August Monthly Performance Update - Index Rebalancing Working As Intended
A good month for the rebalanced MSMqi 2025: All indices are beating the market...
MSMqi 2025 Monthly Performance
The 2025 Microcap Quality Index (MSMqi) had a strong month, gaining 9.15% (actual average return using the prior month's ending price as the starting price) and is now up 35.42% (average return since its inception in April 2025). It is beating the market, although the iShares Microcap ETF is breathing down its neck. The MSMqi 2025 currently holds 91 stocks. The top 3 movers for the month were:
CDTI (Emission Control Materials) +328%
FSI (Environmental Friendly Chemicals) +111%
WSTL (Remote Monitoring of Critical Assets) +58%
The notable underperformers were
TSSI -49%
SRTS -39%
TGEN -21%
Even with these drawdowns, the MSMqi 2025 is performing nicely. It shows that a diversified portfolio strategy can work when you narrow down your universe of stocks to the better quality companies, hitting MultiBagger factors.
It’s also worth noting that TSSI and TGEN were still up 2,686% and 919% at the end of August, since being added to our MSMqi Platform in 2024.
About the MSMqi 2025: The MSMqi 2025 was our first rebalancing of the MSMqi 2022. The MSMqi 2022 is our original index that we launched in February 2022 and holds 110 stocks. After 3 years, we decided to perform our first rebalancing by removing 23 stocks that no longer qualify to be included in the index. We are calling this MSMqi 2025. New stocks are now added to the 2025 MSMqi. You can learn more about that decision by going here. Each stock in the index is accompanied by a research Cliff Note.
The MSMqi 2025 has maintained strong returns since its inception on April 30, outperforming the market indices.
MSMqi 2022 Monthly Performance
The MSMqi 2022, created in February 2022, had a challenging month, down about 10% in August. That being said, so far, it has already recouped this loss in September and the “alpha” it had accumulated over the last 3 years was so large that the market indices are still way behind its performance. The MSMqi includes 110 stocks. The good news is that the MSMqi 2025 is beating the MSMqi 2022, showing that the rebalancing has been effective.
About the MSMqi 2022: The MSMqi 2022 is our original index that we launched in February 2022 and holds 110 stocks. We no longer add stocks to this index, but still track the performance for transparency purposes. Each stock in the index is accompanied by a research Cliff Note.
As you can see, the YTD return for the 2022 MSMqi is still beating the market indices, despite the challenging month.
MSMqi Spotlight Stocks
We would also like to highlight that our Spotlight Stocks, high conviction stocks selected from our major indexes, are doing well. Below, you will be able to see all of the Spotlight stocks. The average Spotlight Stock return at the end of August was 48.46%, with an average peak return of 67.75%.
About the MSMqi Spotlights: Spotlights are stocks from our Indexes that we believe have at least 50% near-term upside and long-term multibagger potential. We created this Index in April 2024. Since the ended of the August we added the 12th and 13th Spotlight Stocks. See the selections here.
You can see all the Spotlight Stocks Below: