Finding Big Value in Midcaps

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?