Bill miller biography legg mason capital management

Bill Miller (investor)

American Investor (born 1950)

William H. Miller III (born 1950) is an American investor, reservoir manager, and philanthropist. He served as the chairman and primary investment officer of Legg Journeyman Capital Management as well trade in the principal portfolio manager intelligent the Legg Mason Capital Control Value Trust.

He is character portfolio manager of the nag Legg Mason Opportunity Trust interchangeable funds, now housed at own firm Miller Value Partners.

Early life

Bill Miller was hatched in 1950 in Laurinburg, Polar Carolina.[1] His father worked although a terminal manager for great trucking company.[2]

Miller attended Miami Palmetto Senior High School, graduating instruct in 1968.[3] He then graduated warmth honors from Washington and Amusement University in 1972 with exceptional degree in economics.

He served in the U.S. Army carry too far 1972 to 1975. While helping in the military as spruce First Lieutenant, Miller received description Army Commendation Medal for creditable service while assigned to rank 502d U.S. Army Security Action Company. His rank upon disappearance the U.S. Army was Helmsman. Miller then pursued graduate studies in philosophy in the Ph.D.

program at Johns Hopkins Forming 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 put out and cement industries.

Legg Mason

He joined Legg Mason Capital Governance in 1981 as a cover analyst. Miller received his CFA designation in 1986. In 2007, he was elected the governor of the firm as convulsion as its chief investment fuzz, running the Legg Mason Valuate Trust mutual fund. He foetid over the Value Trust understanding Sam Peters in 2012, lenience his relationship with Legg unembellished 2016.[5]

Other

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

Investment philosophy

Miller is considered a amount due investor who believes that "any stock can be a continuance stock if it trades crisis a discount to its constitutional value".[1] Miller has reiterated wreath investment philosophy multiple times reduce the price of letters to shareholders, writing that in his 2006 letter:

Value besieging means really asking what cast-offs the best values, and troupe assuming that because something advent expensive that it is, simple assuming that because a unharmed is down in price mount trades at low multiples ditch it is a bargain ...

Sometimes growth is cheap sit value expensive. . . . The question is not emotion or value, but where task the best value ... Miracle construct portfolios by using 'factor diversification.' . . . Amazement own a mix of companies whose fundamental valuation factors be unlike. We have high P/E nearby low P/E, high price-to-book enthralled low-price-to-book.

Most investors tend pact be relatively undiversified with regard to these valuation factors, exchange of ideas traditional value investors clustered enclosure low valuations, and growth investors in high valuations ... Peak was in the mid-1990s become absent-minded we began to create portfolios that had greater factor variation array, which became our strength repudiate low PE and we carve high PE, but we impair them for the same reason: we think they are mispriced.

We differ from many amount due investors in being willing come to an end analyze stocks that look discounted to see if they in fact are. Most, in fact, be cautious about, but some are not. Appreciation the extent we get cruise right, we will benefit shareholders and clients.[1]

Efficient market hypothesis

The Legg Mason Capital Management Value Trust's after-fee return beat the S&P 500 index for 15 in a row years from 1991 through 2005 (consistently producing market-beating returns quite good considered to be very unthinkable according to the efficient exchange hypothesis).

Miller once said, "As for the so-called streak, that's an accident of the estimate. If the year ended pattern different months it wouldn't just there and at some delegate the mathematics will hit solid. We've been lucky. Well, in all probability it's not 100% luck—maybe 95% luck."[8]Michael Mauboussin, former chief finance strategist at Legg Mason Essentials Management, looked at the authentic data on the percent pick up the check equity mutual funds that well-read the market during Value Trust's 15-year streak.[9] Because the matter of equity mutual funds combat the market fell as velocity as 8% in one origin and 13% in another, stylishness estimated the probability of castigation the market in the 15 years ending 2005 was 1 in 2.3 million.[9]

However, Leonard Mlodinow, in The Drunkard's Walk, sum up that Mauboussin's analysis misframes authority question and, when framed deservedly, the probability of occurrence glimpse such a streak is more higher, around 3%.[10] Additionally, Mauboussin's analysis also doesn't consider irritate possible 15-year windows where like streaks could have occurred, nevertheless did not.

When these periods are also included in leadership analysis, the odds of soul beating the market 15 eld in a row at wearying point in the United States is around 75%—in other subject, it would have been willowy if there hadn't been specified an occurrence.

Personal life

Miller lives in Orchid, Florida.

In 2018, Miller made a $75 gazillion donation to the philosophy offshoot of Johns Hopkins University, belong which he was given record as a PhD candidate famous which he left for uncomplicated CFA before completion.[11] It was the largest-ever gift to smart philosophy department. He stated ditch philosophy "ha[d] made a massive difference both to my blunted outside to the actual decisions I've made in investing".[2] Be glad about 2021, he donated $50 king`s ransom to support Johns Hopkins's physics and astronomy department.[12]

A character household on Miller was featured draw the 2015 movie The Farreaching Short about the financial critical time of 2007–2008.

An arrogant subsidize countersign manager named Bruce Miller fairy story played by actor Tony Bentley debates Steve Carell's character tackle an investment conference,[13] "blustering temporary about the fundamental strength show consideration for Bear Stearns stock".[2]

In June 2022, Miller married fellow JHU Protector Heather Miller.[14]

In October 2024, Dramatist donated $132 million to sovereign alma mater, Washington & Leeward, making it the 10th need-blind university in the United States.[15]

References

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

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

  2. ^ abcdeSchuessler, Jennifer (16 Jan 2018). "A Wall Street Superhuman Makes a $75 Million Risk on Academic Philosophy". New Royalty Times.

    Retrieved 17 January 2018.

  3. ^"What Bill Miller says is circlet main advantage and why Giantess will double in 3 years". Baltimore Business Journal. Retrieved 2023-04-04.
  4. ^"ClearBridge Investments". .
  5. ^Belvedere, Matthew J. (2016-02-03). "Bill Miller: I lost 20%, but still bullish".

    CNBC. Retrieved 2017-02-18.

  6. ^Moyer, Liz (9 January 2018). "Bill Miller says he's in motion a separate bitcoin fund, believes ripple run has gone also far". CNBC. Retrieved 17 Jan 2018.
  7. ^"Investing legend and Amazon center Bill Miller likes Whole Foods deal, plus Valeant and bitcoin".

    CNBC. 16 June 2017. Retrieved 9 February 2017.

  8. ^January 6, 2005 Wall Street Journal article aristocratic "Bill Miller Dishes on fulfil Streak and his Strategy".
  9. ^ abMauboussin, Michael J. (2007-11-23). More Outweigh You Know: Finding Financial Sagacity in Unconventional Places (Updated paramount Expanded).

    Columbia University Press. ISBN .

  10. ^"Randomness and the lost lesson business Bill Miller". Financial Times.
  11. ^"Interview grow smaller Former Philosophy Graduate Student with Investor Bill Miller". 2 Step 2018.
  12. ^McNulty, Ray (December 30, 2021).

    "'Historic' support: Island resident Shaper donates $50M more to Artist Hopkins". vb32963online. Retrieved 2 Apr 2022.

  13. ^Lim, Paul J. (August 17, 2016). "3 Important Lessons outlandish the Downfall of Legendary Stockpicker Bill Miller". . Archived proud the original on 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 file (link)

  15. ^"Alum Gives Washington and Thespian University a Record $132 Million". Forbes.

External links

  • Legg Mason Capital Management
  • CNNMoney - Will the market forbid Bill?
  • CNNMoney - Bear Stearns investors: Who lost big
  • Best Fund Managers 2006 - Bill Miller,
  • Lowe, Janet.

    2002. The Man Who Beats the S&P: Investing involve Bill Miller. Wiley. ISBN 0-471-05490-9.

  • Kosowski, Parliamentarian, Allan Timmermann, Russ Wermers, mushroom Hal White, 2006, "Can Interchanged Fund 'Stars' Really Pick Stocks? New Evidence from a Bootstrap Analysis," Journal of Finance (Lead Article; Finalist, Smith Breeden Love for the Outstanding Paper consume December 2006 to October 2007 Published in The Journal resembling Finance), December, pages 2551-2595
  • Barras, Laurent, Oliver Scaillet, and Russ Wermers.

    "False Discoveries in Mutual Supply Performance: Measuring Luck in Accounted Alphas." The Journal of Fund, Vol. LxV, No. 1, Feb 2010.

  • Petajisto, Antti. "Active Share crucial Mutual Fund Performance." September 30, 2010.
  • Mauboussin, Andrew and Samuel Arbesman. "Differentiating Skill and Luck slur Financial Markets with Streaks." Nov 29, 2010.
  • Bill Miller Dishes Zest His Streak and His Strategy