L2’s Large Cap Core strategy gained 0.46% net in the quarter while the benchmark Russell 1000 ETF rose 2.48%. The quarter closed out a solid year for the strategy (17.89% vs. 17.18% for the R1000 ETF). The strategy remains well ahead of its benchmark since inception.
Large Cap Value led the way higher in Q4 up 3.82%, Large Cap Core rose 2.48%, and Large Cap Growth rose 1.15%. Midcap, as measured by both the S&P Midcap (SPMD) and the Russell Midcap (IWR) benchmarks rose 1.63% and 0.12% respectively.
This quarter delivered something of a reprieve from an intense period of speculative behavior by market participants, although low-quality stocks continued to outperform their high-quality peers. Our Q3 2025 commentary used ARKK to highlight the extent of this risk-seeking behavior. From January 1st to September 30th, ARKK rose +52% while the Large Core ETF (IWB) rose 14% and Large Value (IWD) returned 11%. We also noted that from April 8th (the low point of the “Liberation Day”-induced market decline) through September 30th, the ARKK ETF rose an incredible 113%, despite its preference for exorbitantly priced stocks of loss-making companies.
L2 Large Cap Core – Q4 2025
Table of contents
When
January 5, 2026
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
Q4 2025 STRATEGY PERFORMANCE:
L2’s Large Cap Core strategy gained 0.46% net in the quarter while the benchmark Russell 1000 ETF rose 2.48%. The quarter closed out a solid year for the strategy (17.89% vs. 17.18% for the R1000 ETF). The strategy remains well ahead of its benchmark since inception.
MARKET OVERVIEW: QUICK SUMMARY
Large Cap Value led the way higher in Q4 up 3.82%, Large Cap Core rose 2.48%, and Large Cap Growth rose 1.15%. Midcap, as measured by both the S&P Midcap (SPMD) and the Russell Midcap (IWR) benchmarks rose 1.63% and 0.12% respectively.
This quarter delivered something of a reprieve from an intense period of speculative behavior by market participants, although low-quality stocks continued to outperform their high-quality peers. Our Q3 2025 commentary used ARKK to highlight the extent of this risk-seeking behavior. From January 1st to September 30th, ARKK rose +52% while the Large Core ETF (IWB) rose 14% and Large Value (IWD) returned 11%. We also noted that from April 8th (the low point of the “Liberation Day”-induced market decline) through September 30th, the ARKK ETF rose an incredible 113%, despite its preference for exorbitantly priced stocks of loss-making companies.