Bob Kaynor, manager of the Schroder US Mid Cap fund, outlines some exciting opportunities in the US mid-cap market, currently trading at historically significant valuation discounts. We discuss how these companies, the “heartbeat of the US economy,” stand poised for potential growth, driven by earnings acceleration and favourable fiscal policies. We also touch on the recent Fed interest rate cuts, their effect on market behaviour, and how mid-cap stocks could benefit.

What’s covered in this episode: 

• Current valuations in US small and mid-caps
• “History rhymes, it does not repeat” 
• The start of the Fed rate-cutting cycle
• How rate cuts impact mid-cap companies
• The catalyst for mid-caps to turnaround
• Why mid-caps are the “heartbeat” of the US economy
• What does a Harris or Trump win mean for mid-caps? 
• The diversity within the fund
• The appeal of insurance and telecoms 

More about the fund:
Run out of New York by Bob Kaynor, Schroder US Mid Cap has a focus on small and medium-sized companies, with a diversified set of return drivers, in order to dampen the risk of the overall portfolio. The investment process is underpinned by in-depth company analysis, which has led to superior stock selection over time.

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.