Glenn, the # 2 elephant holding Amazon.com is Legg Mason.
>NEW YORK, May 3 (Reuters) - William Miller, manager of the $13 billion Legg Mason Value Trust Fund, said on Wednesday that he has taken the fund to an underweight position in technology stocks compared to an overweight position at the beginning of the year.
Miller said the tech underweighting "will be more later."
Miller, who has beaten the S&P 500 Index every year from 1991 until 1999, spoke at an investment conference sponsored by Grant's Interest Rate Observer.
He said that while he still likes some tech stocks, he believes that the sector "is, generally speaking, way over-exploited."
Miller said after his address that the tech weighting in the Value Trust Fund is currently about 26 percent, including America Online Inc <AOL.N>. At the start of the year, the weighting was closer to 38 percent, he said.
Miller noted that well over half of money managers have beaten the S&P 500 Index benchmark in the first quarter of 2000, an unusual situation that resulted from loading up on tech stocks, which has pushed tech stocks' prices higher.
He said that typically, most money mangers underperform the index.
Miller listed Amazon.com Inc <AMZN.O> as an example of a stock that he likes now. He said that Amazon will soon be in a situation where its need for new capital will drop to nothing.
Other stocks he liked are from the traditional "old economy" sector, including Waste Management Inc. <WMI.N>, Eastman Kodak Co. <EK.N> and Albertson's Inc. <ABS.N>.
Another technology stock he said he liked is Gateway Inc. <GTW.N>, which he said is worth double what it's trading for today.
17:37 05-03-00 |
