Why ASX mid-caps deserve a bigger slice of your equity portfolio

LiveWire

Nov 06

Please note, this interview was filmed Tuesday 21 October, 2025. Livewire content has abounded with gleeful stories of small-cap performance over the last couple of months. But there’s a quiet ...

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One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www-web.itiger.com/news/2581703015"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2581703015\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2581703015?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-11-06 04:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2581703015","market":"nz","top_or_hot":-1,"title":"Why ASX mid-caps deserve a bigger slice of your equity portfolio","media":"LiveWire","content":"<div>\n<p>Please note, this interview was filmed Tuesday 21 October, 2025.\nLivewire content has abounded with gleeful stories of small-cap performance over the last couple of months.\n But there’s a quiet ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/why-asx-mid-caps-deserve-a-bigger-slice-of-your-equity-portfolio\">Source Link</a>\n\n</div>\n","source":"livewire_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy ASX mid-caps deserve a bigger slice of your equity portfolio\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-06 04:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/why-asx-mid-caps-deserve-a-bigger-slice-of-your-equity-portfolio><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Please note, this interview was filmed Tuesday 21 October, 2025.\nLivewire content has abounded with gleeful stories of small-cap performance over the last couple of months.\n But there’s a quiet ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/why-asx-mid-caps-deserve-a-bigger-slice-of-your-equity-portfolio\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ALQ.AU","symbol_name":"ALS LTD","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/why-asx-mid-caps-deserve-a-bigger-slice-of-your-equity-portfolio","article_id":"2581703015","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/why-asx-mid-caps-deserve-a-bigger-slice-of-your-equity-portfolio","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2581703015","pubTimestamp":1762372828,"columns":[],"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"Please note, this interview was filmed Tuesday 21 October, 2025.Livewire content has abounded with gleeful stories of small-cap performance over the last couple of months.But there’s a quiet achiever that’s rallied with plenty of opportunities and stronger returns than both the small and large ends of the spectrum.I’m talking about mid-caps. They may be mid by name, but not by nature.I sat down with Jordan Woods of Paradice Investment Management to discuss why this part of the market deserves more attention and what opportunities investors can add to their portfolios right now.“If you were to look at the ASX 300 and break it into three segments — the top 50, the MidCap 50, and the small ordinaries — the mid-caps have actually been the strongest returning part of the market,” Woods says.For investors, that means two key opportunities: “You’re looking for small caps that are compounding earnings and moving up, and you’re monitoring those ex-top 50 names to see if they can turn around or ","collect":0,"end_time":0,"defaultTopTitle":"livewiremarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ALQ.AU":"ALS LTD","BK7503":"科技股","BRG.AU":"BREVILLE GROUP LTD","BK7055":"建筑与工程","BK7119":"家用电器","FDN":"First Trust Dow Jones Internet I","BK7050":"调查和咨询服务","WTC.AU":"WISETECH GLOBAL LTD","BK7016":"应用软件","BK4588":"碎股","BK4550":"红杉资本持仓","SRG.AU":"SRG GLOBAL LTD","BK4585":"ETF&股票定投概念"},"translate_title":"为什么澳大利亚证券交易所中型股值得在您的股票投资组合中占据更大的份额","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ALQ.AU":1,"BRG.AU":1,"FDN":0.72,"SRG.AU":1,"WTC.AU":1},"content_text":"Please note, this interview was filmed Tuesday 21 October, 2025.\nLivewire content has abounded with gleeful stories of small-cap performance over the last couple of months.\n But there’s a quiet achiever that’s rallied with plenty of opportunities and stronger returns than both the small and large ends of the spectrum.\n I’m talking about mid-caps. They may be mid by name, but not by nature.\nI sat down with Jordan Woods of Paradice Investment Management to discuss why this part of the market deserves more attention and what opportunities investors can add to their portfolios right now.\nThe case for mid-caps\nWhile small caps have been stealing headlines, mid-caps have quietly delivered superior returns for decades.\n“If you were to look at the ASX 300 and break it into three segments — the top 50, the MidCap 50, and the small ordinaries — the mid-caps have actually been the strongest returning part of the market,” Woods says.\nParadice analysed the median holding returns for each segment over the last 25 years and found that: “If you held the ASX small ords for exactly three years, the median return was 5.8%. For the ASX 50 it was 8.5%. But for the MidCap 50, the median three-year return was 11.8%,” he explains.\nAnd it’s not just a short-term phenomenon. “If you increase that holding period to five, seven, or ten years, the story stays exactly the same.”\nConcentration versus diversification\nOne factor working in mid-caps’ favour is sector diversity.\n “The top 50 is dominated by financials and materials. Nearly 40% of the top 50 is financials, and if you add in resources, it’s almost 60%,” Woods says. “That’s a really concentrated part of the market.”\nBy contrast, mid-caps offer much broader exposure. “The diversity of sectors is a lot more broad-based,” he adds. “If you look at the five-year total return contribution for the MidCap 50, the largest single stock contributor was WiseTech (ASX: WTC) at around 7%. That breadth is much broader compared to the ASX 50.”\nThis matters for investors hunting for value and resilience. “It’s becoming a big challenge for investors to find value in the top 50, which is why mid-caps are becoming a really attractive part of the market.”\nThe structural edge\nSo what drives this long-term outperformance? “Understandably, earnings drive share prices over the long term, and that’s no different to the MidCap 50,” Woods says. “Over the last 3, 5, 7, and 10 years, mid-caps have shown the strongest EPS growth through all those timeframes.”\nThis structural strength comes from where mid-caps sit in the market ecosystem. “You get the best of both worlds,” he explains. “You’ve got really good small caps migrating up, and on the flip side, you’ve got turnaround stories coming down from the top 50.”\nFor investors, that means two key opportunities: “You’re looking for small caps that are compounding earnings and moving up, and you’re monitoring those ex-top 50 names to see if they can turn around or if they’re in structural decline.”\nValuations and outlook\nAfter a strong run, are mid-caps still attractively priced? Woods thinks so.\n“When you see strong periods of performance in small caps, not only do mid-caps keep up, they normally outperform,” he notes. “From the bottom of COVID to the top of that cycle, mid-caps were up around 130% versus small ordinaries up 105%.”\nEven in the volatile years since, mid-caps have continued to outperform. “People often forget there are strong underlying fundamentals - these companies compound really strong earnings growth, which is what drives that outperformance.”\nLooking ahead, Woods remains constructive: “The forward earnings growth for the MidCap 50 is around 25%. That’s still really healthy, and it’s being driven by a whole bunch of high-quality companies.”\nThe process behind the picks\nParadice’s process is distinctly hands-on. “We are very much bottom-up stock pickers. That’s the bread and butter of what we do,” Woods says.\nThe team’s investable universe spans from the ASX 51st company all the way to the 300th. “We spend a lot of time on the road,” he says. “We probably do three to four international trips a year, plus lots of domestic travel, seeing companies.”\nFrom there, ideas are filtered through rigorous analysis. “We start with the financial model, dig deep into the fundamentals, and look for businesses that can reinvest capital at high returns and compound earnings through the cycle.”\n\n\n\n\n\n\n\n\n\nJordan Woods, portfolio manager at Paradice Investment Management\nStock stories: ALS and SRG Global\nAmong the fund’s standout long-term performers is ALS (ASX: ALQ).\n “It’s one of those businesses where you see strong earnings growth that continues over multiple years,” Woods says. The life sciences division provides steady, high-single-digit revenue growth, while the commodities business benefits from exploration cycles.\n“As money gets raised and put into the ground, those samples end up at ALS labs for testing. The operating leverage in that business can be quite extreme,” he says. “We believe we’re about to see a really strong earnings upgrade cycle for ALS.”\nAnother newer addition is SRG Global (ASX: SRG), which Woods describes as a standout in the contracting space. “They’re not your typical lower-quality contractor,” he says. “A big part of their revenue base is industrial maintenance — long-dated, lower-risk work.”\nHe’s also encouraged by management. “The CEO said to us, ‘I don’t like speaking to investors because I’d much prefer to be out running the business.’ We love hearing things like that,” Woods says. “They’ve done a great job with bolt-on acquisitions that are 25% EPS accretive, and we think there’s more to come.”\nKnowing when to step back\nParadice recently exited Breville Group (ASX: BRG) after reassessing the outlook. “It looks like it’s going to be difficult to offset the impact of tariffs,” Woods says. “We expect high top-line growth but strong margin compression, so we think there are some short-term earnings headwinds we’d prefer to avoid.”\nThat said, the team remains positive on the company’s longer-term potential — a reminder that even quality names can face periods where stepping aside makes sense.\nA new chapter for the strategy\nParadice’s Australian mid-cap strategy which has been running for nearly two decades will soon be available in an active ETF under the ticker name, M1DS.\n “The feedback from investors has been really strong,” he says. “We’re offering it as an active ETF so investors can access it easily, and get exposure to exactly what we’ve been managing for 18 years.”\nThe ETF is set to launch on 5 November, with Woods and the team preparing to ring the bell and bring it to market.\nMore of the same ahead\nLooking toward 2026, Woods expects the trends underpinning mid-caps’ success to continue. “All of those names in our portfolio have strong bottom-up stories with their own structural tailwinds,” he says. “Whether it’s Hub24, REA, or ALS, we think these businesses will continue to compound over the next couple of years.”\n“There’s definitely been more money lost sitting on the sidelines than participating in the market,” Woods says.\n\n\n\n    Mid Sized. Maximum Potential.\n  \n\n    Over the past 10-year period, Mid Caps have outperformed both Large Caps and Small Caps. In our view the Australian Mid Caps represent the sweet spot in the Australian market — established, diversified businesses with real growth potential.\n  \n\n\n      Learn more about the new ETF.\n    \n\n\n\n\n\nNever miss an update\n\n    Enjoy this wire? Hit the ‘like’ button to let us know. \n    Stay up to date with my current content by \n    following me below and you’ll be notified every time I post a wire","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}