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Both Bill Miller and David Dreman have lost a considerable amount of money over the past few years. Bill Miller was one of the top investors just 5 years ago. However, since then, his mutual fund Legg Mason Capital Management Value lost around 40%. David Dreman’s Dreman Value managed $22 billion in 2007. However, during the financial crisis of 2008, his hedge fund was hit hard. As of now, Dreman has $5.5 under management. Despite their performance, Bill Miller and David Dreman are currently among the most popular mutual fund managers. Here are some stocks both Miller and Dreman are bullish about:

Company

Ticker

Bill Miller

David Dreman

Return Since June

MICROSOFT

MSFT

240828

17365

0%

WELLS FARGO

WFC

190125

30576

-14%

CISCO SYSTEMS

CSCO

185267

13433

3%

GENERAL ELECTRIC

GE

170730

29106

-20%

JPMORGAN CHASE

JPM

169278

23407

-20%

UNITEDHEALTH

UNH

167181

29758

-10%

CONOCOPHILLIPS

COP

166364

35341

-14%

AMERICAN EXPRESS

AXP

165208

20242

-8%

CITIGROUP INC

C

157053

20359

-35%

AETNA INC NEW

AET

155930

20482

-13%

B P PLC

BP

136993

30083

-17%

BANK OF AMERICA

BAC

136942

23705

-36%

INTEL CORP

INTC

130550

20264

-8%

PFIZER INC

PFE

126541

37097

-10%

BEST BUY

BBY

102121

23962

-21%

UNITED TECH

UTX

54041

23305

-19%

LOWES

LOW

48941

18344

-17%

ALLIED WORLD ASSUR

AWH

36014

39220

-7%

P M C SIERRA INC

PMCS

26603

41188

-17%

GOLDMAN SACHS

GS

23670

16275

-22%

AIRCASTLE LTD

AYR

22408

41661

-17%

The largest holding of Bill Miller’s current equity portfolio is Microsoft. Miller’s Legg Mason had shares of Microsoft worth $240.8 million at the end of June. During the second quarter, Miller reduced stake in Microsoft by 27%. He is still one of the top 10 stakeholders of the company. David Dreman had around $17.4 million invested in Microsoft at the end of June. Since the end of the second quarter, the share price of Microsoft has not changed. David Einhorn is one of the many famous hedge fund managers who is bullish about Microsoft. In his recent Ira Sohn Conference speech, he mainly discussed the reasons why he likes Microsoft (read David Einhorn’s speech). David Einhorn’s Greenlight had around $385 million invested in Microsoft at the end of June.

At the end of the second quarter, David Dreman had approximately $30.6 million invested in Wells Fargo. Compared to Dreman, Bill Miller has a larger stake in the company. As of June, Miller’s Legg Mason had $190 million invested in Wells Fargo. During the second quarter, he reduced his holding by 31%. Regardless, the company is still among his top 10 holdings as of June. Since the end of the second quarter, Wells Fargo has lost 14%. The investment guru, Warren Buffett has the highest stake in the company. Buffett’s Berkshire Hathaway had around $9.88 billion invested in Wells Fargo at the end of the second quarter (see Warren Buffett’s top stock picks).

Bill Miller has one of the top 5 positions in Cisco. As of June, Miller’s Legg Mason had $185 million invested in the company. During the second quarter, he reduced stake in the company by 30%. Cisco is one of the top 10 holdings of Miller’s latest equity portfolio. David Dreman had a comparatively minor stake of $13.4 million in Cisco as of June. Since the end of the second quarter, the share price of Cisco has gone up by 3%. Jeffrey Tannenbaum’s Fir Tree invested $131 million in Cisco before the end of the second quarter (check out Tannenbaum’s latest stock picks).

Bill Miller currently has the 3rd largest stake in GE. According to the June filings, Miller’s Legg Mason owned 9 billion shares of GE worth $170.7 million. During the second quarter, Miller reduced stake in the company by 30%. David Dreman had a minor stake of $29.1 million in GE at the end of June. Since the end of the second quarter, GE has returned -20%. Ken Fisher’s Fisher Asset Management has the largest position in the company. Fisher had approximately $590.8 million invested in GE at the end of June (view Ken Fisher’s favorite stock picks).

JP Morgan Chase & Co.: David Dreman had $23.4 million in JPM at the end of the second quarter. Bill Miller, on the other hand, had a higher investment of $169 million in JPM as of June. Miller reduced his stake in the company by 25% before the end of the second quarter. Since June, JPM has lost 20%. Lee Ainslie’s Maverick Capital had a high stake in JPM of around $411.9 at the end of June. Ainslie currently has the 2nd largest position in the company (take a look at Lee Ainslie’s top holdings).

Goldman Sachs, Best Buy, Bank of America and Citigroup lost more than 20%. This indicates that banking stocks as a group may be undervalued. Intel and American Express are among the stocks that outperformed the market. Interestingly the three stocks at the top of the list managed to beat the market on the average. We believe investors may be able to beat the market by focusing on Miller’s and Dreman’s top stock picks.

Disclosure: I am long C, MSFT, COP.

Source: Bill Miller And David Dreman Are Bullish About These Stocks