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 ( Insider Monkey) - Bill Miller was on top of the investment world just five years ago. Since then his $3.85 billion Legg Mason Capital Management Value ( LMVTX) mutual fund lost nearly 40%, whereas the SPY had a slightly positive return.

Insider Monkey, your source for free insider trading 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.

Bill Miller's top 25 stock holdings at the end of December returned 10.2% in 2011, vs. SPY's 7%. Here is how each stock performed:

Bill Miller is invested in some hedge fund favorites such as Citigroup ( C), Microsoft ( MSFT), JP Morgan ( JPM), and Hewlett-Packard ( HPQ).

William Ackman's Pershing Square, David Tepper's Appaloosa, Daniel Loeb's Third Point, Andreas Halvorsen's Viking Global, Richard Perry's Perry Capital, Joseph DiMenna's Zweig-DiMenna, Leon Cooperman's Omega Advisors, and John Paulson's Paulson & Co. are among the hedge funds with large Citigroup investments. Lee Ainslie's Maverick Capital, and Jim Simons' Renaissance have HPQ in their portfolios. David Einhorn's Greenlight, Tom Steyer's Farallon, Ray Dalio's Bridgewater Associates, Whitney Tilson's T2 Partners, and Barry Rosenstein's Jana Partners have large Microsoft holdings.

This article was originally published on Insider Monkey.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.