The biggest slump in U.S. homebuilder stocks since 1994 has spurred investors with some of this decade's best records to snap up shares of Centex Corp., KB Home and Toll Brothers Inc. So far their confidence has been unrewarded. Miller, the fund manager who has beaten the S&P 500 a record 15-straight years with his Legg Mason Value Trust Fund, last quarter added KB Home to the $5.97 billion Legg Mason Opportunity Trust Fund, according to regulatory filings. He also increased holdings in Centex and Lennar Corp. and maintained his stake in Pulte Homes.
``We expect to see the public companies continue to get market share from the little guy,'' said Muhlenkamp, who holds Centex, Toll Brothers, and Pulte Homes in his $3.1 billion Muhlenkamp Fund, which has outperformed the S&P 500 every year this decade. Even if earnings drop by 20 percent and ``the stock is selling at 7 times earnings instead of 5 times earnings, we think that's dirt cheap for a good industry.''
Miller, the fund manager who has beaten the S&P 500 a record 15-straight years with his Legg Mason Value Trust Fund, last quarter added KB Home to the $5.97 billion Legg Mason Opportunity Trust Fund, according to regulatory filings. He also increased holdings in Centex and Lennar Corp. and maintained his stake in Pulte Homes. Miller didn't return calls.
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``We expect to see the public companies continue to get market share from the little guy,'' said Muhlenkamp, who holds Centex, Toll Brothers, and Pulte Homes in his $3.1 billion Muhlenkamp Fund, which has outperformed the S&P 500 every year this decade. Even if earnings drop by 20 percent and ``the stock is selling at 7 times earnings instead of 5 times earnings, we think that's dirt cheap for a good industry.''
Miller, the fund manager who has beaten the S&P 500 a record 15-straight years with his Legg Mason Value Trust Fund, last quarter added KB Home to the $5.97 billion Legg Mason Opportunity Trust Fund, according to regulatory filings. He also increased holdings in Centex and Lennar Corp. and maintained his stake in Pulte Homes. Miller didn't return calls.
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