L1 Long Short Fund (ASX:LSF) L1 Long Short Fund said its portfolio returned negative 0.9% in February, while over the past year the portfolio has returned 60%, according to a Tuesday Australian bourse filing.

The fund said it believes the Australian equity market remains relatively fully valued, with several large-cap companies, particularly within the ASX20, trading at multiples well above historical levels and global peers.

The fund added that it continues to identify a range of undervalued companies offering a combination of strong earnings growth, shareholder-aligned management, conservative balance sheets, and valuation support, the filing added.

The company's shares were up 2% in recent Tuesday trade.