Gateway Drop Is Trouble for Legg Mason: Mutual Funds
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Legg Mason Inc. owned more Gateway Inc. shares than any other mutual fund company in the third-quarter -- a holding which could cost star fund manager Bill Miller his chance to beat the Standard & Poor's 500 Index for a tenth straight year.
Miller's $12.2 billion Legg Mason Value Trust has lost 6.3 percent this year through Wednesday, while the Standard & Poor's 500 Index declined 7.7 percent. Value Trust held 15 million Gateway shares as of Sept. 30, the most of any fund, according to New York-based TF/Carson Group, which gets its data from Securities and Exchange Commission filings.