Case LMVTX
LMVTX
Legg Mason Capital Management Value Trust
Table of Contents
Executive Summary
Over a period of 15 consecutive years from 1991 to 2006, Miller’s Legg Mason Value Trust (LMVTX) was able to outperform the S&P 500. In the recent 22 years, there were two non-ideal periods of LMTVX. The first one was during the bear markets of early 2000s (from 2000 to 2002) caused by the crisis of tech companies and the 911. The 2nd one started from 2006 to 2009 during the world economic recession resulted by subprime mortgage crisis. However, during year 2000 to 2001 LMVTX still outperformed the S&P500. Year 2006 was the 1st first LMVTX tailed the return of the S&P 500 since 1991.
In the next five-year period after 2006, LMVTX (Red Line) had a cumulative loss 30.05%, comparing to a 10.48% cumulative return of S&P 500 ETF index (Blue Line) while it is significantly less volatile as well. By the end of March 2012, Legg Mason Value Trust had a five-year annualized loss of (-6.9%) vs. a positive return for the S&P 500 and SPY ETF (Blue line) of 2.01%.
Return of LMVTX (1991-2012)
Comparison of Returns
Introduction
Legg Mason Capital Management Value Trust
Legg Mason Capital Management Value Trust, Inc. incorporated in the USA. The Fund 's objective is long-term growth of capital. The Fund invests primarily in equity securities that, in the adviser 's opinion, offer the potential for capital growth. The adviser follows a value discipline in selecting securities and generally invests in companies with market caps greater than $5 billion.
Bill Miller is Chairman and former Chief Investment Officer of Legg Mason Capital Management, a subsidiary of Legg Mason, Inc. He is formerly the portfolio manager of the Legg Mason Capital Management Value Trust (Mutual fund: LMVTX) and is currently the portfolio manager of the Legg Mason Opportunity Trust (Mutual fund: LMOPX) mutual funds. In November 2011, Legg Mason Capital Management announced that Miller would turn
Legg Mason Capital Management Value Trust
Table of Contents
Executive Summary
Over a period of 15 consecutive years from 1991 to 2006, Miller’s Legg Mason Value Trust (LMVTX) was able to outperform the S&P 500. In the recent 22 years, there were two non-ideal periods of LMTVX. The first one was during the bear markets of early 2000s (from 2000 to 2002) caused by the crisis of tech companies and the 911. The 2nd one started from 2006 to 2009 during the world economic recession resulted by subprime mortgage crisis. However, during year 2000 to 2001 LMVTX still outperformed the S&P500. Year 2006 was the 1st first LMVTX tailed the return of the S&P 500 since 1991.
In the next five-year period after 2006, LMVTX (Red Line) had a cumulative loss 30.05%, comparing to a 10.48% cumulative return of S&P 500 ETF index (Blue Line) while it is significantly less volatile as well. By the end of March 2012, Legg Mason Value Trust had a five-year annualized loss of (-6.9%) vs. a positive return for the S&P 500 and SPY ETF (Blue line) of 2.01%.
Return of LMVTX (1991-2012)
Comparison of Returns
Introduction
Legg Mason Capital Management Value Trust
Legg Mason Capital Management Value Trust, Inc. incorporated in the USA. The Fund 's objective is long-term growth of capital. The Fund invests primarily in equity securities that, in the adviser 's opinion, offer the potential for capital growth. The adviser follows a value discipline in selecting securities and generally invests in companies with market caps greater than $5 billion.
Bill Miller is Chairman and former Chief Investment Officer of Legg Mason Capital Management, a subsidiary of Legg Mason, Inc. He is formerly the portfolio manager of the Legg Mason Capital Management Value Trust (Mutual fund: LMVTX) and is currently the portfolio manager of the Legg Mason Opportunity Trust (Mutual fund: LMOPX) mutual funds. In November 2011, Legg Mason Capital Management announced that Miller would turn
References: Legg Mason Value Trust. (2006). Legg Mason Value Trust (LMVTX) Letter to Shareholders. Levenson, E Light, L. (2001, July). Why Legg Mason 's Top Fund Trails: Financials.