Global Mid Cap Service
Partner, Equity Research
WHAT IS IT?
A managed service that aims to achieve long-term capital growth by investing in the shares of medium-sized companies from around the developed world. The portfolio of 30-35 stocks is based on in-house research by the Killik & Co Equity Research team, and seeks to outperform the MSCI World Mid Cap Growth Index in the medium to long term.
WHY KILLIK & CO?
As an independently-owned investment house with a proprietary Equity Research team, we are free to develop investment ideas and strategies internally whilst avoiding any conflicts of interest.
We believe in-depth, proprietary research that focuses on longer-term trends is crucial, and that an actively managed, direct equity approach is best for our clients.
WHO IS IT RIGHT FOR?
The Global Mid Cap Service is aimed at anyone who is able to accept higher risk, in order to potentially achieve the higher returns and diversification benefits of global mid cap investing.
Managed by our Head of Equity Research, Nicolas Ziegelasch, the Global Mid Cap Service invests purely in direct shares, not funds nor ETFs, and is benchmarked against the MSCI World Mid Cap Growth Index, which it aims to outperform in the medium to long term.
The portfolio of 30-35 stocks, which are selected based on in-house research by the Killik & Co Equity Research team, is relatively concentrated, but it is constructed to achieve diversification on a sectoral, regional and style basis.
Our Investment Process
The Global Mid Cap portfolio is assembled through a rigorous investment process, carried out by Killik & Co’s in-house Equity Research team.
Starting with an addressable universe of c.5,000 stocks, prospective holdings must first meet one of Killik’s long-term investment themes, which are based on the Killik Strategy Committee’s assessment of secular economic, political, and social changes. These include technological disruption – from the growth of the data economy, to digital transformation, and consumer disruption – and demographical changes, such as in healthcare and among emerging market consumers, as well as efforts to protect the environment through sustainable infrastructure and the energy transition.
The Research team identifies stocks that meet these themes through quant screening, conferences and third-party research, ultimately whittling the broader mid cap universe down to a more manageable list of around 150 investable opportunities.
Typically, only half of this list – those stocks that are deemed best able to exploit thematic growth – are subject to more detailed, fundamental research. This analysis uncovers some 50 companies, for which detailed business risk scores and internal rates of return are calculated.
These risk/return scores are integral to the final stage of the investment process – portfolio construction – in which 30-35 of the most attractive securities are selected, having regard also to diversification by sector, region, and style.