Are mid caps facing a period in the wilderness and how can managers protect portfolios?

Higher domestic exposure than FTSE 100

Laura Dew
clock • 3 min read

UK equity managers have warned mid-cap names face a "choppy outlook" for months to come in the face of post-Brexit uncertainty for more domestically-focused companies.

In the immediate aftermath of the referendum result, the FTSE 250 suffered its worst ever trading day on record, falling around 7%. The index is seen as a truer reflection of the domestic 'Brexit effect', with around 50% of revenues coming from the UK compared to 20% for FTSE 100 constituents. The biggest fallers post the Brexit result included housebuilders Crest Nicholson and Galliford Try, down 42% and 31% respectively, Halfords 21% lower and Ladbrokes slumping 15%. As a result, mid-cap funds were among the worst hit by Brexit turbulence. The £1.8bn Old Mutual UK Mid Cap fund fell ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

Premier Miton calls on Treasury to limit cash ISA tax benefit to £5000 and drive focus on UK assets in Spring Forecast
UK

Premier Miton calls on Treasury to limit cash ISA tax benefit to £5000 and drive focus on UK assets in Spring Forecast

Cash ISA reforms

Linus Uhlig
clock 18 March 2025 • 2 min read
Tradu's Brendan Callan: Four ways to revive UK retail investor engagement
UK

Tradu's Brendan Callan: Four ways to revive UK retail investor engagement

'US stocks continue their relentless rally'

Brendan Callan
clock 26 February 2025 • 4 min read
Evelyn Partners drops Ninety One UK Alpha for Fidelity Special Sits
UK

Evelyn Partners drops Ninety One UK Alpha for Fidelity Special Sits

Core Managed Portfolio Service rebalance

Beth Brearley
clock 10 December 2024 • 1 min read
Trustpilot