Bill Miller’s top holdings include  Amazon stock, Bitcoin, Avon and ADT

Bill Miller is riding Amazon stock and Bitcoin to help crush his benchmark in 2019. With a 46% return for his fund in 2019, Miller has restablished himself as one of the top managers in finance.

Miller acquired legendary status as a stock-picker when he outperformed the S&P500 for 15 consecutive years during his tenure at the Legg Mason Value Trust.

Now, even at 69 years of age, his value investing skills are still sharp. His usual strategy – to pick up stocks at bargain basement prices – is working fine.

Top gainers include Amazon stock

Bill Miller’s bets on Bitcoin (which has tripled since December 2018), and Avon (up 155% through June 30) have helped power the returns higher in his three-year old fund.

Another holding, Amazon stock, is up 31.42% year to date, and is said to be still undervalued.

The fund has $126 million in assets. It does suffer from volatile returns because it uses leverage on its investments.

Miller’s clearly in clover, however. His $1.5 billion Miller Opportunity Trust has gained 18% this year through July 24.

Current view

According to Miller, the current investing environment presents “an excellent opportunity for investors to earn excess returns.”

Miller recently commented on the Federal Reserve’s interest rate cut during its July meeting in an update for his investors. Miller said that the Fed didn’t change expectations by cutting the benchmark rate by 25 basis points. Instead, Miller says, the Fed only reinforced expectations.

“Since forward-looking global indicators have all been pointing to a slowing global economy, the cut did nothing to change expectations about growth or inflation,” Miller wrote. “It is worrisome that the result of yesterday’s decision sent stocks down and the dollar up, and that is now being followed today by a sharper decline in stocks, a big rally in treasuries and a big decline in inflation expectations: the exact opposite of what the Fed wants to happen.”

Miller argues that the Fed will need to do something unexpected in order for conditions and expectations to change.