Breaking the chains

One of the great advantages of running a dedicated mid-cap fund is that you don't have to follow the herd mentality. All too often, so-called blue-chip fund managers slavishly model themselves on the overall shape of the index. The problem is the structure of the UK market. It is dominated by just a few stocks and a handful of sectors. For example, the largest 15 stocks account for more than half the market's value. Moreover, by sector there is a level of concentration that brings into question any notion of a sensible spread of risk. Oils, banks, telecoms and pharmaceutical stocks acco...