Legg Mason's Gay expects US large caps to lead way in developed world equities growth

Legg Mason's Mary Chris Gay believes US large caps will be the best performers this year after being undervalued by sceptical markets.

Gay, who manages almost $10bn for Legg Mason Capital Management’s Value strategy alongside renowned industry veteran Bill Miller, says 2010 will see a continuation of rising corporate profits, with about 70% of companies in the fourth quarter beating expectations. The manager believes continued scepticism in the market is making investors hesitant to put their money to work, which in turn is creating exceptional opportunities for large cap US stocks. “We continue to believe in the longer-term secular story that higher growth will be found in the developed world compared to the develop...