4 Spectacular Fund-Manager Blowups of 2011
Bill Miller has been a manager on the Legg Mason Value Trust (LMVTX) fund since 1982 and helped lead it to an enviable record. He beat the S&P 500 for 15 consecutive years, from 1991 to 2005. Miller, like Berkowitz, has been a Morningstar fund manager of the decade.
But now it looks as if the market has shifted against him. Over the past five years, the Value Trust has fallen an annual average of 8.3%, and this year it's down 8.3% as well. That's why it now has $3.4 billion in assets, compared with $21 billion at the peak.Miller is currently holding lots of financial-services stocks, which is dragging down performance. Stakes in Wells Fargo (WFC), Citigroup (C) and JPMorgan Chase (JPM) have contributed to that. Computer maker Hewlett-Packard (HPQ), a top 10 holding that is down 37% this year, is another albatross for the good ship Miller. A previous tech blowup for Miller, Sprint Nextel (S), helped sully his reputation.
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