Miller is featured on this week's cover of Barron's under the headline "He's Back!"
Now Miller is again back on top, Barron's notes. Value Trust is up 37.5 percent on the year, making it one of the top-performing funds in its peer group. And Miller notes that shareholders won't face any capital gains taxes for a while due to losses realized during the fall from grace.
Miller admits in the Barron's interview that he misread the nature of the recent financial crisis as a liquidity issue rather than one primarily caused by heaps of bad debt. He says he's made adjustments to the way Value Trust evaluates risk and constructs its portfolio. Among his current favorite picks are healthcare stocks Aetna, United Health and Aflac, as well as technology-focused eBay, IBM and Hewlett-Packard. Global power company AES is the fund's biggest holding.
Miller isn't the only value guru attracting attention for comebacks this year. Fortune magazine's Oct. 12 edition includes a piece titled "The Comeback Kids" that features five mutual funds that have bounced back. Among the names: Marty Whitman's Third Avenue Value, Mason Hawkins and Staley Cates' Longleaf Partners, and Bruce Berkowitz's Fairholme. Both Longleaf and Fairholme are now betting on Berkshire Hathaway, with Berkowitz telling Fortune that he thinks Warren Buffett will continue to use Berkshire's cash horde to take advantage of "cracks in the market."
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