In this piece, we will take a look at Bill Miller's latest stock picks. If you want to skip our overview of Miller, his firm, and the latest news revolving around his hedge fund, then you can skip ahead to Bill Miller's Latest 5 Stock Picks.
Legendary value investor Bill Miller is the founder, Chairman, and Chief Investment Officer of Miller Value Partners. Before establishing Miller Value Partners, Bill, along with his partner Ernie Kiehne, founded Legg Mason Capital Management, serving as portfolio managers of the Legg Mason Capital Management Value Trust since its inception in 1982. Bill assumed sole management of the fund in December 1990 and continued in this role for the next two decades. He also held the position of research director at Legg Mason from October 1981 to June 1985 and took on overall responsibility for Legg Mason’s equity funds management division in 1990. Before joining Legg Mason in 1981, he served as treasurer of the JE Baker Company, a significant manufacturer serving the steel and cement industries.
Notably, the esteemed investor stands among the few who continue to advocate for Bitcoin, stating that if the Federal Reserve implements overly stringent monetary policies, Bitcoin prices are likely to outperform the broader market. Furthermore, due to its detachment from the traditional financial system, the investor believes that Bitcoin would experience limited repercussions during periods of market upheaval. During an interview with Barron's, Miller expressed surprise at Bitcoin's resilience amidst the downfall of FTX, once the world's third-largest cryptocurrency exchange, which filed for bankruptcy in early November 2022. He suggested that part of Bitcoin's subdued price performance could be linked to rising interest rates. Additionally, Miller underscored his distinction between Bitcoin, which he views as a prospective store of value akin to digital gold, and all other cryptocurrencies, which he categorizes as speculative ventures. Here is what Miller had to say:
“If anyone has a time horizon of longer than a year, you should do quite well in Bitcoin. I wouldn’t call that an investment. I would call it a speculation, but I would call it a sound speculation.”
Earlier in late January, Miller Value Partners introduced its actively managed ETF, Miller Value Partners Appreciation ETF (NYSE:MVPA), designed to focus on a concentrated portfolio of undervalued stocks as perceived by the fund’s managers. With an expense ratio of 0.60%, MVPA aims to identify companies with overlooked "intrinsic value." Bill Miller IV, son of the legendary Bill Miller and Chief Investment Officer at Miller Value, expressed optimism about the environment for actively managed value funds, stating that capital now has a cost again, making the current environment compelling for value investing. With interest rates on the rise, he states that the era of easy money is coming to an end, which typically favors value stocks. At launch, MVPA's portfolio comprises 26 companies, with top holdings including Builders FirstSource, Inc. (NYSE:BLDR), MicroStrategy Inc (NYSE:MSTR), and Encore Wire Corporation (NASDAQ:WIRE).
Miller Value Partners employs a deep value strategy in equities, typically suited for long-term investors. This approach entails recognizing and exploiting short to mid-term market inefficiencies that temporarily depress a company’s stock price below its intrinsic long-term value. The strategy emphasizes maintaining investments for a minimum of 3 years. Following this strategy, some of Bill Miller's top picks as of the fourth quarter of 2023 include Stellantis N.V. (NYSE:STLA), Viatris Inc. (NASDAQ:VTRS), and AT&T Inc. (NYSE:T), among others listed below.
Bill Miller's Latest 13 Stock Picks
Bill Miller of Miller Value Partners
Our Methodology
We've compiled the following stocks from Bill Miller's Miller Value Partners portfolio as of Q4 2023. Additionally, we've included hedge fund sentiment for each stock, derived from Insider Monkey’s database of 933 elite hedge funds tracked as of the end of the last quarter of 2023. The list is organized in ascending order based on the value of Miller Value Partners' stake in each holding.
Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
Miller Value Partners' Q4 2023 Investment Value: $5.19 million
Encore Wire Corporation (NASDAQ:WIRE) specializes in the manufacturing and distribution of electrical building wires and cables across the United States. The company's product range includes NM-B cables, UF-B cables, THHN/THWN-2 wires, XHHW-2 wires, USE-2 cables, RHH/RHW-2 cables, and various other types of wire products. These items are sold to wholesale electrical distributors through independent manufacturers' representatives and cater to a wide range of sectors including residential, commercial, industrial, and renewable energy industries.
Encore Wire Corporation (NASDAQ:WIRE) reported its fourth-quarter 2023 results in February. Net sales for the year ending December 31, 2023, amounted to $2.568 billion, down from $3.018 billion in 2022. However, copper unit volume, measured in pounds of copper contained in the wire sold, increased by 6.7% in 2023 compared to the previous year. Additionally, aluminum wire accounted for 12.9% of net sales in the year ending December 31, 2023.
During Q4 2023, 30 out of the 933 hedge funds surveyed by Insider Monkey were Encore Wire Corporation (NASDAQ:WIRE)’s shareholders. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital was the largest stakeholder through its $67 million stake.
Much like Stellantis N.V. (NYSE:STLA), Viatris Inc. (NASDAQ:VTRS), and AT&T Inc. (NYSE:T), Encore Wire Corporation (NASDAQ:WIRE) is one of Bill Miller's top stock picks.
Miller Value Partners' Q4 2023 Investment Value: $5.35 million
Nabors Industries Ltd. (NYSE:NBR) is a leading global oil and gas drilling contractor founded in 1972. Headquartered in Houston, Texas, the company boasts one of the largest land drilling fleets globally, comprising around 400 rigs operating in over 20 countries.
During last year’s fourth quarter, 20 out of the 933 hedge funds profiled by Insider Monkey had bought Nabors Industries Ltd. (NYSE:NBR)’s shares. Jeffrey Gendell’s Tontine Asset Management owned the largest stake courtesy of its $32.35 million investment. Miller Value Partners reported holding a $5.35 million stake in the company during the same quarter.
Miller Value Partners' Q4 2023 Investment Value: $5.73 million
Gannett Co., Inc. (NYSE:GCI) operates as a prominent media and marketing solutions provider in the United States, functioning through three segments – Domestic Gannett Media, Newsquest, and Digital Marketing Solutions. The company offers print services through home delivery and single-copy sales, alongside digital-only subscriptions and advertising solutions.
On February 22, Gannett Co., Inc. (NYSE:GCI) disclosed a Q4 GAAP EPS of -$0.16 and revenue of $669.4 million, falling short of Wall Street estimates by $0.18 and $3.63 million, respectively.
Insider Monkey’s fourth-quarter database reveals that 20 hedge funds were optimistic about Gannett Co., Inc. (NYSE:GCI), up from 18 funds in the preceding quarter.
Miller Value Partners' Q4 2023 Investment Value: $7.43 million
CTO Realty Growth, Inc. (NYSE:CTO) is a publicly traded real estate investment trust specializing in owning and managing a portfolio of premium retail-based properties, mainly situated in high-growth markets across the United States.
In March, CTO Realty Growth, Inc. (NYSE:CTO) revealed its acquisition of Marketplace at Seminole Towne Center, a multi-tenant retail power center spanning 318,000 square feet in the Sanford submarket of Orlando, Florida. The acquisition was completed for a total purchase price of $68.7 million, aligning with the company's current guidance for initial cash yields.
CTO Realty Growth, Inc. (NYSE:CTO) was a part of 15 hedge fund portfolios at the end of Q4 2023, compared with 12 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $39.3 million.
Miller Value Partners' Q4 2023 Investment Value: $7.7 million
Viatris Inc. (NASDAQ:VTRS) is an American multinational pharmaceutical and healthcare company with its headquarters located in Canonsburg, Pennsylvania. It was created as a result of the merger between Mylan and Upjohn, a division of Pfizer, on November 16, 2020.
As of April 7, the global pharmaceutical company offers investors a quarterly dividend of $0.12 per share, resulting in a dividend yield of 4.07%. This company initiated dividend payments in 2021 and has increased its dividend payout once since its inception.
As of the end of Q4 2023, 42 hedge funds tracked by Insider Monkey reported owning stakes in Viatris Inc. (NASDAQ:VTRS), which remained unchanged from the previous quarter. The total value of these stakes is over $1.2 billion. With roughly 20 million shares, Deerfield Management was the company’s leading stakeholder in Q4. Bill Miller's hedge fund reported holding around $7.7 million worth of VTRS shares during the quarter.
Miller Value Partners' Q4 2023 Investment Value: $7.84 million
The Buckle, Inc. (NYSE:BKE) is a prominent American fashion retailer offering a wide range of clothing, footwear, and accessories for men, women, and children. With a significant presence across the United States, the company operates 451 stores spanning 42 states under the names Buckle and The Buckle.
While The Buckle, Inc. (NYSE:BKE) experienced a nearly 5% decline in fourth-quarter revenue, totaling $382.3 million compared to the same period last year, the company maintained a robust cash position. The company ended the year with over $268.2 million in cash and cash equivalents, up from $252 million in the previous year.
According to Insider Monkey's Q4 2023 database, 20 hedge funds held investments in The Buckle, Inc. (NYSE:BKE), down from 22 in the previous quarter. These investments amounted to a collective value exceeding $144.4 million. Citadel Investment Group, led by Ken Griffin, emerged as the largest stakeholder of the company during the fourth quarter.
Miller Value Partners' Q4 2023 Investment Value: $7.97 million
OneMain Holdings Inc (NYSE:OMF) is a financial services holding company based in Evansville, Indiana, with offices across the United States. The company specializes in providing personal loan products, credit cards, and optional credit insurance. Additionally, it offers a customer-focused financial wellness program and engages in acquisitions and dispositions of assets and businesses.
In February, OneMain Holdings Inc (NYSE:OMF) reported its Q4 results. The adjusted earnings per share for the period stood at $1.39, surpassing estimates by $0.01. Additionally, the company's revenue in the quarter experienced a 3.8% year-over-year increase, reaching $1.1 billion, which exceeded estimates by $10 million.
As of the end of the fourth quarter of 2023, 32 hedge funds tracked by Insider Monkey had stakes in OneMain Holdings Inc (NYSE:OMF).
“OneMain Holdings, Inc. (NYSE:OMF) is a name we have owned for years. It’s a high return, well-managed franchise that has successfully navigated credit cycles for nearly a hundred years. The stock has continued to climb higher with prudent risk management and an 8% dividend yield.”
OneMain Holdings Inc (NYSE:OMF) joins the ranks of Stellantis N.V. (NYSE:STLA), Viatris Inc. (NASDAQ:VTRS), and AT&T Inc. (NYSE:T) in Bill Miller's latest stock portfolio.
Miller Value Partners' Q4 2023 Investment Value: $8.67 million
Quad/Graphics, Inc. (NYSE:QUAD) is a global provider of marketing solutions, offering a range of printing services such as publications, catalogs, and direct mail, along with marketing services like data analytics and creative content services.
In the fourth quarter of 2023, Quad/Graphics, Inc. (NYSE:QUAD) was included in 10 hedge fund portfolios, up from 9 in the previous quarter. Notably, D E Shaw held a significant stake in the company, with 237,454 shares valued at $1.28 million. According to securities filings for Q4 2023, Miller held around 1.60 million shares of Quad/Graphics, Inc. (NYSE:QUAD) worth $8.67 million.
