RNR 1001 : RNR Test 1 Notes
Document Summary
Bill miller, manager of value trust, an . 2 billion mutual fund, outperformed its" benchmark index, the s & p 500 for 14 years in a row. Its average annual return was 14. 6%, which surpassed the s & p 500 by 3. 67% per year. Mutual funds grew significantly between 1970 and 2005. Mutual fund money was being turned over faster than before. Many people were outraged at the theory that chance was as great of a method of selection. There was no real way to explain how to go about picking a profitable mutual fund. The fact that bill miller combined two different strategies to be compatible with his thinking of the market might explain the fund"s performance. He was aggressive in the market when people were scared, and scared of the market when people got greedy. He invested in opportunities others thought wouldn"t be profitable. I believe miller"s investment strategy explains performance in a great way.
