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Lagging Large Caps Leads To Rare Miller Losses
It may be rare, but Legg Mason’s Bill Miller has experienced net redemption in his Value Trust Fund, thanks to its heavy large-cap bias.
It may be rare, but Legg Masons Bill Miller has experienced net redemption in his Value Trust Fund, thanks to its heavy large-cap bias. This is only the third time in his tenure with the fund that Miller has registered losses, says Financial Times. Despite the fact that his $23 billion fund has outperformed the S&P500 index for 15 straight years, when compared to the broader market, FT reports, Millers fund fell short. In fact large caps are suffering these days -- they gained only 5.74% in the past five years compared with 50% for small caps. The reasons, according to FT, is that large-cap companies dont attract a lot of bidders or activist investors such as hedge funds, and investors are diversifying a lot more.