A turning point for UK mid-caps
by Mark Wright, CFA — Portfolio Manager
— Fearful investors heading for the exit have crushed valuations this year by driving down share prices.
So far, the year 2022 has been one that investors in UK mid-capitalisations (mid-caps) would probably prefer to forget. The first six months of this year witnessed the worst relative performance of UK mid-caps vs UK large capitalisations (caps) on a rolling six-month basis since 1986 (as far back as I could find data). By 30th June, they had underperformed UK large caps by a staggering 18%. The performance gap has since widened a little to over 19% on a year-to-date basis. The absolute performance of UK mid-caps is not as stomach churning, but at -15% it is still poor.
- Global equities returned 1.1% last week
- Most World indices saw positive returns
- Brent crude rose 2.3% to $85.57 per barrel
- Gold rose 2.4% to $1797.63 per ounce