With the Legg Mason Value Trust falling 5.7% in the second quarter and 10% through the first six months of the year, Bill Miller, the famed portfolio manager of Legg Mason's $18.1 billion flagship fund, has asked investors in his most recent shareholder letter to be patient, MarketWatch reports. By comparison, the S&P 500 declined 1.4% in the second quarter and about 7% for the year.

"We had a dreadful second calendar quarter," said Miller, who, unlike any of his peers, has beaten the S&P 500 for 15 consecutive years. It is the longest winning streak in the mutual fund industry.

"Our results, as you may know, bounce around quarter to quarter and don't correlate terribly closely with those of the major indices, not should they," he told investors. "We are long-term investors and not traders. Our contrarian approach often puts [us] at odds with the prevailing views in the market."

Miller defended his Internet plays, saying Amazon, Yahoo and eBay are trading at a discount and should more than double due to their "intrinsic business value." He lamented his investments in managed-care and home building companies, which have experienced steep sell-offs recently, and admitted he made a mistake by not investing in energy. "This is another area we were clearly wrong about," Miller said.

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