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

Higher domestic exposure than FTSE 100

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 ...