Returns
We launched our Tier One Quality Index in February of 2022. Each stock in the index is accompanied by a research Cliff Note. From the start, we have been crushing all major indices. Here is the summary of how Cliff Notes are performing.
All indices start 02/13/2022.
Alpha over the market
Note: Remember that this is MSM’s passive index, where superior returns are achieved despite keeping stocks that might not deserve to be in the index anymore. We didn’t want to have any selection bias in our first iteration of launching an index to showcase the power of investing in quality microcaps with multi-bagger markers.
Performance spread - not just a few winners
The performance is not driven by just a few top performers.
Volume is solid, does not skew performance
We are not worried about the common argument that all microcaps are uninvestable due to a lack of liquidity.
Importantly, if you adjust performance for the volume weightings (so that smaller volume stocks represent a smaller part of the index), the performance of the MSM index is not worse! This means the average return is NOT skewed by some low float stocks jumping 200%.