Fund management assignment

Fund management assignment

Introduction

Majority of the firms and businesses make use of financial markets for recognising and foreseeing the position and performance of particular businesses. Fundamental analysis is commonly used approach among other approaches. Fundamental analysis considers assessment of business's stock by reviewing operational and financial condition of the business (Edwards, 2007). However, technical analysis among other approaches also has significant impact and often practiced by the financial analyst. Mainly, the aim of the paper is the analysis and evaluation that is Bill Miller still have the position to be considered by other investors (Lowenstein & Barsky, 2008).

Discussion

Majority of the firms and businesses make use of financial markets for recognising and foreseeing the position and performance of particular businesses. Fundamental analysis is commonly used approach among other approaches. Fundamental analysis considers assessment of business's stock by reviewing operational and financial condition of the business (Edwards, 2007). However, technical analysis among other approaches also has significant impact and often practiced by the financial analyst. Case study is related to the extraordinary performance recorded by the Value Trust, mutual fund that is managed by William H. “Bill” Miller III designated in Legg Mason, Inc. In this case, it has ability to define the investment behaviour and style of Bill Miller, who made a record while working with Value Trust, and made Value Trust able enough to beat S&P 500 for fifteen consecutive years. This can also be attributed to the abilities Miller regarding financial management which made Value Trust to achieve and meet its business objectives. Bill Miller is among the most famous and renowned fund manager and same is proved with the performance of Value Trust for over fifteen years against benchmark index of S&P 500. It is also notable that fifteen year of attaining positive result as compared with benchmark index has developed the longest competitive chain of success as compared with other fund manger working in the industry (Lowe, 2002).

In the case it is defined that Value Trust has worth of $11.2 billion during mid of 2005. Bill Miller approach for managing investment is found to be more research based and extensively focused. For instance, in assets of Value Trust there is around 50 percent of the investment of assets in only ten large capitalization businesses. However, it is also observed that Millers investments are found to be value stocks, and he does not hesitate in undertaking large portion of stock of growth industries. In light of this strategy, it can also be said that Miller has iconoclast style for investment. Mutual fund is referred to the tool for investment that pulls funds from particular investor regarding buying portfolio of stock, bonds, securities, also money market instruments to satisfy the objectives of the particular investors. On the other side, investor holds a share on pro rata basis in the whole investment portfolio. By doing so, various investments are added into the portfolios of fund that are being controlled by money managers in a way that it ...