With the Legg Mason Value Prime Fund up 1.6% through last Friday, versus the S&P 500 up 11.9%, it appears that celebrated fund manager Bill Miller is about to end his 15-year streak of beating the benchmark, the Poughkeepsie Journal reports.
Although Miller maintains he intends to beat the S&P 500, not everyone has as much faith in his acumen. Bill Gross of PIMCO suggests that Miller has simply been lucky. “Anyone can theoretically roll 12 sevens in a row,” Gross said three years ago, when Miller had beaten the benchmark for 12 years in a row. So do Gregory Baer and Gary Gensler, who wrote “The Great Mutual Fund Trap.” In the book, they wrote, “While we are happy for Legg Mason and its manager, Bill Miller, we view the outcome roughly in line with random chance.”