LHC Capital has made a 14 per cent return in the past three months, buoyed by a strong rebound in some of the hedge fund’s biggest stock bets and a timely investment in Queensland’s Dalrymple Bay Infrastructure, which it says is about to go on a tear.

The Sydney-based short seller started buying shares in Dalrymple Bay, the world’s largest metallurgical-coal export terminal, after US private equity giant Brookfield Infrastructure sold down a large chunk of its stake last month.