The benchmark Russell 1000 Growth ETF rose 16.58%, while the strategy rose 17.40% net in the quarter, outperforming modestly. Almost all of the excess return came from stock selection. Outperformance was driven by the strategy’s high-conviction, differentiated holdings that sit well outside the benchmark’s mega-cap core. Dell was the standout gaining roughly 164%, and a broad set of names built on that: Roku, NetApp, Qualcomm, Teradata, MongoDB, Interactive Brokers, and Exelixis all added meaningfully.
The primary headwind was, by design, the strategy’s risk controls. A more diversified, valuation-aware posture means underweighting the very largest benchmark constituents when many are at nosebleed valuations like today. Several of those giant stocks went up and our modest underweights created some drag as we would expect. The underweights to Nvidia, Broadcom, and Tesla were the biggest relative drags. Even so, the strength and breadth of the differentiated stock-picking more than offset the mega-cap
L2 Us Large Cap Growth Commentary – June Q2 2026
Table of contents
When
July 15, 2026
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
Q2 2026 STRATEGY PERFORMANCE:
The benchmark Russell 1000 Growth ETF rose 16.58%, while the strategy rose 17.40% net in the quarter, outperforming modestly. Almost all of the excess return came from stock selection. Outperformance was driven by the strategy’s high-conviction, differentiated holdings that sit well outside the benchmark’s mega-cap core. Dell was the standout gaining roughly 164%, and a broad set of names built on that: Roku, NetApp, Qualcomm, Teradata, MongoDB, Interactive Brokers, and Exelixis all added meaningfully.
The primary headwind was, by design, the strategy’s risk controls. A more diversified, valuation-aware posture means underweighting the very largest benchmark constituents when many are at nosebleed valuations like today. Several of those giant stocks went up and our modest underweights created some drag as we would expect. The underweights to Nvidia, Broadcom, and Tesla were the biggest relative drags. Even so, the strength and breadth of the differentiated stock-picking more than offset the mega-cap