Why the best performing hedge fund is selling

LHC has emerged as the top performing hedge fund in 2018-19, but now it's selling some of its hottest stocks because prices are too high.

Jonathan Shapiro and Vesna Poljak

Jul 24, 2019 – 11.11am

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LHC Capital, the Sydney-based hedge fund which topped the returns table in 2018-19, says it is responding to a "valuation conundrum" caused by lower interest rates by selling its winning trades.

The $400 million fund's chief investment officers, Marcus Hughes and Stephen Aboud, told investors in the LHC high conviction fund that the strategy returned 24.8 per cent after fees over the financial year, including 8.5 per cent in the fourth quarter.

Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney.

Vesna Poljak is the Companies editor. She was previously the Markets editor with a special interest in the investment industry, hedge funds and accounting. She is based in the Sydney newsroom.