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Power Play: $1 trillion man betting on mid-caps

Richard Madigan, CIO, J.P. Morgan Private Bank
Adam Jeffery | CNBC

European stocks may have outperformed U.S. stocks year-to-date, but you can still make money here.

Richard Madigan, who oversees more than $1 trillion in assets as chief investment officer for J.P. Morgan Private Bank, tells CNBC's "Power Lunch" he is overweight U.S. equities and all that overweight is in mid-cap stocks.

"80 percent of mid-cap sales are in the U.S.. To a certain extent mid cap stocks offer some shelter from the current dollar-strength storm if you believe the U.S. remains in expansion. We do," Madigan said.

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Mega-deals may be grabbing the M&A headlines, but Madigan believes the place to be right now is mid-caps. "Over 90 percent of the activity is in deals of less than $500 million in size. That is also good news for mid-cap," Madigan said.

Mid-cap stocks are up five percent this year.