No longer Miller time

When it came to investing in America one mutual fund manager was consistently top. From 1991-2005 Bill Miller, the manager of the Legg Mason Value Trust, outperformed the S&P 500 every year. However, after the run came to an end in 2006 things have turned sour and the Wall Street Journal today reported that over one year Miller’s fund is down 58%. This is 20 percentage points more than the fall in the S&P 500.

Miller admits in the article that he “didn’t properly assess the severity of this liquidity crisis”. Holdings in Washington Mutual, Countrywide Financial Corporation and Citigroup, explain why in the past year the fund’s assets have fallen from $16.5 billion (£11.0 billion) to just $4.3 billion.