Legg Mason Inc.’s Mary Chris Gay, a portfolio manager at the division that was home to Bill Miller, has left as her unit is folded into the firm’s ClearBridge Investments equity affiliate after a decline in assets.
Equities that fell farthest last year are surging the most in a decade, reversing the fortunes of mutual funds and signaling developed countries, banks and Asian exporters will extend the global rally.
Bill Miller, the Legg Mason Inc. manager famous for beating the Standard & Poor’s 500 Index for a record 15 years through 2005, will step down from his main fund after trailing the index for four of the past five years.
The work that earned Eugene Fama the Nobel Prize in economics provided the intellectual foundation for index-tracking funds, which have upended stock picking as investors abandon active money managers.
Legg Mason Inc.’s Sam Peters , the manager named last week to eventually succeed Bill Miller on the $4.24 billion Value Trust fund, said clients shouldn’t expect big changes to the investment style put in place by his mentor.