Will Bill Miller's Legg Mason Value Trust beat the S&P 500 Index once again in 2004? It really doesn't matter! The important question to ask is, will investors in this fund be economically better off than by investing in other funds or in a more diversified portfolio? Expect a great deal of media hype as Miller strives to extend his streak. For the record, as of the close of the third quarter on Sept. 30, 2004, LMVTX was down 2.7% while the Vanguard S&P 500 Index was up about 1.4% year-to-date-a deficit of more than 4% to overcome.
Christopher P. Parr, CFP, MBA, is vice president and principal with Financial Advantage Inc., a Columbia, Md.-based, independent and fee-only financial advisory firm. He can be reached at (410) 715-9200 or at [email protected].