Lygo says mid caps no longer look cheap

Derek Lygo, manager of the First State British Mid-cap fund, believes the sector no longer looks cheap against the FTSE 100 after rallying since March this year. In his eyes, there is no easy money to be made from mid caps at present and it will be harder for the sector to outperform now that the valuation gap with the FTSE has narrowed. Lygo, who joined First State in October 2001 from Dresdner, is confident the appetite for mid caps will remain and some further upgrades take place. Since its launch in February 2002, Lygo's fund has struggled performance-wise, being second quartil...