Legg Mason’s Peters bets on Apple
BOSTON, March 12 (Reuters) Sam Peters, the money manager hired to breathe new life into Bill Miller famed $2.5 billion Legg Mason Inc fund, thinks the time is right for a stock picking renaissance.
Peters, 42, takes over from Miller, 62, in April, ending an era at the Legg Mason Capital Management Value Trust fund that made Miller one of Canada Goose sale America best known active portfolio managers.
Canada Goose sale Though Miller will stick around in other roles at Legg Mason, his uk canada goose departure from the fund led to much discussion of the declining Canada Goose online importance of active managers in an age of passive investing. Burned by volatile markets, investors have steadily moved money into cheaper products like exchange traded funds in recent years. Canada Goose sale
buy canada goose jacket cheap Less noticed was that that Miller will leave Value Trust in the hands of a stock picker with similar ambitions. buy canada goose jacket cheap
Canada Goose online Peters has been Miller co manager since 2010, and preaches the same approach to investing through a combination of fundamental analysis, big picture perspective, and a focus uk canada goose outlet on improving the processes that managers and researchers use to pick company shares. Canada Goose online
In recent interviews with Reuters, Peters said he plans to keep the funds philosophy essentially unchanged.
Canada Goose Outlet Peters challenge will be convincing skeptics that active management can succeed again. Canada Goose Outlet
He points to a trend that gives him optimism: an ongoing decline Canada Goose Online since the fall in the overall correlation of stock prices in canada goose uk black friday major canada goose coats indexes a measure of how securities move in relation to each other as investors re embrace risk. Peters and Miller have blamed high correlations for their funds troubles in beating indexes in cheap canada goose uk recent years. In canada goose clearance theory, the decline in correlation should make it easier for stock pickers to distinguish themselves, by picking winning stocks.
canada goose store correlations come canada goose down, fundamentals and valuation are mattering more, Peters said. canada goose store
canada goose coats on sale Technically, correlation has been falling since September, including a canada goose uk shop record drop in January among stocks in the Russell 1000 index, according to a recent report by Nomura analyst Joseph Mezrich. canada goose coats on sale
cheap Canada Goose Other big name active fund managers say correlation has made the canada goose factory sale their job harder which in theory should create more opportunity as the correlation among stocks declines. cheap Canada Goose
canada goose were high, which made stock picking very difficult, wrote William Danoff, manager of Fidelity Investments $81 billion Contrafund, in a 2011 year end report. canada goose
FALLING BEHIND Contrafund trailed the S 500 by 2.25 percentage points last year. Yet Danoff still beat 70 percent of peers, Morningstar data show, the fourth time in five years he has done better than average.
canadian goose jacket Value Trust can make the same boast. Miller famously beat the S 500 for 15 years in a row through 2005, but the fund record fell apart buy canada goose jacket in recent years and it beat just 24 percent of peers in 2011. Investor withdrawals brought the fund far down from its peak assets around $21 billion in 2007. canadian goose jacket
Canada Goose Parka Though the fund performance has improved lately, outflows have cheap Canada Goose continued, according to Thomson canada goose jackets outlet Reuters Lipper unit. Canada Goose Parka
Canada Goose Jackets The outflows show Peters challenge will be convincing skeptics that he can succeed as an active manager after Miller recent woes. could be wondering, is this more of the same? said Bridget Hughes, who follows the fund for Morningstar Inc. Canada Goose Jackets
canada goose black friday sale still a little bit of skepticism of Peters ability to turn things around, she added. rightly so. canada goose black friday sale
canada goose clearance sale TECH, FINANCE STOCKS Miller and Peters first encountered each other in the early 1990s when Peters watched Miller give a talk at the Santa Fe Institute in New Mexico. Peters had grown up Canada Goose Outlet in Santa Fe, not far by Western standards from the family ranch in New Mexico Lea County that Peters great great grandfather bought in 1897. canada goose clearance sale
canada goose deals Peters joined Legg Mason in 2005. Since https://www.thebeatlestimeline.com becoming canadian goose jacket co manager of Value Trust Peters has pressed for the addition of technology and financial stocks that he thought to be cheap. At Miller direction, Peters also raised the average market capitalization of companies the fund owns to over $100 billion from $60 billion. canada goose deals
canada goose clearance One of the larger companies is Philip Morris International Inc, which Value Trust bought last July around $70 a share. It has since risen above buy canada goose jacket cheap $84. A more recent addition was insurer Metlife Inc, whose shares Peters said are undervalued because many canada goose clearance sale investors lump it in with big banks that face more problems. canada goose coats on sale The fund began buying Metlife shares in August of 2010 when they were around $40 apiece and heading down to bottom out below $30 last fall. The stock has since come Canada Goose Parka back and closed at $38.42 on Friday. canada goose clearance
buy canada goose jacket Value Trust top holding currently is Apple, accounting for roughly five percent of the portfolio. Like other managers, Peters said he is impressed by Apple tight hold on its customer base through its canada goose store software and retail stores. buy canada goose jacket
Among stocks Peters pushed to sell Canada Goose Jackets were those he called traps that looked cheap but fell further. These canada goose uk outlet included Research In Motion Ltd and Hewlett Packard Co.
canada goose coats Peters said in canada goose black friday sale the fall he and Miller sold some shares in Amazon as its shares rose. For that stock and others, it starts to get a little ahead of Canada Goose Coats On Sale itself, I trim it, Peters said canada goose coats.