Bill Miller, who beat the S&P 500 for a record 15 straight years before his portfolio was decimated in the financial crisis, has returned with a vengeance, with his fund in the top 1% of those in its class over the past three years and the top 7% over the past five years. And now Miller is loading up on stocks from two sectors that pounded him in the crisis.
Miller tells The Wall Street Journal that he is looking to take advantage of “blindingly obvious” trends, and thus has one-third of his fund in financial firms, with another 14% tied to the housing market.
Miller thinks the overall economy is improving, financing is relatively cheap and there is demand for housing, the Journal reports. While the likes of Blackrock Chairman and Chief Executive Laurence Fink and DoubleLine Capital LP Chief Executive and Chief Investment Officer Jeffrey Gundlach have offered opposing views on housing, Miller says “They’re just wrong.”
The article also offers a look at what Miller changed — and didn’t change — about his strategy after the financial crisis.
Validea’s small-cap growth Motley Fool-inspired portfolio is up 15.7% annualized since its mid-2003 inception vs. 6.3% for the S&P 500. Check out its holdings here.