Monthly Record Performance - November 2024
MSMqi keeps getting better, with a record number of multi-baggers in November and an 18.9% return, beating all comparable market indices.
With another month under our belt, it is time to look at what matters the most for our MS Microcap Quality Index (MSMqi): Performance.
Best month yet
With the index rising a record 18.9% in November, the post-election market rally did not ignore the MS Microcap Quality Index (MSMqi). This resulted in the MSMqi ending the month up 87.25%, on average, since inception in February 2022.
This compares well to the S&P 500, up 45.89%, on average, since the inception of the MSMqi in February 2022. It was up 7.93% for the month.
NASDAQ is catching up. The index was up 8.14% for the month and is now up 39.35%, on average, since the inception of the MSMqi.
The returns the MSMqi are delivering confirm our belief that there has been a strong change in investor sentiment. Investors are deploying capital away from overvalued large caps to undervalued smaller cap names.
The Microcap ETF (iShares) also had a tremendous month, but we still managed to beat it. The ETF was up 11.48% in the past month. It is up 12.63%, on average, since we started the MSMqi.
Here are the YTD comparisons that illustrates the alpha the MSMqi is generating. There are currently 102 stocks in the MSMqi (we aim to aid 1 to 3 stocks per month to the Index).
Five New Multi-Baggers! Another record…
We had five new stocks reaching the 100% return mark or more in November, which is another monthly record.
Park Ohio Holdings (PKOH) - Manufacturing and outsourcing services
Rave Restaurant Group (RAVE) - Restaurants
TAT Technologies (TATT) - Aerospace & Defense
Red Cat Holdings (RCAT) - Drones hardware and software
Covalon (CVALF) - Medical Devices - Wound Care
With the month behind us, it means, on average, a bit more than 40% of stocks in the MSMqi already went over 100%. You can see all of the multi-baggers here.
On average, it took eleven months for a multi-bagger stock to reach a return of 100%.
What we are also proud of is that more than two-thirds of the stocks in MSMqi are up right now. This means our positive return hit rate continues to be strong.
Spotlight Stocks continue to perform
We added one Spotlight last month, which was also Cliff Note #102, a high yielding dividend play.
You can see all the Spotlights here. We will continue to opportunistically add Spotlights.
Two New Cliff Notes In November
We published two new Cliff Notes in the past month.