May Monthly Performance Update: +7%
MSMqi Indices Post Another Positive Month; Multibagger Count Rises to 75
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
May saw another positive month across MSMqi indices, with the MSMqi 2025 advancing 6.69% and the MSMqi 2022 rising 7.30%. Broader markets also finished higher, with the SPY up 5.26%, the NASDAQ gaining 8.36%, and the IWC increasing 6.70%. Participation was more limited this month, with 58% of stocks in the MSMqi 2025 delivering positive returns.
Our Microcap Quality Index Platform (MSMqi po) is based on a passive strategy built to give smaller cap investors a fertile multibagger hunting ground. At the end of May, the platform tracked 144 unique stocks across its indices and has now produced 75 multibaggers in total (52% hit-rate).
Spotlight Index:
The MSMqi Spotlight Index currently comprises 15 high conviction names selected from across the MSMqi platform. We believe new additions to this group offer at least 50% near term upside, along with the potential to become long term multibaggers. The Spotlight Index was launched in April 2024.
At the end of May, the group delivered an average return of 106.59% across all stocks, with an average peak return of 141.70%.
73% of the stock’s reached the 50% short-term hurdle.
The MSMqi 2022:
The MSMqi 2022, our inaugural index launched in February 2022, advanced 7.30% for the month, bringing average returns across all stocks since inception to 149.12%, with a CAGR of 23.7%. This index continues to demonstrate steady long term compounding despite periodic volatility. It holds 110 stocks and follows a passive strategy.
The MSMqi 2025:
The MSMqi 2025 gained 6.69% for the month (based on the average return using the prior month’s ending price as the starting point), with average a return across all stocks since inception of 55.69%.
The MSMqi 2025 was the result of the April 2025 rebalancing of the MSMqi 2022, which involved the removal of 23 stocks. These removed stocks are up 71.0% since we removed them. You can still track them here.
The MSMqi 2025 currently holds 114 stocks, with four new additions during the month. The corresponding Cliff Notes, where we outline the investment thesis, upside potential, and risks for each addition, are available below:
Coating materials - Cliff Note #141 (Defense Exposure; Reshoring Tailwinds)
Electronic equipment enclosures - Cliff Note #142 (Capacity Expansion; AI/Data Center Tailwinds)
Infrastructure construction company - Cliff Note #143 (Backlog Visibility; Margin Inflection)
Accounting workflow SaaS - Cliff Note #144 (Incentivized Sale; Strategic Buyer)
The strongest monthly performers in the MSMqi 2025 were:
SECUF (integrated security services) +99.36%. It became the 11th stock to be acquired after being added to the MSMqi
VELO (metal-3D-printing) +71.38%. Continues to rise on the satellite theme, especially as SpaceX is getting ready to IPO.
DAIO (device programming systems) +56.09%. There’s a percolating AI theme that’s potentially developing.
See Full Performance Report Below…