'Sweet spot' for growth: When do mid caps steal a march on larger competitors?

Schroders' Rosemary Banyard asks if the continued outperformance of UK mid caps over their large-cap peers is due to structural or cyclical factors

The UK mid-cap sector has been a fertile hunting ground for investors in recent years. Not only have companies exhibited strong growth, the sector has been consistently refreshed by a wave of IPOs, which has allowed investors to participate in some of the UK's newest and most dynamic companies. Merger and acquisition activity has also been supportive of valuations. Does this argue for a longer-term overweight position in the sector, though, and should investors be deterred by current valuations? Outperformance UK mid-cap outperformance is not a short-term phenomenon: they have ou...