Bill Miller, Legg Mason Master Value Investor

By pjain      Published May 16, 2020, 9:53 p.m. in blog Invest   

Part of Masters Series - Masters STR

Bill Miller - Recent Hedge-Fundie

Bill Miller - Legg Mason Era Portfolio and Lessons

Miller Value Partners HF 220m overall higher Aum, 3x leverage - 2019+120%

Bill Miller is a value, focuses on beaten-down securities that trade at a large discount to their intrinsic value, predicts the bull market will continue, though “stocks will not move in a straight line higher.” He declined to comment beyond the letter. - 2020 Q1 FTCH Farfetch NEW PTON Peloton NEW SFIX Stitch Fix NEW Teva Increase MED Increase AMZN - can double by 2023 LTHold> ADP BHC SOLD> PHM RH UAL someAmzn, BHF

  • 2019 120% perf vs HF 9%, SPY 29%. He says it’s because he didn’t stray from his top names ie "we did our favorite thing to do in markets: nothing. No new names and no elimination of holdings from the portfolio.” 3x*30=90% less costs - where did extra 40% perf come from over SPY?

  • AMZN - can double by 2023

  • Bitcoin big holder - spun to separate fund - as balance to gold
  • ? Gold
  • ADT
  • FLXN Flexion Therapeutics
  • Teva
  • RH
  • MU
  • MED medifast

OMF OneMain Holdings

gained 15.2% as they reported 2Q results which beat expectations. The company reported adjusted EPS of $1.62 versus $1.34 expected with 2Q net charge-offs (NYSE:NCO) of 6.2%. The company declared a special dividend of $2/share. The company increased its outlook with net receivables at year-end 2019 expected to grow by 8-10% compared to 5-10% previously and with the NCO rate expected to come in at 6.1-6.3% compared to <6.5% previously. The company continues to benefit from lower rates as the company has been able to refinance and issue new debt at very favorable costs, while also extending the duration of its funding. -- Bill Miller, Nov'19


Rose 18.6% as the company announced an agreement to sell its 57% controlling stake of its Canadian unit to Brookfield Business Partners LP for C$2.4B. The company hopes this will help push forward their merger with Oceanwide after agreeing to another extension of the deadline to November 2019. -- Bill Miller, Nov'19


lost 27.2% during the quarter after reporting mixed 2Q results and lowering guidance. Revenue came in at $104.7M above consensus of $103.8M and Earnings Before Income, Taxes, Depreciation, and Amortization (EBITDA) of $11.7M was below the Street at $12.7M. The company lowered full-year guidance to revenue of $422-432M from $460-470M and adjusted EBITDA of $42-48M below $66-71M. The decrease is the result of lower spending from three large consumer packaged goods (CPG) customers and delays with new products. The company announced the completion of its stock buyback program with $60M in buybacks. Steven Boal is returning as CEO and board member Scott Raskin was named President. -- Bill Miller, Nov'19

  • ALXN

    Alexion Pharmaceuticals fell 25.2% over the quarter after reporting a top-line beat with revenue of $1,203M versus the Street at $1,174M and EPS of $2.64 ahead of consensus of $2.34. The company raised full-year guidance with revenue of $4,750-4,800M from $4,675-4,750m and EPS of $9.65-9.85 from $9.25. Later in the quarter, the US Patent and Trademark Office said it would review three patents on its top-selling Soliris drug following a challenge filed by Amgen. The European Patent Office decided to refrain from granting Alexion two Soliris patents which would have provided patent protection through 2027. The company also announced the acquisition of an exclusive license to develop and commercialize BBIO’s/EIDX’s TTR stabilizer AG10 in Japan for $25M upfront, $25M equity investment along with milestones and royalties. Alexion announced the planned succession of CFO Paul Clancy with Dr. Aradhana Sarin M.D., who is currently Chief Strategy Officer, beginning in the fourth quarter. -- Bill Miller, Nov'19

  • 2018 -34% as markets plunged.

The veteran stock-picker’s Miller Value Partners 1 surged 60% in the fourth quarter alone, according to the letter seen by Bloomberg. The fund, which has about $220 million in assets, .

  • Miller Opportunity Trust, a mutual fund with $1.7 billion in assets, was up about 34% last year and rose about 19% in the fourth quarter​​.
  • 2008 Miller stumbled during the financial crisis, losing 55% in 2008 and triggering redemptions.
  • Miller gained fame beating the S&P 500 for 15 straight years when he ran the Legg Mason Value Trust.


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