The SMid View The crazier the world around us gets, the more fundamental we become.

Research evidence excerpt

The SMid View The crazier the world around us gets, the more fundamental we become.

J P M O R G A N Global Markets Strategy

10 July 2026

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The SMid View

The crazier the world around us gets, the more

fundamental we become.

2026 is being a very tough year for active managers with 2/3rds of PMs now Small/Mid-Cap Strategy

ACunderperforming their benchmarks over the last 12 mths both within SMid dedicated Eduardo Lecubarri

funds as well as in Large/All-Cap ones (see our PM Sentiment Meter report published (44-20) 7134-5916

last week). In our view, this is completely understandable as PMs have had to face a eduardo.lecubarri@jpmorgan.com

fundamentally irrational environment. On one end, we have all spent mths being told J.P. Morgan Securities plc

that oil prices would remain high as inventories had been depleted and the reopening Shrey Solanky

of Hormuz (if and when it happened) would not resolve the shortage in short order. (91-22) 6157-3184

shrey.solanky@jpmorgan.com

Well, as it turns out, Hormuz has not even fully reopened yet and Oil is already within J.P. Morgan India Private Limited

a stone’s throw of where it started the yr while the world talks about a potential

Archit Agarwal

oversupply! Not less impressive is the shifts we are seeing in terms of sector (91-22) 6157-3788

preferences with Tech (a growth story immune to Hormuz) being moved to the back archit.x.agarwal@jpmorgan.com

burner in favor of sectors like Cons. Disc. which outperformed within SMid-Caps J.P.