Bill Miller: The New York Times today did a feature article on Legg Mason’s Bill Miller, who beat the S&P 500 for 15 straight years from 1991-2005 before faltering the last few years: “Humbler, After A Streak of Magic”.
On Bill Miller, also see my “Legendary Investor Bill Miller Calls A Bottom”, Top Gun FP, April 24, 2008.
When you’ve done research and you have the right perspective, and you have a belief that there is something big changing that the markets don’t understand — or at least they don’t understand the magnitude of the change — it tests your level of belief relative to the market. That’s a business challenge. It’s anxiety-producing, and it makes investors not understand what you might understand. But that is the way you make money.
– John Burbank, Founder and President, Passport Capital
One of the best performing hedge funds last year was John Burbank’s San Francisco, CA based Passport Global Fund. John Burbank is a great investor and I loved reading two recent feature articles about him. For example, I was amazed to learn that Burbank launched Passport, which currently manages about $3.5 billion, with only $800,000 in friends and family money in August 2000: “Burbank At The Bat”, Trader Monthly, April/May issue; “Passport To Profits”, Forbes Magazine, May 5, 2008.
On the subject of great contemporary investors, also check out my previous posts on John Paulson (“Trader Of The Year: John Paulson Made Billions Shorting Subprime Mortages”, Top Gun FP, April 8, 2008) and James Melcher (“Another Great Investor You Need To Know: Balestra Capital’s James Melcher”, Top Gun FP, April 14, 2008).