Q1 2026 STRATEGY PERFORMANCE:
The benchmark Russell 1000 Growth ETF fell -9.83%, while the strategy fell -8.36% net in the quarter. The risk controls that ensure the strategy will participate in the returns of the asset class on the way up, become our biggest headwind in absolute returns. Despite being underweight some of the biggest names in the benchmark that went down, our exposure still hurt absolute returns. Looking at how the strategy is measured, relative to the benchmark, being underweight some of the biggest stocks that went down combined with some strong stock-picking, L2’s US Large Growth Strategy reduced investors’ drawdown by nearly 1.5%.
MARKET OVERVIEW: QUICK SUMMARY
Large Cap Value and Midcap benchmark ETFs delivered modest but positive returns in Q1 2026 of 1.97% and 1.27%, respectively, due to their relatively large exposures to the Energy sector. In contrast, with much smaller weights in Energy and big losses in Information Technology stocks, Large Cap Core declined -4.29% and Growth, which has almost no Energy stocks, tumbled -9.83%.
L2 Large Cap Value Strategy – March Q1 2026
Table of contents
When
April 2, 2026
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
Q1 2026 STRATEGY PERFORMANCE:
The benchmark Russell 1000 Growth ETF fell -9.83%, while the strategy fell -8.36% net in the quarter. The risk controls that ensure the strategy will participate in the returns of the asset class on the way up, become our biggest headwind in absolute returns. Despite being underweight some of the biggest names in the benchmark that went down, our exposure still hurt absolute returns. Looking at how the strategy is measured, relative to the benchmark, being underweight some of the biggest stocks that went down combined with some strong stock-picking, L2’s US Large Growth Strategy reduced investors’ drawdown by nearly 1.5%.
MARKET OVERVIEW: QUICK SUMMARY
Large Cap Value and Midcap benchmark ETFs delivered modest but positive returns in Q1 2026 of 1.97% and 1.27%, respectively, due to their relatively large exposures to the Energy sector. In contrast, with much smaller weights in Energy and big losses in Information Technology stocks, Large Cap Core declined -4.29% and Growth, which has almost no Energy stocks, tumbled -9.83%.