Paul Wick: Slumping Bill Miller Will Go And Kodak Will Fall

In this week's Barron's, Technology Trader columnist Eric Savitz describes a recent conversation he had with Paul Wick, longtime manager of the Seligman Communications and Information Fund [SPCIX]. Savitz describes Wick as "[o]ne of the very few tech-fund managers who lives here in the Valley... Wick is a smart investor who enjoyed the boom, survived the bust and is having a fine time in this year's upturn." Wick has some remarkable comments about Eastman Kodak (EK) and legendary fund manager Bill Miller of Legg Mason Value Trust [LMVTX]:

Wick is short Eastman Kodak (EK), which he says isn't gaining traction in the printer business and continues to be hurt by the digital-photography revolution. Wick notes that Legg Mason Value Trust holds 7.5% of Kodak's shares, while Legg Mason as a whole owns close to 20%. At Value Trust, Bill Miller's legendary streak beating the S&P 500 has been replaced by extended under-performance. Wick thinks that Miller eventually will go. When he does, the Kodak stake could follow, pressuring the shares. (emphasis added)

Hat tip to Jeff Matthews, who suggests some appropriate headlines for this item.

Comments

[Frank Li:]

Not sure that Bill Miller will go -- his long run performance still beats most other managers', despite his recent failings.

Agree with the comments on EK -- no competitive advantage left.

2007 Oct 07 07:08 PM