Australian investment firm L1 Group is backing former L1 Capital analyst Andrew Lin as he prepares to take his hedge fund strategy to external investors, in the firm’s first new investment partnership since 2021, according to a report by the Financial Standard.
The new venture, PXC Advisors, will launch its flagship Dynamic Return Strategy to outside investors in September. Lin has managed the strategy since January 2024 using capital from L1 Capital’s founders and employees.
The strategy invests in as many as 60 stocks across developed and emerging markets, targeting annual returns of at least 10%. L1 Group said the strategy has generated annualised net returns of 51% since inception.
Lin founded PXC Advisors after spending eight years at L1 Capital, where he was a senior investment analyst within the firm’s long-short investment team. He joined the manager in February 2018.
The portfolio manager’s background extends beyond asset management. Lin previously co-founded health technology business CliniCloud, now known as Cortical Labs, and spent two years as a senior associate consultant at Bain & Company. He is also a qualified medical doctor.
PXC’s investment approach centres on identifying inflection points in companies and industries where the manager believes future earnings prospects differ materially from prevailing market expectations.
The strategy has a particular focus on technology, industrials, healthcare and other growth-oriented sectors, where Lin believes periods of structural or earnings change can create opportunities for active managers.
The partnership represents L1 Group’s first new investment venture since it launched the L1 Capital Catalyst Fund in 2021 and forms part of a broader push to identify and support specialist investment managers.
L1 Group chief executive and managing director Julian Russell said the firm intends to work with experienced investors and provide the infrastructure required to develop their investment businesses.
PXC Advisors will operate from L1 Group’s Melbourne headquarters and have access to the group’s trading, compliance, operational and distribution infrastructure.c
