Filed under: Define investing, Citigroup Inc. (C), Countrywide Financial (CFC), Personal finance, S and P 500

If you follow growth and value investing gurus, you’ve probably heard of Legg Mason’s Bill Miller. After 15 years of beating the S&P 500 index, the value investing champ is now in a two-year rut of trailing the index. What happened? All great things come to a change, so with another not-so-good trend under way, Mason is re-tooling some things to get back on track.

While I am a huge fan of growth investing and index funds, from international and emerging markets to REITs to small caps, I also pay attention to value funds and markets. With various industries and sectors, loading too much in one risks the potential for losing timing in another. Case in point: Miller’s Legg Mason Value Trust (NASDAQ: LMVTX) was overweight in telecom and tech, and underweight in the energy sector in the last year or so, and that explains not beating the S&P 500.

How could such a seasoned manager miss the boat here? Like many of you, I’ve missed plenty of boats, and the man is only human. One of Miller’s top 10 holdings is Amazon.com (NASDAQ: AMZN), which has seen a great rally this year, but still is overvalued once you consider the fundamentals of the company’s financials.

Continue reading Legg Mason’s Bill Miller reshapes his portfolio strategy

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This entry was posted on Monday, November 5th, 2007 at 8:20 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.