SVT, Up 240%: Will Becomes Ninth Stock in the MSMqi To Get Acquired

Another example of the alpha that focusing on quality can produce

We just wanted to let you know that SVT became the 9th stock to be acquired in the MS Microcap Quality Index (MSMqi) (and one more is in takeover discussions), since we launched the index in February 2022.

Just like that, SVT moved to the top 10 spot from the #73 position, for a final return of 240%.

To be fair, we didn’t see this one coming. In fact, although the stock still resides in our MSMqi 2022, it does not reside in our rebalanced MSMqi 2025.

The company had been going through a multi-year restructuring and dealing with activists, with no real positive operational traction. The stock was not even close to being on my radar of a timely stock to own. Congrats to those who did :)

If you recall, I was a little hesitant about rebalancing the Index an quipped: “if it ain’t broke, don’t fix it.” Well, there you go lol.

Regardless, that’s what great about tracking a diversified set of quality companies and high probability turnaround set-ups.

Many of them are just going to be acquired over time. It’s happened time and time again throughout my three decades of investing and is always a nice surprise when you own one of them.

I believe this acquisition rend will continue to occur within the MSMqi in 2025 and beyond.

Here is a look at all the stocks that have been acquired that resided in the MSMqi, along with their returns: