A Monster Month For The Microcap Quality Index (MSMqi)

Full-on update on the record performances of our indices, spotlights stocks are performing well and we share some of the most important articles of the past month…

Jul 11, 2025

MSMqi indices are crushing it…

If you recall, we rebalanced the 2022 MS Microcap Quality Index (MSMqi) in April 2025, which we continue to track. You can see that using this link.

You can also watch the video, below, on the rationale behind why we made the move to rebalance the original MSMqi after launching it in February of 2022 👇🎥

MSMqi First Rebalancing

MS Microcaps LLC

Apr 30

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We are currently tracking 120 companies across both indexes, with accompanying Cliff Notes (archived here).

We ended June on an extremely positive note, with both indices delivering significant gains.

(As a reminder, we are calculating the returns by taking the cumulative average current returns of all positions each month. Returns represent performance from the date at which a stock was added to the Index)

After a tough start to 2025, our original 2022 MSMqi index, launched in February 2022, was up almost 41% in a single month, and quickly reached new highs…

By the end of June, this index was operating at a CAGR of around 24.6%. It’s important to remember that this CAGR is based on an equally weighted passive return, assuming that we are not removing stocks from the index.

The rebalanced 2025 index also performed well, since its April launch. It was up about 11% in the past month and is now outperforming the market. This index will also be treated under an equally weighted passive return assumption.

The 2025 index can be seen here and the 2022 version here.

As a reminder, here is the basic framework of a Cliff Note that is included with each stock we add to the MSMqi:

Important Note

There is something we need to stress about our catalyst-based multibagger strategy.

Because the team is doing a great job finding undervalued companies at growth inflection points, a lot of these stocks tend to rise quickly and sharply during normal market conditions.

Unfortunately, what goes up must come down in times of stress. When you have a pullback in the market like we did earlier this year, stocks with parabolic charts will retrace pretty hard as panic leads to “behavior biased” profit-taking.

We also cover a decent amount of restructuring and turnaround stories, where investors may lose confidence in times of stress.

In early 2025, the MSMqi 2022 underperformed the market for the first time, and sharply.

However, the comeback of the MSMqi 2022 shows the resiliency and the power of finding great companies while hanging in there during times of volatility.

We feel really good that our indexes are quickly beating the market again.

Some of the best opportunities to find great entry points for stocks in our indexes will be during market pullbacks.

We continue to believe that the MSMqi products will become the best hunting ground for those investors and Substack authors who like fishing for some of the best multi-bagger microcap opportunities across North America.

In case you missed it

Here are articles that we believe are must-reads from the past month. Our multi-bagger hit rate remains impressive at over 40% of stocks already having reached a return of at least 100% since being added to our indexes. During June, our Indexes nabbed the 50th multibagger (actually 51 now).

We hit our 50th multi-bagger...

MS Microcaps LLC

Jun 18

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We also added a new spotlight stock.

Spotlight Stock #9 From Our Microcap Quality Index (MSMqi)

MS Microcaps LLC

Jun 10

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Our spotlight stocks are stocks we highlight from our main indexes that we believe have the potential to rise at least 50% in the shorter term and also have long-term multibagger potential.

Below, you can see that the spotlights are also outperforming the market, although the average return has considerably come off its highs as some stocks are still clawing their way back from 2025’s early pullback.