No market for old men

Discussion in 'Wall St. News' started by stock777, Apr 3, 2008.

  1. April 3 (Bloomberg) -- Bill Miller's Legg Mason Value Trust posted the biggest first-quarter drop since opening 26 years ago on losses from longtime holdings such as Sprint Nextel Corp. and newer bets including Bear Stearns Cos.

    The $12.2 billion fund fell 20 percent, trailing all but four of 660 rivals that buy stocks of companies with market values of more than $15 billion, according to data from Morningstar Inc. in Chicago. Last year, Miller lost 6.7 percent, including dividends, compared with the average 6.2 percent gain among similar mutual funds.
     
  2. They ought to rename the fund into "Legg Mason Value Trap"
     
  3. Hey he can always hire Vic N.
     
  4. 20% OUCH! That's gonna leave a mark!:eek:
     
  5. DennisR

    DennisR

    I read somewhere they lost big on BSC. Somewhere around a billion. That could account for half their losses, but don't quote me on this
     
  6. Nanook

    Nanook

  7. he's out of touch....the whole mutual fund industry is out of touch. In fairness, I couldn't generate good returns if I had to buy and hold 15 billion dollar market cap domestic equities...horrible style/asset class to be in.

    The days of individual stock picking of domestic equities to generate alpha for the long run are over. Way too efficient a space. Too many players....

    This market has only proven what academics have said for years now-95% of a stocks trailing year return can be explained by it's market cap, style, and sector. Top down analysis.... it's the only way.
     
  8. "Traxis Partners LLC, the New York-based firm co-founded by former Morgan Stanley chief global strategist Barton Biggs, has declined 15 percent since the end of September in the $1.6 billion Traxis Fund, which chases macroeconomic trends by trading stocks, bonds, currencies and commodities. Biggs, who opened Traxis in 2003 with Morgan Stanley colleagues Madhav Dhar and Cyril Moulle-Berte, said last month that the Dow Jones Industrial Average may rally 1,000 points, calling the current 11 percent decline from an Oct. 9 peak ``overdone.'' "

    "Simons's $18 billion Renaissance Institutional Equities Fund declined 12 percent since its value peaked last May, investors with direct knowledge of the situation said. Mandel's Lone Cedar Fund dropped about 10.6 percent from its high in December, according to people familiar with the fund."

    "``It's more serious than the authorities let on,'' said the 77-year-old Soros. While his $17 billion Quantum Endowment Fund hasn't hit its maximum drawdown, returns have ranged from plus 3 percent to negative 3 percent this year. The fund rose 32 percent in 2007."


    I suspect there is an absolute avalanche of redemptions increasingly held back by the "gates" or outright halting of withdrawals in some funds.

    http://www.bloomberg.com/apps/news?pid=20601087&sid=a5R7vjeKPqHA&refer=home
     
  9. Now this one has definitely lost his glasses:

    April 8 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said the drop in U.S. home prices will probably end ``well before'' early next year as the number of houses on the market diminishes, aiding an economic rebound.


    .......or maybe you just get more speech bookings if you tell people what they want to hear.
     
  10. Hedge fund redemptions - according to Sentimentrader - won't have much net effect on equities at this point since the average equity hedge fund has a net short equity exposure. They will have to cover those short positions should they experience net asset outflows:

    [​IMG]
     
    #10     Apr 8, 2008