Q3 2025 STRATEGY PERFORMANCE:
The Russell 1000 Value ETF rose 5.29%, while L2’s strategy rose 7.74% net in the quarter. The quarter was a continuation of the strong performance seen in Q2 2025 for the strategy.
Since inception in 2013, L2’s Large Cap Value strategy has outperformed the Russell 1000 Value ETF by over 50%. We continue to believe that, similar to the peaks of the Nifty Fifty bubble and the dot.com bubble, we are at a generational moment for disciplined, low-cost, evidence-based active managers like ourselves. Against this backdrop, we find the opportunities in large cap value to be as compelling as they are important to achieve diversification from the highly concentrated large core and growth indexes.
MARKET OVERVIEW: QUICK SUMMARY
Large Cap Growth led the way higher in Q3 again, up 10.43%, Large Cap Core rose 7.92%, and Large Cap Value rose a respectable 5.29%. Midcap, as measured by both the S&P Midcap (SPMD) and the Russell Midcap (IWR) benchmarks rose 5.52% and 5.33% respectively.
The importance of building a financial plan with your Advisor – and sticking to it – has never been more important in our view. Rarely has the market given investors such a brutal reminder that trying to time markets around macro news is a fool’s game. From the start of the year through April 8th, most US benchmarks were down between -15% and -20%; the one exception being the Large Cap Value ETF which fell “only” -10%.
L2 Large Cap Value – Q3 2025
Table of contents
When
September 30, 2025
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
Q3 2025 STRATEGY PERFORMANCE:
The Russell 1000 Value ETF rose 5.29%, while L2’s strategy rose 7.74% net in the quarter. The quarter was a continuation of the strong performance seen in Q2 2025 for the strategy.
Since inception in 2013, L2’s Large Cap Value strategy has outperformed the Russell 1000 Value ETF by over 50%. We continue to believe that, similar to the peaks of the Nifty Fifty bubble and the dot.com bubble, we are at a generational moment for disciplined, low-cost, evidence-based active managers like ourselves. Against this backdrop, we find the opportunities in large cap value to be as compelling as they are important to achieve diversification from the highly concentrated large core and growth indexes.
MARKET OVERVIEW: QUICK SUMMARY
Large Cap Growth led the way higher in Q3 again, up 10.43%, Large Cap Core rose 7.92%, and Large Cap Value rose a respectable 5.29%. Midcap, as measured by both the S&P Midcap (SPMD) and the Russell Midcap (IWR) benchmarks rose 5.52% and 5.33% respectively.
The importance of building a financial plan with your Advisor – and sticking to it – has never been more important in our view. Rarely has the market given investors such a brutal reminder that trying to time markets around macro news is a fool’s game. From the start of the year through April 8th, most US benchmarks were down between -15% and -20%; the one exception being the Large Cap Value ETF which fell “only” -10%.