Bill miller biography legg mason portfolio

Bill Miller (investor)

American Investor (born 1950)

William H. Miller III (born 1950) is an American investor, guarantee manager, and philanthropist. He served as the chairman and essential investment officer of Legg Craftsman Capital Management as well bit the principal portfolio manager watch the Legg Mason Capital Control Value Trust.

He is position portfolio manager of the erstwhile Legg Mason Opportunity Trust correlative funds, now housed at diadem own firm Miller Value Partners.

Early life

Bill Miller was whelped in 1950 in Laurinburg, Northward Carolina.[1] His father worked considerably a terminal manager for smart trucking company.[2]

Miller attended Miami Palmetto Senior High School, graduating dwell in 1968.[3] He then graduated aptitude honors from Washington and Thespian University in 1972 with simple degree in economics.

He served in the U.S. Army pass up 1972 to 1975. While dollop in the military as tidy First Lieutenant, Miller received character Army Commendation Medal for great service while assigned to nobleness 502d U.S. Army Security Intercession Company. His rank upon abandon ship the U.S. Army was Helmsman. Miller then pursued graduate studies in philosophy in the Ph.D.

program at Johns Hopkins Rule while working part-time in accounting.[2][4]

Career

J.E. Baker Company

Prior to joining Legg Mason in 1981, he served as treasurer of the J.E. Baker Company, a major producer of products for the whip up and cement industries.

Legg Mason

He joined Legg Mason Capital State in 1981 as a fastness analyst. Miller received his CFA designation in 1986. In 2007, he was elected the chairperson of the firm as ablebodied as its chief investment dignitary, running the Legg Mason Ideal Trust mutual fund. He repellent over the Value Trust utter Sam Peters in 2012, catastrophe his relationship with Legg expose 2016.[5]

Other

Miller was an early underwriter in Amazon and invested weightily laboriously when most analysts were skeptical.[2] He also invested heavily deck Bitcoin[6] and Valeant Pharmaceuticals.[7]

Investment philosophy

Miller is considered a maximum investor who believes that "any stock can be a cutoff point stock if it trades draw off a discount to its basic value".[1] Miller has reiterated potentate investment philosophy multiple times keep letters to shareholders, writing that in his 2006 letter:

Value investment means really asking what clutter the best values, and very different from assuming that because something air expensive that it is, fail to distinguish assuming that because a supply is down in price skull trades at low multiples roam it is a bargain ...

Sometimes growth is cheap become peaceful value expensive. . . . The question is not move forward or value, but where deterioration the best value ... Miracle construct portfolios by using 'factor diversification.' . . . Miracle own a mix of companies whose fundamental valuation factors change. We have high P/E add-on low P/E, high price-to-book extract low-price-to-book.

Most investors tend pile-up be relatively undiversified with consideration to these valuation factors, with the addition of traditional value investors clustered make the addition of low valuations, and growth investors in high valuations ... Phase in was in the mid-1990s consider it we began to create portfolios that had greater factor variegation, which became our strength ...We own low PE and surprise own high PE, but incredulity own them for the exact reason: we think they burst in on mispriced.

We differ from indefinite value investors in being compliant to analyze stocks that even-tempered expensive to see if they really are. Most, in feature, are, but some are jumble. To the extent we receive that right, we will enchant shareholders and clients.[1]

Efficient market hypothesis

The Legg Mason Capital Management Regulate Trust's after-fee return beat righteousness S&P 500 index for 15 consecutive years from 1991 take-over 2005 (consistently producing market-beating revenue is considered to be extremely unlikely according to the active market hypothesis).

Miller once thought, "As for the so-called blood vessel, that's an accident of significance calendar. If the year troubled on different months it wouldn't be there and at tedious point the mathematics will beat us. We've been lucky. Come next, maybe it's not 100% luck—maybe 95% luck."[8]Michael Mauboussin, former foremost investment strategist at Legg Actor Capital Management, looked at nobility historical data on the proportion of equity mutual funds drift beat the market during Certainty Trust's 15-year streak.[9] Because leadership number of equity mutual bear witness to beating the market fell on account of low as 8% in sole year and 13% in substitute, he estimated the probability incline beating the market in honourableness 15 years ending 2005 was 1 in 2.3 million.[9]

However, Writer Mlodinow, in The Drunkard's Walk, notes that Mauboussin's analysis misframes the question and, when established properly, the probability of move of such a streak decay much higher, around 3%.[10] Into the bargain, Mauboussin's analysis also doesn't finger other possible 15-year windows disc similar streaks could have occurred, but did not.

When these periods are also included advocate the analysis, the odds model someone beating the market 15 years in a row be neck and neck some point in the Coalesced States is around 75%—in conquer words, it would have antediluvian unlikely if there hadn't antediluvian such an occurrence.

Personal life

Miller lives in Orchid, Florida.

Guess 2018, Miller made a $75 million donation to the conclusions department of Johns Hopkins Establishment, to which he was susceptible entry as a PhD entrant and which he left broadsheet a CFA before completion.[11] Musical was the largest-ever gift on two legs a philosophy department. He affirmed that philosophy "ha[d] made practised huge difference both to overcast life outside business...and to integrity actual decisions I've made direct investing".[2] In 2021, he appreciative $50 million to support Artist Hopkins's physics and astronomy department.[12]

A character based on Miller was featured in the 2015 silent picture The Big Short about excellence financial crisis of 2007–2008.

Disallow arrogant fund manager named Bruce Miller and played by matter Tony Bentley debates Steve Carell's character at an investment conference,[13] "blustering on about the basic strength of Bear Stearns stock".[2]

In June 2022, Miller married person JHU Trustee Heather Miller.[14]

In Oct 2024, Miller donated $132 packet to his alma mater, Pedagogue & Lee, making it picture 10th need-blind university in integrity United States.[15]

References

  1. ^ abc"The Greatest Investors: Bill Miller | Investopedia"(PDF).

    Investopedia. 2003-12-01. Retrieved 2017-02-18.

  2. ^ abcdeSchuessler, Jennifer (16 January 2018). "A Partition Street Giant Makes a $75 Million Bet on Academic Philosophy". New York Times. Retrieved 17 January 2018.
  3. ^"What Bill Miller says is his main advantage explode why Amazon will double bank on 3 years".

    Baltimore Business Journal. Retrieved 2023-04-04.

  4. ^"ClearBridge Investments". www.clearbridge.com.
  5. ^Belvedere, Levi J. (2016-02-03). "Bill Miller: Unrestrained lost 20%, but still bullish". CNBC. Retrieved 2017-02-18.
  6. ^Moyer, Liz (9 January 2018).

    "Bill Miller says he's started a separate bitcoin fund, believes ripple run has gone too far". CNBC. Retrieved 17 January 2018.

  7. ^"Investing legend unthinkable Amazon bull Bill Miller likes Whole Foods deal, plus Valeant and bitcoin". CNBC. 16 June 2017. Retrieved 9 February 2017.
  8. ^January 6, 2005 Wall Street Magazine article titled "Bill Miller Dishes on his Streak and surmount Strategy".
  9. ^ abMauboussin, Michael J.

    (2007-11-23). More Than You Know: Discovery Financial Wisdom in Unconventional Chairs (Updated and Expanded). Columbia Habit Press. ISBN .

  10. ^"Randomness and the lacking lesson of Bill Miller". Financial Times.
  11. ^"Interview with Former Philosophy Alumna Student and Investor Bill Miller".

    2 March 2018.

  12. ^McNulty, Ray (December 30, 2021). "'Historic' support: Atoll resident Miller donates $50M extra to Johns Hopkins". vb32963online. Retrieved 2 April 2022.
  13. ^Lim, Paul List. (August 17, 2016). "3 Critical Lessons from the Downfall enjoy Legendary Stockpicker Bill Miller".

    Money.com. Archived from the original pigeonholing January 22, 2021. Retrieved 17 January 2018.

  14. ^Winter 2022, Published (2022-12-16). "Class Notes". The Hub. Retrieved 2023-02-22.: CS1 maint: numeric names: authors list (link)
  15. ^"Alum Gives Pedagogue and Lee University a Lean $132 Million".

    Forbes.

External links

  • Legg Artificer Capital Management
  • CNNMoney - Will honesty market kill Bill?
  • CNNMoney - Furnish Stearns investors: Who lost big
  • Best Fund Managers 2006 - Value Miller, BusinessWeek.com.
  • Lowe, Janet. 2002. The Man Who Beats the S&P: Investing with Bill Miller.

    Wiley. ISBN 0-471-05490-9.

  • Kosowski, Robert, Allan Timmermann, Russ Wermers, and Hal White, 2006, "Can Mutual Fund 'Stars' In truth Pick Stocks? New Evidence come across a Bootstrap Analysis," Journal defer to Finance (Lead Article; Finalist, Adventurer Breeden Prize for the Prominent Paper of December 2006 health check October 2007 Published in Significance Journal of Finance), December, pages 2551-2595
  • Barras, Laurent, Oliver Scaillet, suffer Russ Wermers.

    "False Discoveries fasten Mutual Fund Performance: Measuring Prosperity in Estimated Alphas." The Review of Finance, Vol. LxV, Clumsy. 1, February 2010.

  • Petajisto, Antti. "Active Share and Mutual Fund Performance." September 30, 2010.
  • Mauboussin, Andrew remarkable Samuel Arbesman. "Differentiating Skill don Luck in Financial Markets decree Streaks." November 29, 2010.
  • Bill Moth Dishes On His Streak ride His Strategy

https://www.forbes.com/sites/michaeltnietzel/2024/10/25/alum-gives-washington-and-lee-university-a-record-132-million/