At KAR, we believe that, mid-cap stocks with strong fundamental characteristics can play an important role in diversifying an investor’s portfolio.
In our whitepaper, our experts outline why they believe mid-cap stocks are often overlooked versus large-cap and small-cap stocks, and why mid-caps have characteristics that can complement large-caps and small-caps. We’ll walk you through the definition of mid-cap stocks, why we believe they present a unique set of opportunities, and how, in our view, an active investment strategy built around high-quality mid-cap companies may be additive to a diversified portfolio over time.
Overlooked Opportunities in Mid-Cap
Mid-cap stocks are sometimes overlooked as they lie in the shadow of large-cap companies that dominate the investment news cycle, while small-cap stocks are seen as a counterweight to large-caps and an opportunity for exposure to growth. However, our research finds that while mid-caps retain qualities of both large-cap and small-cap stocks, it is their differences that make them compelling.
Why We Believe in the Qualities of Mid-Cap Stocks:
- Large opportunity set
- Compelling return patterns versus large-cap and small-cap stocks
Why KAR Invests in Mid-Cap Stocks
For additional information on why we believe investing in mid-cap stocks can be an important tool for investors, read our whitepaper or check out the KAR Mid Cap Core portfolio, a strategy we’ve been managing for more than 20 years.
Contact us today to learn more about our active investment strategies.
