Will Bill Miller Rise from the Ashes?

Legg Mason US Equity has dropped like a rock in 2008, adding to woes from previous years. Can Bill Miller recover?

Russel Kinnel 30 July, 2008 | 4:36AM
This article first appeared in Kiplinger's.

Talk about a fall from grace. Legg Mason US Equity and the original US-sold version, Legg Mason Value, managed by the once-revered Bill Miller, has performed so poorly the past 2.5 years that Morningstar now gives the fund 1 star, our lowest rating. This year, the fund has lost an atrocious 28% of its value. In the US, we took the fund off our Analyst Picks list in 2003 when it was still riding high because its high total expense ratio was way too steep even with his record. Still, we've remained positive about Miller and his approach despite the dismal returns since then.

Should it really come as a surprise that Miller, who was on

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Legg Mason Capital Mgmt Val A Inc (A)$229.92 USD1.08
Legg Mason US Equity A2.49 GBP0.86

About Author

Russel Kinnel  is Morningstar's director of fund research. He is also the editor of Morningstar FundInvestor, a monthly newsletter dedicated to helping US investors build winning portfolios.

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