The long portfolio has materially outperformed the benchmark while currency has added slightly in excess of the targeted 1.5% p.a. alpha returns. We note alpha attribution by sector and geography has been broad, reflecting well on the overall strength of the team.

The small investment team has diverse and directly relevant experience in the resources sector, with both members being qualified geologists and significant experience in resources financing and investment. Tempering this positive, however, we do note that there is significant key man risk and apart from duties with the Fund the team members are also engaged in other non-related activities.

We have assigned L1 Long Short Fund Limited (expected ASX code: LSF) a Recommended Plus rating. The company is newly established and as such has no performance history, however, the Manager is responsible for the management of the L1 Capital Long Short Fund which uses the same investment process and strategy that will be used for the LSF portfolio.

Our LIC Research Update is based on our own data collection of the sector together with research reviews of certain LICs

This follows our suspended rating on Contango MicroCap (as it was then known) - NAOS Asset Management has decided it does not wish to proceed with a review so our rating for NSC is withdrawn and we are ceasing coverage.