Background Information Bill Miller is one of the most renowned professional fund managers. This can be proven by the outperformance of the Value Trust, which is managed by him, compared to its benchmark index, the Standard & Poor’s 500 Index (S&P 500), for an astonishing 14 years in a row; and this marked the longest streak of success for any manager in the mutual-fund industry. By the middle of 2005, Value Trust is worth $11.2-billion. Bill Miller’s approach to investment management was research-intensive and highly concentrated. For instance, nearly 50 percent of Value Trust’s assets were invested in just 10 large-capitalization companies. While most of Bill Miller’s investments were value stocks, Efficient Market Hypothesis (EMH) There are three levels of market efficiency which were distinguished by the degree of information believed to be reflected in current securities’ prices. The weak form of efficiency maintained that all past prices for a stock were impounded into today’s price. The semistrong form of efficiency held that today’s prices reflected not only all past prices, but also all publicly available information. The strong form of efficiency held that today’s stock price reflected all the information that could be acquired through a close analysis of the company and the economy. Many scholars argued that the sock market followed a “random walk”, where the price movements of tomorrow were essentially uncorrelated with the price movements of today. They argued that capital markets’ information was efficient, and that the insights available to any one fundamental analyst were bound to be impounded quickly into share prices. If EMH were correct and all current prices reflected the true value of the underlying securities, then arguably it would be impossible to beat the market with superior skill or intellect. “In such a market,” as one economist said, “We would observe lucky and
Related Documents: Essay on Bill Miller and Value Trust
Bill Miller and Value Trust In 2005, it was documented that Bill Miller’s Value Trust, an $11.2 billion mutual fund, had outpaced the Standard and Poor’s Index for 14 years in a row. It is every fund manager’s goal to beat the S&P index each year but to do so for 14 straight years is truly incredible. However, there are several academics who question the skill and talent of Miller. They argue that much of his success is purely based on luck. In fact, some have simplified his returns to…
Cesar Avila Ms. Christine Walsh English 109H 3 December 2012 Editorial, ACLU.org As the “melting pot” of the world, the rich and unique culture of the United States can be attributed to the fusion of traditions and values brought by the waves of immigrants who sought to attain the American dream. President John F. Kennedy once remarked in his book A Nation of Immigrants that “every ethnic minority, in seeking its own freedom, helped strengthen the fabric of liberty in American life...We see…
include meet capital market expectations and contracting motivation (Healy & Wahlen, 1999). The incentive of meet capital market expectation is created by external investors and financial analysts, they widespread use of accounting information to help value stock of a company. If the growth firm cannot meet the analysts’ expectations it may suffer large negative price reactions (Skinner and Sloan, 2002). Inversely, if the firm report growth continuously in annual earnings, it may get a premium price than…
Value Alignment for Wal-Mart Fadi Anadri, Betrina Hood, Schercitha Miller, Samantha Redfearn BUS/475 Bill Crigger July 21, 2010 Value Alignment for Wal-Mart An individual’s personal values depict what is important in his or her life, and such values often determine his or her behavior. Furthermore, values are an enlightenment of why people act or react the way they do, based on their personal beliefs. The combined values of an individual and organization must be compatible…
returns as a linear relation of their beta exposures Active Equity MANAGEMENT ……………………………………………………..6 • Forecasting of the returns • Optimal active positions for a maximized Information Ratio • Maximization of the value-added function INTRODUCTION The first step required in building our portfolio was to choose the constituents of the portfolio. We decided only to choose UK listed stocks and our initial objective was to try and build a well-diversified…
always] A. decision rule – categorical imperative V. Justice – based on fairness - can you be fair and moral - retributive justice VI. Ethics of care (feminist ethics) – trust -> act of building relationships with others bonds = good, broken bonds = bad -> quality/ quantity of trust in the world 1/16/2013 III. Utilitarianism (Benthum, Mill) utility, usefulness …the “greatest happiness” principles A) decision Rule—act to produce the greatest aggregate good…
can be linked to specific events in world history (Miller, 1998). First, the Arab oil embargo of 1973 caused a widespread oil crisis and brought crude oil from three dollars a barrel to a staggering twelve dollars a barrel. Second, the 1979 Iranian revolution caused another crisis that brought crude oil prices to an all time high of thirty-six dollars per barrel. Finally, the third major shift occurred in 1991 due to the Persian Gulf War (Miller, 1998). Source: The Energy Information Administration…
The Cultural Aspect of Mergers and Acquisitions Factors to success and failure illustrated in two industry examples Contents 1. Introduction .................................................................................................................................................1 2. Cultural Aspects of Mergers & Acquisitions – Literature Review ...............................................................2 3. 2.1. Definitions ........................................…
of rapid, dramatic, and long-lasting change. We argue that those who expect such vivid and enduring transformations in the American party system will be waiting awhile. Just as record low levels of approval for Congress and a continuing decline in trust in the government’s ability to do the right thing are not likely to translate into the rise of a viable, centrist third party, there is not much evidence that President Obama’s reelection has created a durable Democratic realignment (but see Judis…
Overview of the Chapter Leadership is a key ingredient in effective management. When leaders are effective, their subordinates are highly motivated, committed, and high performing. When leaders are ineffective, chances are good that their subordinates do not perform to the level of their capabilities, lack motivation, and may be dissatisfied. This chapter describes what leadership is and examines major leadership models and theories that have been developed by various researchers. It also describes…