More of Bill Miller on Morningstar

The renowned portfolio manager discusses the role concentration plays in his portfolios

Legg Mason Capital Management has long been known for concentrated portfolios built using its visionary value process. In the second installment of his conversation with Morningstar, CIO and Portfolio Manager Bill Miller discusses balancing various investment risks in order to position a concentrated portfolio for the best future returns.

As Bill explains in the video, weighing the long-term prospects of a company with its position size within the portfolio is often his biggest challenge.

To hear more of how Miller makes concentration count, select the video clip below. You can also watch Bill discuss Legg Mason Value Trust in his first Morningstar interview. In both cases, be sure to read important disclosure information about each clip.

			Watch Bill's second interview about concentration.    Read important disclosure.
			Watch Bill's first interview about Legg Mason Value Trust.    Read important disclosure.
			Investors can access Legg Mason Capital Management mutual funds within Legg Mason's fund families. Talk to your financial advisor to see if exposure to one or more of these mutual funds makes sense for you as part of a diversified portfolio. As with any investment, these funds entail varying levels of risk and may not be suitable for all investors.

Important Fund Risks – Legg Mason Value Trust
The Fund is subject to several risks, including the risk that prices of securities will go down because of the interplay of market forces. Diversification does not assure a profit or protect against market loss. The value approach to investing involves the risk that those stocks deemed to be undervalued by the portfolio manager may remain undervalued. Because this Fund expects to hold a concentrated portfolio of a limited number of securities, a decline in the value of these investments would cause the Fund’s overall value to decline to a greater degree than a less concentrated portfolio. The Fund may focus investments in certain regions or industries, thereby increasing the potential vulnerability to market volatility.

The views expressed are those of the portfolio managers as of April 24, 2008, are subject to change and may differ from other portfolio managers or the firm as a whole. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. All data referenced are from sources believed to be reliable but cannot be guaranteed. Forecasts are inherently limited and should not be relied upon as an indication of actual or future performance. All investments involve risks including loss of principal.

Investors should consider a fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about a fund. To obtain a free prospectus, please view the product specific page on this website and click on the prospectus link. An investor should read the prospectus carefully before investing.

Legg Mason Inc. is not affiliated with Morningstar.