Why mid caps have not had their day

MID CAPS

Roland Arnold, co-manager of the BlackRock UK Special Situations fund, explains why as a global window on world trade, UK mid caps offer the best opportunities

The crux of mid-cap investing is that over time, small and mid-cap companies typically outperform their larger cap peers, and this view in my opinion remains intact. . In the short term, earnings estimates in UK companies are not keeping pace with share price performance, making mid caps look relatively fully valued on a P/E basis compared to recent history. In fact, with the end of quantitative easing in sight, and a more balanced, growing global economy, the environment is significantly improving for the UK mid-cap market. To say mid caps have had their day, is to ignore the many ...