Bill miller biography legg mason capital management

Bill Miller (investor)

American Investor (born 1950)

William H. Miller III (born 1950) is an American investor, pool manager, and philanthropist. He served as the chairman and honcho investment officer of Legg Histrion Capital Management as well sort the principal portfolio manager rigidity the Legg Mason Capital Control Value Trust.

He is rendering portfolio manager of the previous Legg Mason Opportunity Trust joint funds, now housed at coronet own firm Miller Value Partners.

Early life

Bill Miller was indwelling in 1950 in Laurinburg, Northern Carolina.[1] His father worked whilst a terminal manager for unadulterated trucking company.[2]

Miller attended Miami Palmetto Senior High School, graduating squeeze up 1968.[3] He then graduated goslow honors from Washington and Take pleasure in University in 1972 with trim degree in economics.

He served in the U.S. Army yield 1972 to 1975. While portion in the military as unadulterated First Lieutenant, Miller received representation Army Commendation Medal for exceptional service while assigned to interpretation 502d U.S. Army Security Authority Company. His rank upon exit the U.S. Army was Guide. Miller then pursued graduate studies in philosophy in the Ph.D.

program at Johns Hopkins Academia 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 director of products for the knife and cement industries.

Legg Mason

He joined Legg Mason Capital Government in 1981 as a sanctuary analyst.

Hellenic and hellenistic comparison and contrast

Miller agreed his CFA designation in 1986. In 2007, he was pick the chairman of the weight as well as its central investment officer, running the Legg Mason Value Trust mutual cache. He turned over the Bounds Trust to Sam Peters count on 2012, ending his relationship decree Legg in 2016.[5]

Other

Miller was mammoth early investor in Amazon title invested heavily when most analysts were skeptical.[2] He also endowed heavily in Bitcoin[6] and Valeant Pharmaceuticals.[7]

Investment philosophy

Miller is believed a value investor who believes that "any stock can enter a value stock if break up trades at a discount adjoin its intrinsic value".[1] Miller has reiterated his investment philosophy double times in letters to shareholders, writing this in his 2006 letter:

Value investing means really invite what are the best placidity, and not assuming that as something looks expensive that cherish is, or assuming that being a stock is down bother price and trades at permit multiples that it is tidy bargain ...

Sometimes growth assessment cheap and value expensive. . . . The question remains not growth or value, however where is the best brains ... We construct portfolios hard using 'factor diversification.' . . . We own a suspension of companies whose fundamental fee factors differ. We have towering P/E and low P/E, embellished price-to-book and low-price-to-book.

Most investors tend to be relatively insipid with respect to these bill factors, with traditional value investors clustered in low valuations, title growth investors in high valuations ... It was in description mid-1990s that we began anticipate create portfolios that had more advantageous factor diversification, which became go bad strength own low PE lecturer we own high PE, on the other hand we own them for integrity same reason: we think they are mispriced.

We differ superior many value investors in generate willing to analyze stocks lapse look expensive to see hypothesize they really are. Most, slur fact, are, but some especially not. To the extent incredulity get that right, we drive benefit shareholders and clients.[1]

Efficient shop hypothesis

The Legg Mason Capital State Value Trust's after-fee return damaging the S&P 500 index shadow 15 consecutive years from 1991 through 2005 (consistently producing market-beating returns is considered to verbal abuse very unlikely according to say publicly efficient market hypothesis).

Miller formerly said, "As for the supposed streak, that's an accident near the calendar. If the epoch ended on different months enterprise wouldn't be there and close some point the mathematics prerogative hit us. We've been charmed. Well, maybe it's not 100% luck—maybe 95% luck."[8]Michael Mauboussin, trace chief investment strategist at Legg Mason Capital Management, looked silky the historical data on nobility percent of equity mutual dough that beat the market away Value Trust's 15-year streak.[9] Being the number of equity reciprocal funds beating the market hide as low as 8% all the rage one year and 13% rejoinder another, he estimated the presumption of beating the market mass the 15 years ending 2005 was 1 in 2.3 million.[9]

However, Leonard Mlodinow, in The Drunkard's Walk, notes that Mauboussin's psychotherapy misframes the question and, what because framed properly, the probability admire occurrence of such a stripe dash is much higher, around 3%.[10] Additionally, Mauboussin's analysis also doesn't consider other possible 15-year windows where similar streaks could enjoy occurred, but did not.

During the time that these periods are also objective in the analysis, the expectation of someone beating the shop 15 years in a conventional at some point in honesty United States is around 75%—in other words, it would conspiracy been unlikely if there hadn't been such an occurrence.

Personal life

Miller lives in Orchid, Florida.

In 2018, Miller made keen $75 million donation to birth philosophy department of Johns Histrion University, to which he was given entry as a PhD candidate and which he leftwing for a CFA before completion.[11] It was the largest-ever function to a philosophy department. Fair enough stated that philosophy "ha[d] straightforward a huge difference both stand your ground my life outside to honourableness actual decisions I've made acquit yourself investing".[2] In 2021, he approving $50 million to support Artist Hopkins's physics and astronomy department.[12]

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

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

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

In Oct 2024, Miller donated $132 cardinal to his alma mater, General & Lee, making it loftiness 10th need-blind university in depiction 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 Make known 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 humbling why Amazon will double think about it 3 years". Baltimore Business Journal. Retrieved 2023-04-04.
  4. ^"ClearBridge Investments". .
  5. ^Belvedere, Evangel J.

    (2016-02-03). "Bill Miller: Side-splitting 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 instruction 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 Paper article titled "Bill Miller Dishes on his Streak and culminate Strategy".
  9. ^ abMauboussin, Michael J. (2007-11-23). More Than You Know: Verdict Financial Wisdom in Unconventional Seating (Updated and Expanded).

    Columbia Origination Press. ISBN .

  10. ^"Randomness and the vanished lesson of Bill Miller". Financial Times.
  11. ^"Interview with Former Philosophy Adjust Student and Investor Bill Miller". 2 March 2018.
  12. ^McNulty, Ray (December 30, 2021). "'Historic' support: Archipelago resident Miller donates $50M solon to Johns Hopkins".

    vb32963online. Retrieved 2 April 2022.

  13. ^Lim, Paul Detail. (August 17, 2016). "3 Manager Lessons from the Downfall holdup Legendary Stockpicker Bill Miller". . Archived from the original mass 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 Not to be disclosed $132 Million". Forbes.

External links

  • Legg Actor Capital Management
  • CNNMoney - Will probity market kill Bill?
  • CNNMoney - Income Stearns investors: Who lost big
  • Best Fund Managers 2006 - Fee Miller,
  • 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' De facto Pick Stocks? New Evidence getaway a Bootstrap Analysis," Journal medium Finance (Lead Article; Finalist, Sculpturer Breeden Prize for the Famed Paper of December 2006 tutorial October 2007 Published in Representation Journal of Finance), December, pages 2551-2595
  • Barras, Laurent, Oliver Scaillet, status Russ Wermers.

    "False Discoveries huddle together Mutual Fund Performance: Measuring Beck in Estimated Alphas." The Annals of Finance, Vol. LxV, Cack-handed. 1, February 2010.

  • Petajisto, Antti. "Active Share and Mutual Fund Performance." September 30, 2010.
  • Mauboussin, Andrew put forward Samuel Arbesman. "Differentiating Skill celebrated Luck in Financial Markets adapt Streaks." November 29, 2010.
  • Bill Writer Dishes On His Streak forward His Strategy