Hot Fund Activity, Stock Holdings, February 20th

Bill Miller was on top of the investment world just 5 years ago. Since then his $3.85 Billion Legg Mason Capital Management Value LMVTX mutual fund lost nearly 40%, whereas the SPY (NYSE:SPY) had a slightly positive return. Insider Monkey, your source for free insider trading data, doesn’t need to run regressions to know Bill Miller damaged his pristine reputation with this disastrous performance.

Despite his poor performance, investors still gave him billions of dollars in hopes he might get his groove back. Bill Miller’s top 25 holdings at the end of 2009 returned 16.1% until last Friday. This might seem satisfactory to most investors, but a low cost index fund such as SPY returned 22.6% during the same time period.

Bill Miller couldn’t beat the market in 2010, but his performance so far in 2011 reminds us of his old glory days. Bill Miller’s top 25 stock holdings at the end of December returned 10.2% in 2011, vs. SPY’s 7%. Here is how each stock performed:

Company Ticker Return Value (Million)
AES CORP (NYSE:AES) 5.7% 577
TEXAS INSTRS INC (NYSE:TXN) 11.9% 403
CISCO SYS INC (NASDAQ:CSCO) -6.8% 363
WELLS FARGO & CO NEW (NYSE:WFC) 5.5% 361
QUALCOMM INC (NASDAQ:QCOM) 19.6% 354
MICROSOFT CORP (NASDAQ:MSFT) -2.5% 332
E M C CORP MASS (NYSE:EMC) 18.7% 323
AMERICAN EXPRESS CO (NYSE:AXP) 6.5% 288
INTERNATIONAL BUSINESS MACHS (NYSE:IBM) 12.8% 283
AMAZON COM INC (NASDAQ:AMZN) 3.6% 269
EBAY INC (NASDAQ:EBAY) 24.1% 259
GENERAL ELECTRIC CO (NYSE:GE) 17.2% 259
CITIGROUP INC (NYSE:C) 3.8% 252
TIME WARNER INC (NYSE:TWX) 18.7% 247
JPMORGAN CHASE & CO (NYSE:JPM) 13.3% 245
UNITED CONTL HLDGS INC (NYSE:UAL) 13.0% 238
MEDTRONIC INC (NYSE:MDT) 11.9% 238
HEWLETT PACKARD CO (NYSE:HPQ) 15.6% 237
CONOCOPHILLIPS (NYSE:COP) 13.5% 231
AFLAC INC (NYSE:AFL) 5.3% 229
PEPSICO INC (NYSE:PEP) -2.9% 226
NYSE EURONEXT (NYSE:NYX) 26.1% 224
BANK OF AMERICA CORPORATION (NYSE:BAC) 10.6% 215
GOLDMAN SACHS GROUP INC (NYSE:GS) -0.1% 207
CAPITAL ONE FINL CORP (NYSE:COF) 23.9% 200

Bill Miller is invested in some hedge fund favorites such as Citigroup (NYSE:C), Microsoft (NASDAQ:MSFT), JP Morgan (NYSE:JPM), and Hewlett-Packard (NYSE:HPQ). William Ackman’s Pershing Square,  David Tepper’s Appaloosa, Daniel Loeb’s Third Point, Andreas Halvorsen’s Viking Global, Richard Perry’s Perry Capital, Joseph DiMenna’s Zweig-DiMenna, Leon Cooperman’s Omega Advisors, and John Paulson’s Paulson & Co are among the hedge funds with large Citigroup (NYSE:C) investments. Lee Ainslie’s Maverick Capital, and Jim Simons’ Renaissance have HPQ in their portfolios. David Einhorn’s Greenlight, Tom Steyer’s Farallon, Ray Dalio’s Bridgewater Associates, Whitney Tilson’s T2 Partners, and Barry Rosenstein’s Jana Partners have large Microsoft (NASDAQ:MSFT) holdings.

This is a guest post written by Insider Monkey.

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