Q4 2025 STRATEGY PERFORMANCE:
The benchmark Russell 1000 Growth ETF rose 1.15%, while the strategy rose 2.84% net in the quarter. The quarter closed out a solid year for L2 Growth (18.82% vs. 18.33% for the R1000 Growth ETF). We have stated on many occasions that our strategy’s preference for reasonably priced and quality-oriented growth means that it may under perform during periods of speculative frenzy. Fortunately, we saw significant contributions from a few of our active bets this quarter, which led to out performance vs. the benchmark.
For investors like us, moments like these are an essential component of how our disciplined and fact-based investment process adds value over a full-market cycle.
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.
L2 Large Cap Growth – Q4 2025
Table of contents
When
January 5, 2026
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
Q4 2025 STRATEGY PERFORMANCE:
The benchmark Russell 1000 Growth ETF rose 1.15%, while the strategy rose 2.84% net in the quarter. The quarter closed out a solid year for L2 Growth (18.82% vs. 18.33% for the R1000 Growth ETF). We have stated on many occasions that our strategy’s preference for reasonably priced and quality-oriented growth means that it may under perform during periods of speculative frenzy. Fortunately, we saw significant contributions from a few of our active bets this quarter, which led to out performance vs. the benchmark.
For investors like us, moments like these are an essential component of how our disciplined and fact-based investment process adds value over a full-market cycle.
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.