L1 Long Short Fund (ASX:LSF) reported portfolio returns of 13.3% for the September quarter, up from returns of 2.4% last year, according to a Friday Australian bourse filing.

Over the past five years, portfolio return was 22% per annum, per the filing.

The fund said the Australian equity market is "relatively" fully valued, with several large-cap stocks trading far above historical multiples and global peers.

Despite a slowing macro backdrop, the company said its median long position should deliver double-digit earnings per share growth and a "compelling" medium-term return profile.

L1 Long Short Fund's shares fell nearly 2% in recent Friday trade.