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.
Unlike private vehicles, L2’s SMA products do not use leverage, have strong returns vs. their various benchmarks, and have provided our clients with active management at passive prices.
While owning listed securities means your holdings will move up and down daily, this is not a bad thing. We believe that “volatility” in listed securities is now a welcome feature. Stocks are, after all, fractional ownership in a going concern. In our view, anyone with a substantial time horizon will be well served by keeping it simple: invest in high-quality listed stocks which have regulatory oversight that we believe are both valuable and underappreciated in the current environment.
L2 Midcap Trade Commentary – November Q4 2025
Table of contents
When
November 1, 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.
Unlike private vehicles, L2’s SMA products do not use leverage, have strong returns vs. their various benchmarks, and have provided our clients with active management at passive prices.
While owning listed securities means your holdings will move up and down daily, this is not a bad thing. We believe that “volatility” in listed securities is now a welcome feature. Stocks are, after all, fractional ownership in a going concern. In our view, anyone with a substantial time horizon will be well served by keeping it simple: invest in high-quality listed stocks which have regulatory oversight that we believe are both valuable and underappreciated in the current environment.