Mid-cap managers double down after 'surprise' sell-off

Mid-cap managers are adding to their highest-conviction holdings following the harsh sell-off experienced by the FTSE 250, a fall they argue "has neither rhyme nor reason."

The mid-cap index has fallen 5% since the beginning of March, wiping out gains year to date and costing some managers near 10% of their performance. However, they say there is no clear reason - other than profit-taking -why many of last year's winners are now being dumped by investors, with the long-term story in many stocks intact. "It is difficult to spot a pattern: the sell-off has purely been on last year's winners," said Derek Mitchell, manager of the £247m Royal London UK Mid Cap Growth fund. Richard Watts (pictured), manager of the £1.4bn Old Mutual UK Mid Cap fund, added mi...