The featured White Paper by MFS present a data-driven case for revisiting midcap equities as a compelling allocation within institutional portfolios.
-
Structural advantage: Midcaps historically delivered a 1–1.5% annualized return premium versus large caps, supported by lower analyst coverage and broader sector diversification.
-
Attractive entry point: Current midcap valuations are near 20-year lows, suggesting potential upside as concentration in large caps peaks.
-
Alpha potential: Elevated return dispersion and under-researched opportunities enhance scope for active outperformance.
Could midcaps be the next driver of equity alpha as markets rebalance away from mega-cap concentration?
To read this article, you need a subscription to Investment Officer. If you don't have a subscription yet, click on 'Subscribe' to see the various subscription options.
