Goldilocks stocks?

Mid-sized companies are mature enough to have successfully overcome the growing pains that upend many small- and micro-cap equities. But as established players with proven track records, they also benefit from better access to capital markets. The ability to redeploy lower cost capital often allows mid-caps to move into new markets, expand product lines and otherwise execute their strategies.

At the same time, these mid-sized businesses do not typically suffer from the growth challenges that plague many of the largest, most recognizable global brands. Mid-caps do not necessarily need to deliver results through financial engineering, cost cutting, or risky acquisitive strategies as many of the largest companies may do. To the contrary, mid-caps are just hitting their stride.

In our view, this combination of stability, attractive growth potential, and relatively strong liquidity makes mid-sized companies compelling.

Syed Zamil – Mellon Capital, BNY Mellon company

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