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Q&A With Bill Miller, Manager, Legg Mason Opportunity Trust Fund: Video Presentation
It's extraordinary that this fund lost 78% from mid 2007 to spring 2009. Can you believe?
It seems to have become a boom-bust fund, with a very high expense ratio. Huge draw-down and downside deviations...more than 30% Ulcer Index...nominally twice that of say Fairholme Fund FAIRX, which started same time.
I loved the interview, but I think I'm coming to like Mr. Miller more for his views and articulation of them than his actual investing execution.
For example, when Consuelo asked him about mitigating downside (for his two bad periods), he said he just missed the signals "unlike John Paulson" in 2007 so had no hedge in place. In 2011, he explained that his judgement was correct, but his timing was a bit off.
Here's Morningstar performance comparison against SP500 and FAIRX:
Yeah, they have both beaten the market, but good grief...LMOPX is not for me.
That said, I sure hope Mr. Miller is right about housing industry, financials, and continuation of the equity run. He has interesting take on airlines. I also appreciated his perspective on "Dr Jekyll and Mr Hyde" Apple.
Comments
It seems to have become a boom-bust fund, with a very high expense ratio. Huge draw-down and downside deviations...more than 30% Ulcer Index...nominally twice that of say Fairholme Fund FAIRX, which started same time.
I loved the interview, but I think I'm coming to like Mr. Miller more for his views and articulation of them than his actual investing execution.
For example, when Consuelo asked him about mitigating downside (for his two bad periods), he said he just missed the signals "unlike John Paulson" in 2007 so had no hedge in place. In 2011, he explained that his judgement was correct, but his timing was a bit off.
Here's Morningstar performance comparison against SP500 and FAIRX:
Yeah, they have both beaten the market, but good grief...LMOPX is not for me.
That said, I sure hope Mr. Miller is right about housing industry, financials, and continuation of the equity run. He has interesting take on airlines. I also appreciated his perspective on "Dr Jekyll and Mr Hyde" Apple.