Buy, hold, sell: L1 Long Short Fund, REA, Wesfarmers shares
S&P/ASX 200 Index (ASX: XJO) shares edged 2.77% higher and generated total returns, including dividends, of 7% in FY26.
Among the 11 market sectors, materials was the best performer of the year, rising 47% and producing a total return of 52%.
The worst-performing sector was healthcare, which fell 37% and produced a total negative return of 36%.
On The Bull this week, Andrew Wielandt from DP Wealth Advisory lets us in on some stock tips for the new financial year.
L1 Long Short Fund (ASX: LSF)
Wielandt has a buy rating on this ASX listed investment company (LIC), which he holds in his personal self-managed super fund.
He explains:
LSF provides exposure to long and short strategies on a global scale, meaning it takes either a positive or negative view on each position in the portfolio.
The strategy holds between 50 and 100 companies, with 30 per cent or less held offshore.
The fund has delivered returns of 20.2 per cent per annum since its inception in 2014.
LSF has risen from $2.97 on July 10, 2025 to trade at $4.66 on July 9, 2026.
The fund has a strong track record of delivering results and I believe the outlook is bright.
Wesfarmers Ltd (ASX: WES)
The Wesfarmers share price rose 7% to close out FY26 at $90.40 per share.
Wielandt has a hold rating on the market's largest ASX 200 consumer discretionary share.
He said:
WES is one of Australia's largest diversified industrial companies, spanning retail, chemicals, fertilisers, industrials and health.
The retail division, including hardware giant Bunnings, Kmart Group and Officeworks, continues to perform well despite a slowing domestic economy.
Investment in the Priceline pharmacy chain provides upside potential.
WES generates a strong return on shareholders funds, but the stock is trading near a 12-month broker consensus target price, so we retain a hold recommendation.
REA Group Ltd (ASX: REA)
The REA share price tumbled 42% to finish FY26 at $139.19.
Wielandt has a sell rating on this ASX 200 communications share.
He explained:
REA is the dominant online property platform in Australia. But competitor Domain Holdings Australia, acquired by US listed company CoStar Group, is expected to provide fierce competition.
Federal Budget changes to capital gains tax and negative gearing leaves property far less appealing to investors.
The Australian property market is slowing, which could impact REA listing volumes moving forward.
Auction clearance rates have been falling in Sydney and Melbourne. Other stocks appeal more at this stage of the cycle.
The post Buy, hold, sell: L1 Long Short Fund, REA, Wesfarmers shares appeared first on The Motley Fool Australia.
Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CoStar Group and Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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