Legg Mason has named Sam Peters, 40, co-manager of Bill Miller’s $4.2 billion Value Trust fund, a move widely seen as selecting Peters to be the eventual replacement for Miller as chairman and CEO of the firm.

Peters is well familiar to working alongside the 60-year-old Miller, best known for his 15-year winning streak of outperforming the S&P 500 on the Value Trust fund. Peters joined Legg Mason in 2005 as co-manager with Miller on the $1.2 billion Legg Mason Special Investment Trust fund, which they both still run.

Legg Mason heralded Peters’ arrival at that time, underscoring his previous six years at Fidelity Management & Research, where he was team leader of the healthcare sector and ran the Fidelity Select Health Care and the Fidelity Select Medical Equipment funds. Previously, he ran the Fidelity Select Banking Fund.

Prior to joining Fidelity in 1999, Peters operated Samuel M. Peters Investment Advisors. Between 1992 and 1995, he was a financial analyst at Eppler, Guerin & Turner. Peters has a B.A. in economics from the College of William & Mary and an MBA from the University of Chicago School of Business.

Ever since Miller’s 15-year winning streak on Value Trust ended in 2005, his performance has come under scrutiny. In 2009, the fund outperformed 92% of its peers, but in 2010, it trailed 97% of its peers.