I was recently reading about the possible end of Bill Miller’s win streak against the S&P500 Index. His Legg Mason Value Fund has beaten the S&P500 for an impressive 15 years in a row. However, this year he’s trailing the index by about 10% at this point. The manager with the next [...]

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Underweight overvalued stocks and overweight undervalued stocks. Sounds like a simple recipe for beating the markets. Essentially, that’s the idea behind what some have called the next step in the evolution of indexing.
The argument is that traditional capitalization-weighted indexes (such as the S&P 500) by their very nature will overweight stocks that are [...]

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