Bill Miller Portfolio: 5 Picks From Legendary Value Investor

In this article, we discuss 5 picks from Bill Miller’s portfolio. If you want to read our detailed discussion on Miller’s market outlook and investment strategies, head over to Bill Miller Portfolio: 12 Picks From Legendary Value Investor. 

5. Chico’s FAS, Inc. (NYSE:CHS)

Number of Hedge Fund Holders: 17

Miller Value Partners’ Stake Value: $7,319,372

Chico’s FAS, Inc. (NYSE:CHS) is an omnichannel specialty retailer in the United States, Puerto Rico, Virgin Islands, and Mexico. They offer women’s private-branded clothing, intimates, and accessories under the Chico’s, White House Black Market, and Soma brands. In Q2 2023, Bill Miller held 1.36 million shares of Chico’s FAS, Inc. (NYSE:CHS) worth $7.3 million, representing 4.81% of the total 13F securities. 

On September 28, Chico’s FAS, Inc. (NYSE:CHS) experienced a prominent stock price increase after announcing its agreement to be acquired by Sycamore Partners for $7.60 per share. The deal received unanimous approval from Chico’s FAS, Inc. (NYSE:CHS)’s board of directors and is expected to finalize by the end of the first quarter in 2024, pending standard closing requirements and regulatory approvals, including those related to antitrust laws.

According to Insider Monkey’s second quarter database, 17 hedge funds were bullish on Chico’s FAS, Inc. (NYSE:CHS), compared to 16 funds in the prior quarter. Chuck Royce’s Royce & Associates is the largest stakeholder of the company, with 3.1 million shares worth $16.7 million. 

Miller Value Deep Value Select Strategy made the following comment about Chico’s FAS, Inc. (NYSE:CHS) in its Q3 2023 investor letter:

“Chico’s FAS, Inc. (NYSE:CHS) was also a strong contributor, with a share price up close to 40%. Late in the quarter, Chicos announced that Sycamore would be acquiring the company for $7.60/share, a 65% premium to the previous day’s close. Three years ago, in our Q3 2020 letter, Value: A Timely Opportunity we highlighted our initial investment in Chicos. At that time, Chicos was trading close to $1/share, under significant pressure due to the Covid outbreak. New CEO, Molly Langenstein has been successfully executing the new transformation plan, closing unprofitable stores, streamlining their operations, expanding digital and omnichannel efforts and significantly enhancing their branded merchandise. With the take-out price more than 6x above our initial cost, Chicos has been one of our strategy’s top positive contributors over the past 3 years.”