Bill Miller's Streak May Survive, but Other S&P Beaters May Not

Bill Miller's index-beating streak should stay alive this year -- barely. A little screening underscores his significant skills and unearths some solid funds, too.

Miller, manager of the (LMVTX Quote)Legg Mason Value Trust among other Legg Mason funds, is widely known as the only fund skipper to beat the S&P 500 in each of the past nine calendar years, though Transamerica's Jeff Van Harte has quietly matched this feat with a portfolio available only through variable annuities. The streak gets a lot of hype at the end of each year, and we're sure to hear quite a bit in the next couple of weeks, but he's not far ahead of the index -- the fund is beating the S&P 500 by a little more than 2% through Thursday's close.

Some are quick to say that the vaunted streak is no big deal. After all, a slew of stock funds, 422 to be exact, boast a higher five-year average annual return than the S&P 500 after last year's boffo returns. While this view is understandable, it's also a bit misguided. It ignores, for instance, the significant value of consistency. ...