Actionable news
All posts from Actionable news
Actionable news in LM: LEGG MASON Inc,

Famed Investor Bill Miller Leaves Legg Mason After 35 Years

  • Miller to buy Legg Mason’s stake in his fund company LMM
  • Move ends Miller’s long relationship with Legg Mason

Bill Miller is severing ties with Legg Mason after more than three decades.

The stock picker, famed for beating the S&P 500 Index for 15 straight years when he ran the Legg Mason Value Trust, will buy Legg Mason’s stake in LMM, an investment adviser that he and the company jointly own, according to a statement released today. LMM oversees $1.8 billion in assets, including the $1.3 billion Legg Mason Opportunity Trust, the Miller Income Opportunity Trust and related strategies.

It will be the first time that Miller, 66, runs a business that is entirely his own, though he has been moving in this direction for several years. While he spends much of his time at his residence in Vero Beach, Florida, he continues to be actively involved in money management, having recently started his first hedge fund, one that will employ computer models designed to predict earthquakes to help forecast potential stock market crashes.

“We often would get a lot of questions on whether Bill was ready to retire,” said Samantha McLemore, who has worked on the Opportunity Trust since 2002, and now serves as co-portfolio manager. “One thing this should make clear is that he is investing more in the business and has all plans and intentions to stick around.”

The terms of the buyout weren’t disclosed. The transaction isn’t material to Legg Mason...