L1 Long Short FundASX:LSF +1.32%61 ROE % is 38.66% as of Dec. 2025, which is 461% above its 10-year median of 6.89. GuruFocus rates ASX:LSF with a GF Score™ of 61/100 and a GF Value™ of A$13.52 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,614 Asset Management companies, L1 Long Short Fund ranks better than 90.21% on this metric.
The historical rank and industry rank for L1 Long Short Fund's ROE % or its related term are showing as below:
ASX:LSF'
s ROE % Range Over the Past 10 Years
Min: -6.14 Med: 6.89 Max: 37.88
Current: 28.93
During the past 8 years, L1 Long Short Fund's highest ROE % was 37.88%. The lowest was -6.14%. And the median was 6.89%.
ASX:LSF's ROE % is ranked better than 90.21% of 1614
companies
in the Asset Management industry
Industry Median: 6.36
vs ASX:LSF: 28.93
L1 Long Short Fund (ASX:LSF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
L1 Long Short Fund ROE % Related Terms
L1 Long Short Fund ROE % Historical Data
* Premium members only.
The historical data trend for L1 Long Short Fund's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, L1 Long Short Fund's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
L1 Long Short Fund ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, L1 Long Short Fund's ROE % distribution charts can be found below:
* The bar in red indicates where L1 Long Short Fund's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
L1 Long Short Fund (ASX:LSF) has a ROE % of 38.66% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on L1 Long Short Fund and its competitors. This is 461% above median its historical median of 6.89. According to the industry distribution chart, L1 Long Short Fund ranks #158 out of 1614 companies in the Asset Management industry, placing it in the top 9.8%.
Is L1 Long Short Fund's ROE % too high?
L1 Long Short Fund's current ROE % of 38.66% is 461% above median its 10-year median of 6.89. The Asset Management industry median ROE % is 6.36. L1 Long Short Fund's value of 38.66% is 507.9% above this industry median. Based on the distribution chart, L1 Long Short Fund ranks #158 out of 1614 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, L1 Long Short Fund has a GF Score™ of 61/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does L1 Long Short Fund's ROE % compare to BLK and BX?
According to the Asset Management industry distribution chart, L1 Long Short Fund ranks #158 out of 1614 companies for ROE %. This places L1 Long Short Fund in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 6.36. L1 Long Short Fund's value of 38.66% is 507.9% above this benchmark. While the company's 10-year median is 6.89 vs. the industry median of 6.36, L1 Long Short Fund has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.36, based on 1,614 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. L1 Long Short Fund's current ROE % of 38.66% is 507.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on L1 Long Short Fund and its competitors. For the Asset Management industry, the median ROE % is 6.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L1 Long Short Fund's current ROE % is 38.66%, which is 461% above median its own 10-year median of 6.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L1 Long Short Fund stock overvalued right now?
Based on GuruFocus' analysis, L1 Long Short Fund (ASX:LSF) is currently considered Significantly Undervalued. The stock's GF Value™ is A$13.52, compared to a current price of A$4.60 — trading 66% below its estimated fair value. The current ROE % is 38.66%, which is 461% above median its 10-year median of 6.89 and 507.9% above the Asset Management industry median of 6.36. L1 Long Short Fund's overall GF Score™ is 61/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For L1 Long Short Fund (ASX:LSF), the current ROE % is 38.66% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is L1 Long Short Fund (ASX:LSF) Overvalued in 2026?
Based on GuruFocus' analysis, L1 Long Short Fund stock appears to be undervalued.
The current stock price of A$4.60 is trading 66% below its estimated GF Value™ of A$13.52.
GuruFocus considers L1 Long Short Fund to be Significantly Undervalued.
Key valuation signals for ASX:LSF:
ROE %: 38.66% (461% above median its 10-year median of 6.89)
GF Value™: A$13.52 vs. price of A$4.60 (66% below fair value)
Industry Position: 507.9% above the Asset Management median (#158 of 1614)
No single metric tells the full story. See the ASX:LSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
L1 Long Short Fund Ltd provides investors with access to an actively managed long and short portfolio of securities and the investment expertise of the manager. The company's investment process combines valuation with qualitative considerations to identify attractive investment opportunities. It operates in one industry, being the securities industry, deriving revenue from dividend and trust distribution income, interest income, and from the sale of its trading portfolio.
61GF Score
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