When Bill Met Freddie

On December 31, Freddie Mac (FRE) shares were worth $34.07 apiece, and Bill Miller owned 15 million of them.

By March 31, Freddie Mac shares had fallen 25% to $25.32 each, and Bill Miller owned 50 million of them.

As of July 31, Freddie Mac shares had collapsed all the way to $8.17. And Bill Miller owned 80 million of them.

Anybody else getting the impression that Bill Miller is one of the world's worst bear market fund managers?

Comments

[madasiwannabe:]

Boy, if Freddie shoots up to $30, Bill Miller will be considered one of the smartest guys on Wallstreet. On the other hand, if the GSE's fail, the economy will follow so fast that no one will remember who Bill Miller is. With a Federal backstop and plenty of other big funds and banks to keep him company, the rewared from here seems to outway the risk. If I was in that deep and staring at $5 shares, I might just try to get a few million more to further improve my position. Stock is always worth exactly what you sell it for and the best time to buy it is when no one else will. I say hang on to the stocks, buy another case of Rolaides and hang on tight Bill. There's a lot more room up than down.

2008 Aug 12 08:33 PM

[User 208427:]

Agreed! Bill has a history of buying value, and then doubling down. My bet is on him in the long term.

2008 Aug 13 10:53 AM

[oneandtwenty:]

Put in the same fact pattern and substitute AMZN for FRE and you had quite a different result. Bill and team can be wrong on FRE, but if he believes in the situtation, then "the lowest average cost, wins".

2008 Aug 14 07:22 PM

[ozcutty2:]

Felix, its called having the courage of your convictions. Is Bill running scared? hell no, he's backing up the truck.

Go long Legg Mason my friends, he will be back!

2008 Aug 18 11:48 PM