Bill Miller

Bill Miller studied economics at Washington and Lee University and received a PhD in philosophy before entering finance. He joined Legg Mason in 1981 and took over as sole manager of the Legg Mason Value Trust in 1990. Over the next 15 years (1991-2005) Miller beat the S&P 500 every single year — a streak unmatched in the history of actively managed equity mutual funds. His success was built on a contrarian value approach with an unusual willingness to invest in technology companies (he was an early and persistent investor in Amazon at low prices) alongside traditional value holdings. The streak generated enormous investor interest and made Miller one of the most famous fund managers of his generation. In 2007-2008 the streak ended catastrophically: Miller made large concentrated bets on financial sector stocks including Bear Stearns, Wachovia, and Freddie Mac, all of which collapsed. The Legg Mason Value Trust lost approximately 55% in 2008 — one of the worst single-year performances of any large equity fund. He subsequently spun off his own firm, Miller Value Partners, and rebuilt a track record through bold contrarian bets including large positions in Bitcoin and Amazon when they were deeply unpopular. His career illustrates both the heights achievable through contrarian investing and its inherent risks.