Bill Miller Needs Amazon to Deliver

Amazon.com’s earnings after the bell are the main event tonight.  At least in Legg Mason’s Baltimore headquarters.

The recent performance of Miller’s Legg Mason Value Trust (LMVTX) mutual fund remains woeful despite the recent ramp in Amazon.com. 

He has no one to blame but himself.  Miller was a bit early on homebuilders, which certainly has not helped his performance.  But the recent swoons in Yahoo!, UnitedHealth Group, Google Inc and Countrywide Financial have crushed him over the last month.  Against his peers, that is.

He is nearly dead last over the last month, and his three and five year numbers continue to ebb away slowly as well.  Everyone leading a charmed life on Wall Street wonders how they will react when the tide turns; Miller is now finding out what he is made of.

A healthy coat of teflon protects Bill from critics and cynics, as it should be, given his long-term performance. But Wall Street is more myopic than ever, and he continues to live off the goodwill he has built up over the years.  Expecting another spike from Amazon might be wishful thinking, but for Miller it could not come at a more opportune time.

Tonight we might find out how much gas the mo-mo’s investors have left in the tank.

Unfortunately, Miller does not own energy stocks, and appears to be running on empty.
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position in securities mentioned

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