This week on Investing, Markets & Money Podcast, we dive deep into the world of UK mid-cap stocks — the often-overlooked sweet spot between large-cap blue chips and small-cap growth plays. Our guest is Jean Roche, fund manager of the Schroders UK Mid-Cap Investment Trust, who brings over a decade of experience managing portfolios focused on the FTSE 250 universe.
Jean explains what defines a mid-cap stock, why definitions vary across fund managers, and how investors can identify companies with real pricing power, growth potential, and resilient cash flows. She introduces her unique investment framework — the “unique and flex stocks” philosophy — and shares how she builds a balanced portfolio of attractively-priced opportunities while managing downside risk.
We also explore the surge in share buybacks across UK companies, why so many FTSE 250 firms are repurchasing shares, and whether that signals a “once-in-a-generation” buying opportunity in UK equities. Jean discusses sectors showing strength, including defence and retail, and names well-known stocks such as Babcock, Dunelm, Currys, Mitie, and Games Workshop as examples of how UK mid-caps can combine stability and growth.
If you’ve been wondering whether UK equities are undervalued or how mid-cap investing compares to large and small-cap strategies, this episode offers deep insight from one of the most experienced managers in the market.
Podcast: Are UK Mid-Cap Stocks Undervalued?
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Content
00:00 What is a Mid Cap stock?02:00 Jean’s investment philosophy regarding Mid Caps05:05 Why so many share buybacks right now?08:13 Why Mid Caps and not Large Caps?11:25 The wider UK economy and equity market15:18 UK sectors and themes to watch18:28 When a company makes it into the FTSE 10022:20 How does Jean protect the downside risk?25:00 Key contributors to the trust’s performance27:17 Looking ahead to UK market opportunites and risks
