Bill-“Every decision to buy anything has been wrong”-Miller is a walking reminder of the central trouble with mutual funds.
Even though his $1.3 billion Legg Mason Opportunity Trust has declined 65 percent this year, his people still love him.
To prove it, they just gave him a new fund to help manage. His name recognition means he will still be able to attract assets, even if he is probably the worst money manager on the planet right now.
Legg Mason to Add Miller to All Cap Fund Manager Team
(Bloomberg) — Bill Miller, the Legg Mason Inc. money manager whose two funds have each lost more than half their value this year, will help run a third fund as the firm tries to reverse record outflows.
Miller will be added to the Legg Mason Partners All Cap Fund on Jan. 1, Mary Athridge, a spokeswoman for Baltimore-based Legg Mason, said in an interview today. David Nelson will also be added to the management team, led by Jay Leopold.
Legg Mason is taking steps to stem customer redemptions that took $37 billion from its stock funds in the first nine months of 2008. Miller’s Legg Mason Value Trust has declined 56 percent this year after failed bets on companies including American International Group Inc. and Freddie Mac.
Miller, 58, known for guiding the $4.3 billion Value Trust to a better performance than the Standard & Poor’s 500 Index for a record 15 consecutive years, has trailed the benchmark since 2006. His $1.3 billion Legg Mason Opportunity Trust has declined 65 percent this year, while the S&P 500 has fallen 40 percent.
Filed under: Uncategorized | Tagged: All Cap Fund Manager Team, Bill Miller, Jay Leopold., Legg Mason Opportunity Trust, trouble with mutual funds.
