Mark Landau's best investment decision

Mark Landau’s best investment decision wasn’t a trade or a stock pick. It was taking a seat next to Raphael “Rafi” Lamm at a Woolworths broker presentation back in 2003. Landau, then at Invesco, and Lamm, from Cooper Investors, struck up a friendship that would change the course of their careers.

Four years later, the pair backed themselves and set up L1 Capital. The early years were tough, but their perseverance paid off when Catholic Super backed their fledgling long only Australian equities fund, paving the way for returns of more than 20% per annum. From those beginnings, L1 has grown into a $17 billion manager with funds spanning global equities, property, hedge funds and resources.

It hasn’t been a smooth ride. The 2018 launch of their listed investment company drew huge interest but tested their resolve as performance stumbled early. Landau and Lamm responded the only way they knew how, by buying more of their own stock and doubling down on process. Today, that fund has quadrupled from its lows.

Now, after merging with Platinum Asset Management, L1 Capital is a listed company valued at over $2 billion. It’s a new chapter for Landau, Lamm and their team, one Landau says marks the start of “something exciting.”

In this conversation, Landau reflects on his journey from a sports-mad Melbourne kid to leading one of Australia’s most-respected investment firms.

Listen to the podcast by clicking on the player or read a summary below.

This summary was prepared by a Livewire Editor with the assistance of AI.

An early passion for investing and meeting Raphael Lamm

Landau grew up in Melbourne, the youngest of four boys. His father, a Polish immigrant, ran a clothing factory in Richmond. His mother was bright and capable but had limited opportunities in the 1960s. “She could easily have been the CEO instead of the EA,” he said.

His father’s passion for horse racing taught him early lessons about value. “He told us not to back the best horse, but the best value horse,” Landau said. “Maybe that’s why I’m a value investor.”

His brothers sparked his interest in shares. “I was about 13 when I started investing,” he said. “The buzz came from talking stocks around the dinner table.” Two of his brothers went on to work in funds management.

At Monash University, Landau studied commerce and economics, with a focus on economic history. 

“The best way to predict the future is to understand the past,” he said. “Markets move in cycles, and the same patterns repeat.”

He began his career at Andersen Consulting before joining Invesco in 2002 as an analyst. There he learned the balance between quality and value. “You don’t want to buy a great company that’s too expensive, or a cheap one that’s broken,” he said.

In 2003, he met Rafi Lamm at a Woolworths broker lunch. Both were young, hungry and obsessed with markets. “We were the only two people turning up to company presentations no one else cared about,” he recalled. They shared a similar mindset and soon became close friends. Four years later, they decided to start a fund together.

L1's first big break

In 2007, Landau and Lamm launched L1 Capital with no outside backers. “It was riskier, but at that stage  we could afford a higher risk tolerance,” he said.

Their first big break came from Catholic Super, which committed to investing $50 million from day one. “I turned to Rafi stunned, did he just say 50 million?” Within about six months, they had $200 million under management from a handful of institutional investors.

Then the GFC hit. “It felt like the world was ending,” Landau said. “The ASX fell 60%.” But staying disciplined paid off. “We were buying Breville at a dollar, Seek at three, CBA below 30.” The rebound in 2009 set up years of strong performance.

In 2012, a large client demanded L1 halve its fees or lose the mandate. “We walked away,” Landau said. “That was the impetus to totally change our business and client base.” The decision led to the launch of the L1 Long Short Fund in 2014, allowing them to short stocks, hedge risk and invest offshore.

L1’s 2018 listed investment company (LIC) raising was a landmark moment and a test of resilience. The IPO attracted over $1.3 billion, one of the largest ever in Australia, but early performance disappointed. 

“It was like a dream and then a nightmare,” Landau said. “We felt terrible for investors.” 

The fund’s share price halved before recovering strongly, with Landau and Lamm investing heavily in the fund. “You can either crumble or double down,” he said. “We chose to double down.”

Finding value in today’s markets

L1’s approach is what Landau calls “quality value,” combining sound fundamentals with attractive prices. “You’re not buying broken businesses or paying crazy multiples,” he said. “It’s about management, industry structure and cash flow.”

Shorting is a key part of the strategy. “It’s the inverse of what we do on the long side,” he said. “We look for expensive, low-quality companies with clear catalysts for a fall.” The fund’s short positions help protect capital during downturns. “We’ve preserved about 90% of investors’ capital in down months,” he said.

Today, Landau sees limited value in local markets. “It’s hard to say CBA or Wesfarmers are cheap,” he said. Instead, he sees opportunity in European infrastructure stocks, Canadian miners and UK banks still trading on single-digit earnings multiples.

Looking ahead, he expects more momentum. “Fiscal stimulus and AI investment could drive a big bull market in 2026.”

Asked about tariffs and their impact on growth, Landau was measured. “From an equity market point of view, the tariffs are a relatively minor factor,” he said. “Some sectors or countries might be affected, but not enough to derail global growth.”

His bigger concern lies elsewhere. “If you saw 10-year or 30-year US bond yields move through 5% and towards 6%, that would be far more worrying,” he said. “A big blowout in credit spreads would also be a real alarm bell.”

Landau’s caution comes from experience. “Starting L1 a year before the GFC, we’ve never forgotten what stress in the bond market can do,” he said. “Equity investors often think their market drives everything, but really the bond market is the boss. If it’s not happy, no one’s happy.”

Life as a listed company

In 2025, L1 merged with Platinum Asset Management, taking a 74% stake in the combined entity. The deal gave L1 a listed structure and a $2 billion market value. “It’s a new experience after 18 years private, but we’re excited,” Landau said.

The merger brought new growth ambitions. A $300 million capital raise, backed by Chris Mackay and Soul Patts, provides the firepower. Landau outlined four growth avenues: growing existing funds, launching new ones, forming joint ventures, and pursuing selective acquisitions. 

“Every fund must pass one test, would Rafi and I invest our own money in it?” he said.

The approach reflects L1’s culture: practical, disciplined, and owner-driven. “We want to build the most respected investment management business in Australia,” Landau said. “It’s not about chasing a dollar figure. It’s about building something we can be proud of.”

Overcoming health issues

In 2024, Landau was diagnosed with early-stage cancer. He took three months off but stayed involved. “I was messaging the team 20 or 30 times a day,” he said.

His colleagues, including long-time COO Joel Arber, stepped up. “Joel’s been instrumental to our success,” Landau said. “Everyone thinks of Rafi and me as L1, but Joel’s been there for 15 years making it all work.”

The experience reinforced Landau's priorities. “Life’s about relationships - family and friends,” he said. His brother Rob, who supported him through treatment, was a big influence.

Rather than slowing down, the illness renewed his energy. 

“It’s probably got me even more fired up,” Landau said. “There’s so much more I want to build at L1.”

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