February Monthly Performance Update
Steady February Results; MSMqi 2025 Maintains Strong Performance with Four New Additions
For the most up-to-date performance, visit the full index dashboard here. To see all of our return updates, go here.
MSMqi Platform Monthly Performance Summary
Our Microcap Quality Index Platform is based on a passive strategy built to give smaller cap investors a fertile mulitbagger hunting ground. So far, the MSMqi platform has identified 68 mutlibaggers (50% hit-rate).
Spotlight Index:
The average return for the Spotlight Index at the end of February was 77.77%, while the average peak return reached 124.74%. More details on this later. Spotlights are stocks from our MSMqi platform that we believe have at least 50% near-term upside and long-term multibagger potential. The Spotlight Index was launched in April 2024.
The MSMqi 2022:
The MSMqi 2022, our inaugural Index launched in February 2022, declined 0.75% in February. Despite the slight decrease during the month, cumulative performance since inception increased 3.55% to 109.68%, continuing to maintain a strong lead over major market benchmarks. The index holds 110 stocks, is a passive index with a CAGR of 20.12% (high CAGR was 39.97%).
The MSMqi 2025:
The MSMqi 2025 was the result of a rebalancing of the MSMqi 2022 we did in April 2025, by removing 23 stocks. You can still track them here.
Interestingly, this group of stocks is up 60.45% since we removed them, showing why investing is hard and validates the old saying: “If it ain’t broke, don’t fix it.”
Regardless, we think it validates our index qualification strategy.
The 2025 Microcap Quality Index (MSMqi) advanced 0.76% in February (actual average return using the prior month’s ending price as the starting price). While gains were modest during the month, the index has appreciated 35.48% since its inception in April 2025.
The MSMqi 2025 closed February with 107 stocks after adding four new companies during the month. The corresponding Cliff Notes, where we outline the investment thesis, upside potential and risks for each addition, are available below:
Software- Cliff Note #134 (Recurring revenue model; A software company that actually benefits from AI).
Defense- Cliff Note #135 (Huge inflection, after a decade of no growth); Good candidate for our next Spotlight Stock.
HAI.TO [Now FREE] - Cliff Note #136 (Presented at our defense conference, archived here)
Diagnostic Testing - Cliff Note #137 (About to inflect to profitability; 100% upside).
The strongest monthly performers in the MSMqi 2025 were:
BOF +53.69% (Dehydrated fruits and vegetables)
SIF +49.63% (Aerospace)
FTGFF +45.75% (Aerospace)
The three underperformers were:
EBS -28.13% (Mission critical vaccines)
WPR.V -26.32% (Immigration services)
MTRX -23.25% (Subsea)
See Full Performance Report Below…