Lagging Large Caps Leads To Rare Miller Losses

It may be rare, butLegg Mason’sBill Millerhas experienced net redemption in hisValue Trust Fund, thanks to its heavy large-cap bias. This is only the third time in his tenure with the fund that Miller has registered losses, says金融时报》. Despite the fact that his $23 billion fund has outperformed the S&P500 index for 15 straight years, when compared to the broader market,FTreports, Miller’s fund fell short. In fact large caps are suffering these days -- they gained only 5.74% in the past five years compared with 50% for small caps. The reasons, according toFT, is that large-cap companies don’t attract a lot of bidders or activist investors such as hedge funds, and investors are diversifying a lot more.