The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage. The opinions expressed are those of the author and do not represent the views of TheStreet or its management.
NEW YORK (
was on top of the investment world just five years ago. Since then his $3.85 billion
Legg Mason Capital Management Value
mutual fund lost nearly 40%, whereas the SPY had a slightly positive return.
Insider Monkey, your source for free
data, doesn't need to run regressions to know Bill Miller damaged his pristine reputation with this disastrous performance.
Despite his poor performance, investors still gave him billions of dollars in hopes he might get his groove back. Bill Miller's top 25 holdings at the end of 2009 returned 16.1% until last Friday. This might seem satisfactory to most investors, but a
low cost index fund
such as SPY returned 22.6% during the same time period.
Bill Miller couldn't beat the market in 2010, but his performance so far in 2011 reminds us of his old glory days.