Group Ltd (ASX: L1G). Upon the completion of this takeover, the L1 Global Long Short Fund was born.
L1 was already famous for its L1 Long Short Fund (ASX: LSF) LIC, which, despite a rocky start, has gone on to become one of the ASX's best-performing managed investments. That fund has an ASX-focused mandate, though. L1 wanted to build a fund that was unconstrained in its scope, and we have it here on the ASX today with the L1 Global Log Short Fund.
Like its locally-focused Long Short Fund, the L1 Global Fund employs both traditional 'long' investing alongside short-selling in order to make returns. This makes it quite unique on the ASX, which only has a handful of funds that employ both strategies. Whilst risky, using both can enable this LIC to profit in both bull and bear markets.
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Is this ASX share a no-brainer buy in 2026?
Now, the L1 Global Long Short Fundhas several traits that would normally put me off buying it. For one, it uses short-selling, which is a tactic I don't usually like to see in my investments. For another, it charges a steep management fee of 1.44% per annum (plus a performance fee).
However, I can't ignore the numbers. As we covered a few months ago, L1's team trialled the strategy that it now uses for the Global Long Short Fund. This trial saw L1 record a return of 67.5% between January and October. Since the start of October, this LIC has risen by almost 35%.
If this breakneck performance can be maintained over a number of years and all economic and market cycles, it could mean L1 Global Long Short Fund is one of the best shares on the ASX.
So I'll be keeping a close eye on this investment. If management keeps making the right calls, I might have to buy some shares of my own.
