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Will Bill Miller Rise from the Ashes?
By admin - Posted on July 17th, 2008
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Talk about a fall from grace. Legg Mason Value (LMVTX), managed by the once-revered Bill Miller, has performed so poorly the past 2.5 years that Morningstar now gives the fund 1 star. This year, the fund has lost an atrocious 35% of its value.
Should it really come as a surprise that Miller, who was once the talk of the investing world because he beat the stock market 15 consecutive calendar years, has hit a rough patch? No. The streak merely masked Miller's bold approach to stock-picking, a strategy that was sure to run out of steam at some point. Not that one would have expected this steep a drop.
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good portfolio
Submitted by james (not verified) on Tue, 07/29/2008 - 09:53.
That is a good portfolio. I would also add Alleghany Corporation (Y) and Loews (L) to portfolio. What do you think ?
James
Yes. I agree it will take a
Submitted by Roger (not verified) on Wed, 07/23/2008 - 11:36.
Yes. I agree it will take a long time to regain Bill Miller's reputation and for me to recover the money lost in Value Trust.
When you torch investors
Submitted by Anonymous (not verified) on Fri, 07/18/2008 - 05:22.
When you torch investors like this, it takes a generation to forget. Miller won't live that long.
Be realistic
Submitted by Anonymous (not verified) on Sat, 07/26/2008 - 20:45.
The world best "hedge" fund in my view is Berkshire Hathaway. No runaway performance fees, just plain old appreciation in the stock and no dividend to pay tax. ( at least for NRA like me !).
Even Berkshire is down 25% from its peak! His student, Mohnish Pabrai, is also having a torrid time in Pabrai Investment funds. In Buffett's very own words, in the short run, the stock market is a voting machine.
The news are just too psychologically jarring - existing home sales down 2.6% in June, bailout plans for Fannie % Freddie etc...
We must understand that bear market like this will weigh down in the coming months. The tech & telco mess took 3 years to sort out. It was not until a good full year after Carter's exit from the Oval Office that the S&L crisis was sorted out and equities rallied.
Ultimately, it is about your risk tolerance. How confidence are you in your appointed managers?
Did you put 5% or 50% with Bill?
A simple approach would be to place 10% each in 10 mutual funds & quasi-mutual funds :
1. Fairholme Fund
2. Dodge & Cox Stock Fund
3. CGM Focused Fund
4. Icahn Enterprises L.P. (IEP)
5 Sears Holdings (SHLD)
6. Schneider Small Cap Value Fund (SCMVX)
7 Berkshire Hathaway
8 Leucadia National
9 Markel Corporation
10 Brookfield Asset Management (BAM)
