What did L1 Gold Fund report?

• Successfully completed an institutional placement, entitlement offer, and shortfall offer totalling approximately $254.9 million at $2.25 per new share
• Placement raised $160.3 million, Institutional Entitlement Offer $52.5 million, and Shortfall Offer $42.0 million
• Founders Mark Landau and Raphael Lamm fully participated, taking up $52.5 million in entitlements
• New shares to be allotted on 2 September 2026 and commence trading on 3 September 2026
• Retail entitlement offer aiming to raise up to $261.7 million opens 31 August 2026

What else do investors need to know?

The placement and entitlement offers received strong support from both existing and new eligible shareholders, highlighting ongoing confidence in the company and the gold sector. L1 Group chose not to take up its $42 million entitlement so these shares could be allocated to new investors in the shortfall offer, but may subscribe to any retail shortfall.

Eligible retail shareholders will be able to buy 1 new share for every 3 held as at the record date, at an issue price matching the pre-tax net tangible asset value. The offers are not underwritten and the investment manager, L1 Capital Pty Ltd, will bear all fundraising costs.

What's next for L1 Gold Fund?

The retail entitlement offer will open on 31 August 2026 and close on 9 September 2026. Eligible investors can also apply for extra shares beyond their entitlement through a top-up facility, with allocation at the company's discretion.

Once the capital raising is complete, L1 Gold Fund expects to use the fresh funds to continue investing in gold and precious metals, aiming to strengthen its portfolio for long-term shareholder value.

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The post L1 Gold Fund raises $254.9m in placement and entitlement offers appeared first on The Motley Fool Australia.

What did L1 Gold Fund report?

• Loss after income tax: $71.1 million (first reporting period since IPO)
• Total investment losses: $92.5 million
• Portfolio net return: -10.90% (April to June 2026)
• No dividends declared or paid during the period
• Net tangible asset backing per share (post-tax): $1.8482
• Basic and diluted loss per share: 14.97 cents

What else do investors need to know?

L1 Gold Fund officially listed on the ASX in April 2026, raising $950 million in its IPO. The first reporting period coincided with a sharp 17% decline in the gold price, driven by geopolitical tensions, shifting interest rates, and heavy defensive selling.

Despite a challenging debut, the Investment Manager used active stock selection and hedging strategies, such as a physical gold short position, to cushion portfolio performance relative to sector declines. Management capitalised on the sector sell-off by adding high-conviction, mid-cap gold producers and late-stage developers to the portfolio.

On 24 August 2026, the company announced a capital raising comprising a non-underwritten placement of up to $160 million and a 1-for-3 non-renounceable entitlement offer at $2.25 per share. This offer remains open, with completion pending further updates.

What did L1 Gold Fund management say?

Chairman Andrew Larke said:

In an exceptionally volatile environment for gold and mining equities, our portfolio return of -10.90% compared to a decline of nearly 20% for the sector reflects the resilience of our investment strategy. While the initial period of performance is disappointing, we remain confident in the long-term opportunity for quality gold equities. We thank shareholders for their ongoing support and patience.

What's next for L1 Gold Fund?

The company's investment manager remains optimistic about the longer-term case for gold and quality gold equities, with ongoing central bank buying and elevated geopolitical risks expected to support the gold price. The current capital raise is aimed at expanding the portfolio to capture what management views as compelling valuations across mid-cap producers and late-stage developers.

L1 Gold Fund plans to maintain its focus on strong research, portfolio discipline, and active risk management to navigate further market volatility. The next Annual General Meeting will be held on 10 November 2026.

L1 Gold Fund share price snapshot

Over the past 12 months, L1 Gold Fund shares have risen 19%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

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The post L1 Gold Fund posts debut FY26 result and capital raise update appeared first on The Motley Fool Australia.

At the time of writing, in the last 12 months, Nvidia shares have gone up by 47%, while the L1 Group share price has jumped by 108%.

Why has the ASX stock risen so much?

I believe a significant portion of the return can be put down to the acquisition of/merger with Platinum Asset Management. Investors are much more excited about the outlook of the business under L1's management than Platinum.

L1 has an impressive track record, delivering outperformance with its ASX shares, global shares and gold shares strategies, with each of those significantly outperforming the S&P/ASX 200 Index (ASX: XJO) since the inception of those respective strategies.

Having a good investment performance as a fund manager is integral for a couple of key reasons. Firstly, it organically helps a fund manager grow their funds under management (FUM) – an essential driver of revenue and earnings.

Additionally, great fund performance can help attract new FUM inflows, further boosting the ASX stock's FUM.

One of the latest moves by the business was to launch the listed investment company (LIC) L1 Gold Fund (ASX: LGF), which raised $950 million and started trading on the ASX in April. This helps lock in more funds within a closed structure, as opposed to exchange-traded funds (ETFs) which are open-ended where it's easy for clients to permanently remove FUM from a fund manager. Shares of LICs are sold from one investor to another – the FUM still exists.

Out of L1 Group shares or Nvidia shares, I think I'd prefer the funds management business.

Excellent outlook

Nvidia is certainly a great business, operating at the pinnacle of one of the strongest growth areas of the global economy right now.

But, it's worth asking how much more demand can continue increasing from where it is today and what the price/earnings (P/E) ratio is implying.

L1 Group points to a number of appealing growth areas including growth of existing funds through performance and flows, extension of strategies from the existing investment team (such as L1 Global Long Short Fund Ltd (ASX: GLS) ), joint ventures and potentially further acquisitions of existing fund managers.

Further growth of the ASX stock's profit could be boosted following the integration of Platinum and the synergies that's expected to deliver.

According to the forecast on Commsec, the ASX stock is valued at less than 20x FY27's estimated earnings, with FY27 profit projected to rise by approximately 25% year-over-year compared to the forecast for FY26.

The post Meet the $1 ASX stock that's obliterated Nvidia in the last 12 months appeared first on The Motley Fool Australia.