Bill Miller to launch new fund with Legg Mason

Miller to manage Miller Income Opportunity Trust with son

December 18, 2013|By Jamie Smith Hopkins, The Baltimore Sun

Legg Mason's Bill Miller is launching a new fund — an eponymous one.

The Baltimore money management firm disclosed the impending Miller Income Opportunity Trust in an initial filing with the U.S. Securities and Exchange Commission on Friday, saying that Miller will manage the fund with son Bill Miller IV as assistant portfolio manager.

The elder Miller turned in 15 straight years of market-beating returns, took a dive during the recession and has climbed back since. He will continue to run the Legg Mason Opportunity Trust fund, up about 60 percent so far this year.

Legg Mason declined to comment on the new fund while in the "quiet period" following the announcement. The filing proposes that the fund become effective 75 days after the Dec. 13 filing.

The fund — to be overseen by LMM LLC, owned by Legg Mason and Miller — will have a "flexible" investment style "intended to generate a high level of income from a wide array of sources," according to the SEC filing.

"The investment strategy involves identifying instances where the capital markets have mispriced investment opportunities and exploiting price discrepancies and inefficiencies in the market," the filing said.

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