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Federated Hermes

2025 Top 500 ranking: 31

The US SMID revival: Why this quiet rotation matters

The US SMID revival- Why this quiet rotation matters

After years of anticipation, the long-awaited rotation into US small and mid-caps (SMID) is finally gaining traction. Charlotte Daughtrey, Investment Director - Equities, explains why the second half of 2025 presents a rare convergence of macroeconomic, policy and market forces - creating a compelling opportunity for investors.

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