‘Unemployment is low; inflation is low; valuations have compressed 15 to 20 percent this year because earnings are up and stock prices aren’t. I think this is a normal correction in an ongoing bull market. Until something changes at the macro level and with valuations, we’re fully invested.’
By we, Miller is talking about his Baltimore-based firm Miller Value Partners, where he manages about $2 billion with his two sons.
When he was at Legg Mason LM, -0.28% , Miller managed $70 billion in assets. But that was before the financial crisis hit and completely ravaged his fund, which was top-heavy with financial stocks like Citigroup C, +0.21% and... Bear Stearns.
His current fund is performing well, having outperformed the S&P over the past decade by about 3 percentage points annually, according to Morningstar data. Investors are taking notice, with some $377 million flowing into Miller Opportunity Trust LMOPX, -0.39% last year.