Bill Miller Fired by State Pension Plan
Massachusetts' $50.6 billion state pension fund fired five money managers on Wednesday, including the Legg Mason (LM) fund overseen by investment guru Bill Miller, due to poor performance.
The fund's board approved the transfer of about $1.4 billion from the firms -- including Legg Mason Capital Management, Ariel Investments, NWQ, Mazama Capital Management and Gardner Lewis -- into State Street Global Advisors, which is run by State Street (STT), according to news reports. State Street will link the assets to the Russell 3000 index portfolio.
Another $400,000 will be transferred to a fund-of-hedge-funds portfolio. The board also approved a $300 million inflation-linked bonds mandate to BlackRock (BLK).
The pension fund report cited "inconsistent performance" and a "high level of tracking error" as reasons for the asset shift. Legg Mason's fund has posted particularly weak results due to its investments in the struggling financial sector.Get your daily dose of Jim Cramer and all the stocks in his head. Sign up for the free Daily Booyah! newsletter by clicking here.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV