2006 is the first year since 1991 where the Legg Mason fund does not outperform the S&P 500. For 2007, Miller has stated that he is very bullish and believes the market will have double digit gains. He is so bullish that he was recently quoted in the economist that he is willing to borrow money to buy stocks, as he did in 2002.
from 9/30/06 Top 25 Holdings Sector P/E YTD Return % % Net Assets AES Corporation* 33.37 -4.63 5.41 Tyco International, Ltd.* 15.67 1.55 5.19 Qwest Communications International, Inc.* --- -0.84 4.99 Sprint Nextel Corporation* 30.22 3.97 4.86 UnitedHealth Group, Inc.* 20.83 -0.76 4.55 J.P. Morgan Chase & Co.* 13.58 -0.02 4.55 Google, Inc.* 61.52 5.02 4.14 Sears Holdings Corporation* 19.49 -1.57 3.99 Amazon.com, Inc.* 55.15 -4.97 3.89 Aetna, Inc.* 14.08 -3.82 3.26 Countrywide Financial Corporation* 9.82 0.16 3.07 DirecTV, Inc.* 26.52 -2.17 2.91 Citigroup, Inc.* 13.14 -1.17 2.69 IAC/InterActiveCorp* 40.65 0.65 2.67 Eastman Kodak Company* --- -0.97 2.65 eBay, Inc.* 40.14 -1.23 2.63 Yahoo, Inc.* 35.37 9.40 2.50 American International Group* 17.03 -0.18 2.27 Time Warner, Inc.* 19.62 2.71 2.25 Home Depot, Inc.* 13.48 -1.67 2.24 Health Net, Inc.* 17.34 -3.10 2.22 Pfizer Inc.* 15.21 1.00 1.90 Electronic Arts, Inc.* 91.17 5.00 1.89 Capital One Financial Corporation* 10.41 0.79 1.80 Pulte Homes, Inc.* 6.65 -4.98 1.72
still owns Sprint, stock is down over 5% AH, cutting 5000 jobs. Not a stock to own, nextel losing a lot of Subs.
Can you find a period when he was *not* bullish? I've never heard of a mutual fund manager saying he's bearish.