As we mentioned in our Q2 2025 Quarterly commentary, our growth strategy’s preference for reasonably priced and quality-oriented growth means that our underperformance is expected in quarters where so much of the return came from so few stocks. Historic concentration risk has once again presented itself as the MAG 7 are back to greater than 50% of the growth index.
We believe the prospects for benchmark aware strategies with high active share like ours may provide significant return advantages for long-horizon investors. L2’s Growth strategy works to make sure investors participate in some of the highs and lows associated with the popular AI stocks that dominate the index. At the same time, when some of their valuations prove too stretched relative to high quality growth trading at reasonable prices
we embrace the opportunity.
L2 Large Cap Value Trade Commentary – August Q2 2025
Table of contents
When
August 20, 2025
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
SUMMARY:
As we mentioned in our Q2 2025 Quarterly commentary, our growth strategy’s preference for reasonably priced and quality-oriented growth means that our underperformance is expected in quarters where so much of the return came from so few stocks. Historic concentration risk has once again presented itself as the MAG 7 are back to greater than 50% of the growth index.
We believe the prospects for benchmark aware strategies with high active share like ours may provide significant return advantages for long-horizon investors. L2’s Growth strategy works to make sure investors participate in some of the highs and lows associated with the popular AI stocks that dominate the index. At the same time, when some of their valuations prove too stretched relative to high quality growth trading at reasonable prices
we embrace the opportunity.