L2’s Large Cap Core strategy rose 4.47% net in the quarter while the benchmark Russell 1000 ETF rose 2.79%. For the full year, the strategy rose 31.47% vs. 24.32% for the benchmark and we are comfortable with results. Over the long term, your managers believe an inhospitable mix of concentration and overvaluation in the Large Cap indexes has created one of the most compelling entry points in a generation for disciplined, evidence-based, low cost active investors like us. Quite simply, some of the market’s most attractive and proven blue chips are trading at significant discounts to the broad market benchmarks. Empirically, today looks to us much like an unfortunate mix of the Nifty Fifty bubble and the dot.com bubble.
U.S. equities as measured by the Russell 1000 ETFs experienced a wide divergence in outcomes over the fourth quarter. The Russell 1000 Value ETF fell -1.95%, the Russell Core ETF rose 2.79% while Russell’s Large Cap Growth ETF rose 7.09%. 3Midcap stocks as measured by the Russell Midcap ETF rose 0.65% and 0.40% for the S&P Midcap ETF which tends to favor higher quality names.
L2 US Large Cap Core Strategy – Q4 2024
Table of contents
When
July 16, 2025
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
Q4 2024 Strategy Performance
L2’s Large Cap Core strategy rose 4.47% net in the quarter while the benchmark Russell 1000 ETF rose 2.79%. For the full year, the strategy rose 31.47% vs. 24.32% for the benchmark and we are comfortable with results. Over the long term, your managers believe an inhospitable mix of concentration and overvaluation in the Large Cap indexes has created one of the most compelling entry points in a generation for disciplined, evidence-based, low cost active investors like us. Quite simply, some of the market’s most attractive and proven blue chips are trading at significant discounts to the broad market benchmarks. Empirically, today looks to us much like an unfortunate mix of the Nifty Fifty bubble and the dot.com bubble.
Market Overview
U.S. equities as measured by the Russell 1000 ETFs experienced a wide divergence in outcomes over the fourth quarter. The Russell 1000 Value ETF fell -1.95%, the Russell Core ETF rose 2.79% while Russell’s Large Cap Growth ETF rose 7.09%. 3Midcap stocks as measured by the Russell Midcap ETF rose 0.65% and 0.40% for the S&P Midcap ETF which tends to favor higher quality names.