As Featured On Business.Time.com
But that’s not necessarily such a great move. Consider the story of fallen fund manager Bill Miller. Miller’s Legg Mason Value Trust fund famously outperformed the S&P 500 for 15 straight years from 1991 to 2006, making Miller look like a true genius. Then, meltdown: The fund dropped a cumulative 30% over the next five years, as Miller “doubled down on the likes of AIG, Wachovia, Freddie Mac, and Bear Stearns,” Frank Armstrong III notes in Forbes. “Boy that hurts!” Miller handed over the fund to his co-manager this April.