Mid & Small Cap Service

Seeking capital growth by investing in Mid & Small Cap UK companies


A Managed Service that aims to provide investors with long term capital growth by investing into a portfolio of UK mid and small cap companies.


A directly invested, segregated portfolio service with the flexibility to provide investors with opportunities in both the mid and small cap sector. The service is not constrained by a target yield and so has the ability to consider both restructuring and recovery situations. Each portfolio is individually curated using the expertise accumulated over decades of market experience. Our independent research allows us to uncover the long-term success stories and separate out the short-term fads.


The Mid & Small Cap Service is aimed at anyone seeking capital growth and exposure to both mid and small cap companies.
We would guide clients towards a £40,000 minimum investment and would expect it to make up the ‘higher-risk’ element of a larger and well-diversified portfolio.

The Service

The Mid & Small Cap Service has been designed for investors primarily seeking capital growth. The service invests into companies eligible for inclusion in both the FTSE 250 and the FTSE All-Small Indexes however the majority of the portfolio will be allocated to mid cap.
Given that the service is not constrained by a target yield, the Mid & Small Cap mandate is also able to consider restructuring and recovery situations, seeking out companies that in the recent past have faced a variety of issues, resulting in a significant share price decline and, in many cases, a demotion from the FTSE 250 Index to the FTSE All-Small Index.
History has shown that over the very long term, small cap companies have, in aggregate, outperformed their large cap peers (the so called “smaller firm effect”), a phenomenon which traditional financial theory attributes to investor compensation for assuming more risk. By weighting the average market cap more towards the mid cap sector, the Mid & Small Cap mandate seeks to balance the downside risk inherent in smaller company investing, while necessarily accepting a reduction in potential upside.

Strategic Approach

The main challenge in mid and small cap investing is narrowing what is a broad investment universe down to a manageable size in order to take advantage of market inefficiencies, while avoiding the many pitfalls associated with investing in companies that are subject to a lower level of market scrutiny than their large cap peers.
Indeed, one of the key attractions of smaller company investing is the ability to add value to the investment process through original research. What can make investment in this segment of the market even more difficult for the private investor is the significant impact that institutional order flow can have on share prices.
These two issues are both very much to the advantage of our Small & Mid Cap team who can conduct their own detailed research whilst taking advantage of long-term relationships within the institutional stockbroking community. One of the key aspects of the team’s research process is the ability to regularly meet with the management teams of companies face-to-face. The team adopts a “bottom-up” approach to investing, with the resultant portfolios encompassing a truly diverse range of companies, industries, geographies and themes. The team will avoid companies that exhibit high levels of volatility and will generally avoid having more than 25% in any one sector or theme. A typical portfolio will hold a minimum of 15 stocks.

Our charges

Annual management charge: 1.35% plus VAT.
Nominal dealing charge: £30 per transaction.

Risks to be aware of

Investing in mid and small cap investments carries a higher degree of risk than investing in the shares of large cap companies, such as those in the FTSE 100 Index.
The actual risk of your individual portfolio will depend upon a combination of market and stock-specific risk, which our Portfolio Management Team will hope to mitigate through diversification. Portfolios however will be concentrated in a relatively small number of stocks (typically 15-25).
We would generally recommend that overall, an investment into this service does not represent more than 10% of an otherwise well-diversified portfolio.
As is the very nature of investing, the value of your investments will rise and fall over time. Please do not assume that past performance will repeat itself and you must be comfortable in the knowledge that you may receive less than you originally invested.

Contact us

If you would like to find out more about our Mid & Small Cap Service, please contact your nearest branch or our Head Office on [email protected] or 020 7337 0777.