Bill Miller and Value Trust Case Analysis Case Facts: 1 By middle 2005, Leg Mason Value Trust managed by Bill had outperformed S&P 500 index for 14 years in a row. This was longest successful run by any fund manager. The average return on the fund was 14.6% which surpassed the S&P by 3.67% per year. The value trust only had 36 holdings, 10 of which accounted for 50% of the fund’s assets. No manager had matched Miller’s consistent index beating record. Miller’s results were in contradiction
Words: 1545 - Pages: 7
Bill Miller and Value Trust Background Information Bill Miller is one of the most renowned professional fund managers. This can be proven by the outperformance of the Value Trust, which is managed by him, compared to its benchmark index, the Standard & Poor’s 500 Index (S&P 500), for an astonishing 14 years in a row; and this marked the longest streak of success for any manager in the mutual-fund industry. By the middle of 2005, Value Trust is worth $11.2-billion. Bill Miller’s approach
Words: 1805 - Pages: 8
Group Case 1: “Bill Miller and Value Trust” 1. How well has Value Trust performed as of the date of the case? By almost any measure, Bill Miller’s Value Trust had been a remarkable success over the past 15 years. Over this time, the Value Trust had an average return of 14.6%, beating the S&P 500 by 3.67%. Miller took the long approach to investing, rarely beating out the whole market of fund managers in any particular year, but consistently outperforming them over the last 15 years. In 2005
Words: 942 - Pages: 4
equates to higher brokerage transaction fees, which reduce fund returns. Also, the more portfolio turnover in a fund, the more likely it will generate short-term capital gains, which are taxable at an investor's ordinary income rate. Fundamental Analysis – A method of valuing securities such as stocks and bonds that attempts to discover their true value (intrinsic value) by examining related economic and financial factors. Debt Load - The amount of debt or leverage that a
Words: 2758 - Pages: 12
Billy Miller, who manages the Value Trust Fund, consistently leads his company to beat the mutual fund market for 14 years. This remarkable outcome is viewed as impossible mission by those economists and financial analysts. Is this a pure luck or Bill Miller has some unique strategies to run the company? Miller said: “Maybe it’s not 100% luck. Maybe 95% luck.” If it is just lucky to achieve the result in today, should we invest our money into this fund? Or we should do a detailed analysis before
Words: 878 - Pages: 4
bru6171X_case02_023-038.qxd 11/24/12 2:24 PM Page 23 CASE 2 Bill Miller and Value Trust Bill Miller’s success is so far off the charts that you have to ask whether it is superhuman. Quite simply, fund managers are not supposed to be this good. Is it mortal genius, or is it celestial luck?1 By the middle of 2005, Value Trust, an $11.2-billion mutual fund2 managed by William H. (Bill) Miller III, had outperformed its benchmark index, the Standard & Poor’s 500 Index (S&P 500)
Words: 10398 - Pages: 42
Bill Value Trust is a mutual fund that has performed well against various indexes in the years leading up to 2005. Value Trust takes S&P 500 as its benchmark index, which it has outperformed for the last 14 years. Prior to 2005, Value Trust had an average annual total return of 14.6%, which was 3.67% higher than S&P 500’s average annual returns. From exhibits 1 and 5 we can see that the return was much higher for Value Trust (15.04%) compared to the S&P 500 (9.48%) over a ten year period. The
Words: 1587 - Pages: 7
Case 1: Warren Buffet a) Buffett portrays intrinsic value as “The only logical way to evaluate the relative attractiveness of investments and businesses.” (Bruner et al, 2009 p.7) It has accorded such importance because it can be used to estimate the value of the businesses ongoing operations and not the companies stock. Through the calculation of the discounted cash flows, and moreover the net present value of the forecasted performance, we can therefore figure out whether the investment holds
Words: 1119 - Pages: 5
QUT | Case Study 4: Market Efficiency | Bill Miller and Value Trust | | Name: Huey Ngu Student ID: 08324093Tutor Name: David FairDate: 1 November 2013 | Words: 1097 | Contents Introduction 2 Past and current performance of Value Trust 2 Investment strategy of Bill Miller 3 Efficient Market Hypothesis 3 Bill Miller’s letter to shareholders 4 Changes in Chief Investment Officer (CIO) 4 Recommendation and Conclusion 4 Reference 6 Appendices 8 Appendix A: Data of LMVTX
Words: 2114 - Pages: 9
Miller My two favorite short stories are “The Lottery and “Young Goodman Brown”. Making a decision which is better will be a tough choice. Although both stories are similar in its theme, it is transported differently in each story. The stories display different character analysis and word choice. I. My favorite pastime is reading short stories. a. Two stories I can read repeatedly. i. “The Lottery” by Shirley Jackson. ii. “Young Goodman Brown” by Nathaniel Hawthorne. b. The
Words: 1307 - Pages: 6
