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Von Columbia University Alumni in San Francisco entwickelt

**Lena:** You know what caught my attention this morning? I was looking at L1 Capital's track record, and they've delivered 20.7% annual returns since 2014. That's not just beating the market - that's absolutely crushing it.
**Miles:** Right, and here's what's really fascinating - they're not just another long-only fund riding the bull market wave. L1 Capital runs what they call a long-short strategy, which means they're making money when stocks go up AND when they go down.
**Lena:** Wait, so they're actually profiting from falling prices too? That sounds almost too good to be true.
**Miles:** Exactly! And get this - during the 46 months when the ASX 200 fell since their inception, the market dropped an average of 3.1% per month, but L1's fund only declined 0.4%. They've protected about 85% of capital in down markets.
**Lena:** That's incredible downside protection. I mean, most investors would kill for that kind of risk management.
**Miles:** It's interesting how they've built this into a $4.6 billion operation by focusing on what they call "absolute returns" rather than just trying to beat a benchmark. So let's dive into exactly how their long-short strategy works and what we can learn from their approach.