This page is about:

HSBC has expanded its coverage of UK small and medium-sized companies to 156 stocks.

In early 2019, the Global Research MidCaps team, led by Matthew Lloyd, published Volume I of the UK MidCaps report, covering 142 UK Small and MidCap stocks as part of a strategy of increased focus on this important market segment. With the launch of Volume II, HSBC has added 14 new companies, bringing our coverage to 77 per cent of the FTSE 350 by market capitalisation (excluding investment trusts and HSBC).

HSBC’s expanded coverage is driven by the continued strong performance of the FTSE 250 which has over the last 20 years delivered total returns compounding in excess of 10 per cent per annum, which compares to 4.9 per cent for the FTSE100. MidCaps have also outperformed major global indices over this period. MidCaps’ outperformance has continued throughout 2019, with the 250-share index’s posting a 13.5 per cent gain YTD.

Rather than sectors, the team focuses on investment themes such as sustainable growth, compounders, assets or risks misunderstood, and special situations encompassing management change and deleveraging.

In Volume II, HSBC’s MidCap Research team addresses the impact of Brexit uncertainty, how effective Long-Term Incentive Plans (LTIPS) are, and how companies are being affected by the introduction of IFRS 16. HSBC’s Global Research MidCap coverage includes companies in the aquaculture industry, leisure travel, consumer software, corporate branding, soft drinks, outsourcing, safety devices, video games and much more. Our aim is to provide high quality, bottom-up research that focuses on companies’ business models first, and the investment cases they represent.

Would you like to find out more? Click here to read the full report (you must be a subscriber to HSBC Global Research).

This page is about:

Disclosure and disclaimer

More, collapsed
Join the conversation?

Join our Linkedin group to get an unparalleled view of macro and microeconomic events and trends from a bank that is a leader in both developed and emerging markets.