Bill Miller, former chairman and chief investment officer of Legg Mason Capital Management, on Friday, May 2, 2014 at the Inn and Spa at Loretto in Santa Fe, NM.
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In its heyday, the fund beat the S&P 500 every year from 1991 to 2005.
Mr. Miller made a comeback with Legg Mason Opportunity Trust in 2012 and 2013. That fund has about $92 million in assets. Value Trust lost 55 percent that year.
“The fund has had a significant struggle this year”, said Samantha McLemore, co-portfolio manager for Legg Mason Opportunity Trust.
“While a star manager can create a marketable face for a firm, it can carry risks if that star underperforms” or runs into other troubles, Fox said. He’s not been associated with that fund since 2012. He outperformed 99 percent of his peers during those two years, according to Morningstar Inc.
The Opportunity Trust has been up and down in 2016: The fund rose nearly 10 percent in July but is still down 8.5 percent for the year.
USA asset manager Legg Mason has relocated a high achieving Executive Director from Scotland to Melbourne to drive forward the Australian business.
Legg Mason shares are down 29 percent over the past 12 months, compared with the S&P 500’s 5 percent return.
The deal ends Miller’s 35-year tenure at Legg.
Baltimore-based LMM, which was started in 1999, will continue to oversee both funds.
The transaction isn’t material to Legg Mason, according to Mary Athridge, a spokeswoman for the firm.
Miller is sole manager of Income Opportunity fund. Since the end of 2008, Vanguard Group, the industry’s king of index funds, has pulled in almost $1 trillion in net deposits.
“I am excited about my new role as I believe Legg Mason has an increasingly important role to play for investors, in that we are one of the few multi-affiliate models that has the depth and capability to build and deliver a range of solutions tailored to the Australian investor”, he said.
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Miller (pictured below) has bought out Legg Mason’s stake in his investment firm LMM LLC.
