L1 Global Long Short Fund (ASX:GLS) said it returned negative 7% in the March quarter, compared to a negative 3.6% return for the MSCI World index, according to a Tuesday Australian bourse filing.

The fund said since its inception in January 2025, the Global Long Short Fund Strategy has returned 53.9% per year, compared to 13.2% per year for the MSCI World index, the filing added.

Strong returns at the start of the quarter were more than offset by a sharp fall in global equity markets in March, as the war in Iran triggered what the fund described as the worst oil supply shock in history, the filing added.

The fund increased exposure to copper, gold, construction materials, and banking during March, while reducing exposure to energy, infrastructure, and unprofitable technology and artificial intelligence stocks on the short side.