“The concern is that they are getting a bit pricey. But as long as the takeover phenomenon continues . . . it will extend the cycle”

Mid-cap stocks have come into their own in recent months, outperforming both large- and small-cap shares.

‘What’s driving it? The takeovers,’ said Chuck McQuaid, chief investment officer of Columbia Wanger Asset Management. ‘The lights are all green.’

McQuaid, the lead portfolio manager of the Columbia Acorn Fund, said 26 companies within the fund were taken over last year, ‘clearly a record,’ and so far this year, takeovers already total 13, ‘twice the annualized rate.’

‘Private capital is still flush with cash, and banks are still willing to lend’ to finance the deals, he said. ‘As long as that continues, the trend is going to continue to run its course.’ Read more

Original post by Chicago Tribune