L1 Capital posts bumper $100m profit to lead the country’s best private stock pickers

Mark Landau and Rafi Lamm’s firm keeps outperforming other big names like David Paradice and Peter Cooper, while Geoff Wilson’s private fund tripled its profits. SEE LIST

Big winners this year included Peter Cooper, pictured with wife Suparna Bhasin, L1 Capital founders and co-chief investment officers Mark Landau and Rafi Lamm and Geoff Wilson.

Boutique funds management firm L1 Capital’s profits – and dividends paid to its founders – are more than double of its best performing peers.

An analysis of the financial results of Australia’s best privately-held stock picking firms shows the winners and some losers over the last year.

No 1 - L1 Capital

Headed by Melbourne pair Mark Landau and Rafi Lamm, L1 posted the biggest profits among 10 of the best-known fund managers.

L1 Capital, which manages money privately and ASX-listed invested companies such as the $2bn L1 Long Short Fund, recorded a $101m net profit from $171m revenue for the 2024 financial year according to documents lodged recently with the corporate regulator.

That result compared with a $73m net profit in 2023 from $147m revenue.

L1 paid its founders a $45.5m dividend during the financial year and then another $69m fully franked dividend in October.

Mr Landau had stepped down in April to undergo medical treatment for an early-stage treatable cancer and to allow time for treatment and a period of recovery, but resumed his duties in August.

L1 Capital’s Mark Landau and Rafi Lamm.

A recent presentation to investors for the Long Short Fund said Mr Landau and Mr Lamm have about 90 per cent of their investable wealth – they have now shared almost $400m in dividends since 2020 – invested in L1 funds.

L1 has positions in stocks such as Qantas and Downer on the ASX, as well as Mineral Resources. It recently lifted its stake in MinRes in the wake of the tax scandal engulfing billionaire founder Chris Ellison.

It also has holdings in UK-listed stocks such as bank Natwest and supermarket Tesco and gambling giant Flutter, which has recently moved its listing to New York.

In its recent market presentation, L1 Capital said it had lifted its holdings in infrastructure, gold and materials stocks in the last six months, and UK-based businesses, and sold down Australian industrials and copper stocks.

The L1 Long Short Fund’s net tangible assets were up 14 per cent in the year to September 30, which was 7.8 per cent less than its benchmark S & P/ASX 200 Index – though it has outperformed by 10 per cent in the past five years.

The private L1 Capital financial report showed it received $52m in management fees (up $10m from 2023) and $118m in performance fees (a $14m increase).

Mr Landau and Mr Lamm have outperformed most of their privately owned fund manager peers, including big names like Paradice Investment Management, Cooper Investors, Greencape Capital and Vinva Investment Management.

Cooper Investors, founded by Peter Cooper - a member of The List - Australia’s Richest 250 - recorded a slight increase in profit, from $11.8m last year to $13.7m in 2024.

No 2 - Hyperion

Brisbane firm Hyperion made a $57m net profit from $98m revenue in 2024, with funds such as its Global Composite, Australian Broad Cap and Australian Large Cap outperforming its benchmarks.

Led by Mark Arnold, Hyperion executives own just over half the business, with the remainder owned by the ASX-listed Pinnacle Investment Management.

Mark Arnold. Picture: supplied

Pinnacle also has a 23.9 per cent stake in Antipodes, which recorded a flat $13.4m net profit from $56m revenue. It has about $10bn funds under management and is led by chief investment officer Jacob Mitchell, who started the business in 2015. Revenue comprised of about $52m in fund management fees and commissions and $4.5m in performance fees.

No 3 - Greencape

Greencape Capital, led by David Pace and Matthew Ryland, has seven employees and doubled the dividend it paid its owners and founders to $33m, compared to $17.9m last year, after making a $30m net profit. Its revenue was $59m, about $3m more than in 2023. Performance fees dropped from $2.9m in 2023 to about $628,000 this year, with most of the remaining revenue being management fees.

No 4 - Wilson Asset Management

Meanwhile, Geoff Wilson’s privately-held Wilson Asset Management (International) paid him $60m in fully franked dividends. His firm derives management frees from the various Wilson listed investment companies.

Geoff Wilson got a $60m dividend this year. Picture: Nikki Short

Wilson’s private company had $112m revenue, up from $64m in 2023, with profits rising from $9.8m in 2023 to $30m in 2024.

The founders of Vinva Investment Management, who sold a 29.5 per cent stake to the listed Magellan for $135m cash in August, shared a $15.3m dividend.

Vinva is a quant investor that had about $22bn assets under management at June 30, according to its financial report, comprising $4.3bn managed investment schemes and $17.8bn in separately managed accounts.

Originally published as L1 Capital posts bumper $100m profit to lead the country’s best private stock pickers