L1 Gold Fund Increases Long Positions Amid Price Dip

The L1 Gold Fund is aggressively increasing its long equity positions in mid-cap developers, such as Eldorado Gold Corp and K92 Mining Inc., following a 16% drop in gold prices since the outbreak of the US-Iran war in February. Co-manager Raphael Lamm asserts that these price declines are temporary and that medium-term demand remains supported by growing central-bank allocations and unsustainable global fiscal conditions, specifically noting that US government debt has exceeded $40 trillion.

The Melbourne-based fund manages A$1.5 billion and has achieved a 235% return since its February 2025 launch. This performance was driven by a strategy of pairing long positions in gold-related stocks with short positions in gold futures.

Lamm and co-manager Mark Landau have signaled further confidence in the fund's trajectory by increasing their personal stakes following an A$160 million entitlement offer in August. The fund is currently maintaining a net long position in the low- to mid-60% range.