Why we added to mid caps

ON EUROPE

The weak macroeconomic outlook in Europe might suggest an absence of growth opportunities in its equity markets.

However, for the investor prepared to look further down the market capitalisation range, a number of interesting growth opportunities do emerge. There are several reasons why small and mid cap companies offer investors the opportunity to make superior returns over an investment cycle. Firstly, this part of the market offers a greater number of growth opportunities because it captures many businesses that are in the structural growth phase of their lifecycle.  We look for companies that offer a niche product or service and are able to grow in spite of broader macroeconomic trends.  The...