Mid-caps: What the management are telling investors

When a sector slumps in the stock market, investors look to analysts and forecasters for clarity. But the real insiders are the company management teams. Eugene O'Neill explains what mid-cap leaders have been telling the market.

Given the sharp pullback among mid-cap companies and the smaller end of the FTSE 100, many investors are left wondering if the 15-year outperformance of mid-caps is over. From 1998 to the end of 2013, the mid-cap index has outperformed the FTSE All-Share by nearly 200%. A cursory glance at the recent relative performance of the two indices makes the cause for concern clear. Mid caps underperformed the FTSE All-Share by roughly 8% over a two-month period. What the management say: Ashtead Looking back, it is easy to see many possible triggers. The temptation is to sell mid caps. ...