Meet the Next Bill Miller

Every fund investor knows Bill Miller of Legg Mason Value Trust (FUND: LMVTX  ) . His 15 consecutive years of beating the S&P 500 is astounding. But now, investors want to know who could beat his mark.

Morningstar has six candidates, each of which has outperformed the S&P for eight consecutive years:





+/- S&P 500

Cambiar Opportunity





Manning & Napie
Pro-Blend Maximum
Term A





American Fundamental


5.75% front-end



T. Rowe Price
Spectrum Growth





Goldman Sachs
Growth Strategy


5.50% front-end



Target Growth


5.50% front-end



Source: Morningstar
*T. Rowe Price Spectrum Growth and Goldman Sachs Growth Strategy comprise other funds.

I take three things from this list. First, you needn't pay for results. Look at the top two performers. Neither charges a fee to invest. Nor does T. Rowe Price Spectrum Growth. Of the top four, only American Fundamental Investors charges a load.

Second, management matters. Bargain hunter Brian Barish has roughly $2 million in savings at stake in Cambiar Opportunity, which he's managed since the fund's inception in June 1998.

Third, flexibility counts. Miller is just as comfortable swinging for the fences -- think Google (Nasdaq: GOOG  ) -- as he is going for the base hit -- think Citigroup (NYSE: C  ) . Similarly, list-topper Barish will speculate on turnarounds at Infineon (NYSE: IFX  ) and Home Depot (NYSE: HD  ) while bulking up on by-the-numbers cheap stocks like Intel (Nasdaq: INTC  ) and Washington Mutual (NYSE: WM  ) . That touch of creativity has me wondering whether Barish, who's still relatively unknown, will remain obscure for much longer.

Why streaks don't matter
But, of course, streaks don't really matter. If anyone proves that, it's Joe DiMaggio -- baseball's Bill Miller. Known best for his 56-game hitting streak, DiMaggio is enshrined in baseball's Hall of Fame at Cooperstown, N.Y., not because of the streak, but because he hit .325 with two batting titles and had more than 2,200 hits over 13 seasons.

The splendid careers of both prove that it's a long-term commitment to results that matters most. It's what separates those who are in Cooperstown from those who aren't. And, in investing, it separates the seriously rich from ... well, everyone else.

That's why, at Motley Fool Champion Funds, advisor Shannon Zimmerman says to invest only in no-load funds run by tenured managers who, like Barish, have a big chunk of their personal wealth invested alongside you. Shannon's fund recommendations are collectively up more than 13 percentage on their benchmarks as a result. Intrigued? Test-drive the service free for 30 days and you'll have access to his list of recommended funds. There's no obligation to subscribe.

Fool contributor Tim Beyers is a Fool for funds and likes his stocks sizzling. Tim didn't own shares in any of the stocks or funds mentioned in this article at the time of publication. Home Depot and Intel are Inside Value picks. Washington Mutual is an Income Investor choice. The Motley Fool's disclosure policy is always championship caliber.

Read/Post Comments (0) | Recommend This Article (21)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 522113, ~/Articles/ArticleHandler.aspx, 10/28/2016 7:28:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,161.19 -8.49 -0.05%
S&P 500 2,126.41 -6.63 -0.31%
NASD 5,190.10 -25.87 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/28/2016 4:00 PM
C $49.56 Down -0.37 -0.74%
Citigroup CAPS Rating: ***
GOOGL $819.56 Up +2.21 +0.27%
Alphabet (A shares… CAPS Rating: *****
HD $123.58 Up +1.32 +1.08%
Home Depot CAPS Rating: ****
IFX.DL $0.00 Down +0.00 +0.00%
Infineon Technolog… CAPS Rating: **
INTC $34.74 Down -0.07 -0.20%
Intel CAPS Rating: ****
WAMUQ.DL $0.00 Down +0.00 +0.00%
Washington Mutual,… CAPS Rating: No stars