FIN 3717 Chapter : Case 3 Bill Miller And Value Trust
Document Summary
Bill miller is the manager of an . 2 million dollar mutual fund that has steadily been exceeding the market performance. His strategy is very research intensive and concentrated on holding shares of mainly value stocks with few other strategies. Trust beat the s&p (standard and poor"s) 500 index for 14 consecutive years from 1991 through 2005. It has earned a cumulative return of more than 830% over those 14 years. The question is whether value trust is actually worth the investment since 2005. The numbers of value trust are beating the market in returns. Analysis experienced an average annual return of 14. 6%. Another part of his strategy is to invest in companies whose shares are selling below what miller believes is their true value. At its peak, value trust"s assets ballooned to more than billion. But then the performance started to go down. At that time, he was making large investments in financial and housing stocks.
