We continue to believe the Midcap space offers generational opportunities to invest in high-quality companies with significant growth potential at reasonable to outright cheap prices. Investor herding into typically opaque, complex, and expensive private funds based on historical returns we feel are unlikely to be repeated appears to be reversing.
There may be a paradigm shift underway as everyone from endowments to foreign countries recognize that the 29,000 companies held in private funds are unable to list due to valuations above what public markets will bear. We believe listed equities offer some of the most compelling opportunities we have seen in our 30 years of managing money.
L2 Midcap Trade Commentary – August Q2 2025
Table of contents
When
August 20, 2025
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
ASSET CLASS COMMENTS:
We continue to believe the Midcap space offers generational opportunities to invest in high-quality companies with significant growth potential at reasonable to outright cheap prices. Investor herding into typically opaque, complex, and expensive private funds based on historical returns we feel are unlikely to be repeated appears to be reversing.
There may be a paradigm shift underway as everyone from endowments to foreign countries recognize that the 29,000 companies held in private funds are unable to list due to valuations above what public markets will bear. We believe listed equities offer some of the most compelling opportunities we have seen in our 30 years of managing money.