Miller Value Partners is an investment advisor firm launched 20 years ago, which serves as the investment manager for the Miller Value Funds Family. It was founded by Bill Miller, its Chairman, CIO, and co-Portfolio Manager for Income Strategy and Opportunity Equity. The fund’s investment philosophy has a special feature – it values research from unusual sources in order to better comprehend the complexity of the market. Recently, Miller Value Partners has published its new Market Letter, a complete version of which you can track down in a link below, as we bring you only a small part of it.
The bull market that began in early March 2009 passed its 10th birthday last month, something no one expected when the S&P 500 bottomed at 666. The economic expansion that has accompanied it — as usual, the market led the beginning of the expansion by about 6 months — will become the longest in history when, as appears likely, it surpasses the previous record later this year. While this has generated the usual angst and fretting about when the inevitable recession, and concomitant bear market, will occur, it is worth noting that Australia is in its 28th year of continuous expansion.
What follows are some reflections occasioned by this long bull market. They are not meant to be systematic or complete, nor are they meant to suggest timeless principles that can be applied in the future. They reflect how we have navigated this period, and so perhaps may have some applicability to others who share our long-term, patient, contrarian (for the most part), value-driven philosophy. We have been fortunate that our strategy that has been available during that period has outperformed the S&P 500 by over 450 basis points per year.1 Luck surely has played a role over that period, but our views have been sufficiently different from the consensus to lead to that highly differentiated performance.
You can read the entire Miller Value Partners Market Letter by clicking on this link.