“Our portfolio is positioned around companies that focus on stability and growth,” he says. Green (pictured) also recently increased the portfolio’s cash weighting by reducing the number of total holdings in the portfolio from 74 to 60 because of high valuations in the mid-cap sector. After a recent index correction, Green adds that he is now looking at opportunities to reinvest the cash in areas with a high degree of earnings visibility, such as public sector outsourcing, community pubs and software companies. The group’s Global Platform, a bottom-up investment approach aimed at organising global analysts along sector lines, has also recently helped to add value to the fund, says Green. As a result, the group recently added International Power to its portfolio and was able to confirm valuation concerns on stocks such as Brambles, he adds. The largest holdings in the portfolio currently include Tullow Oil and construction firm Carillion. Andrew Neville, co-manager on the fund, says he expects venture capital firms to drive the next wave of corporate activity in the mid-cap sector. He adds that the sector will also experience more share buybacks going forward.