Bill Miller's Q4 Additions Struggle Amid Market Uncertainty, What Else Is Dragging Them Down? - First Tru

Bill Miller IV‘s investment firm has seen significant losses in its fourth-quarter portfolio additions as market uncertainties persist.

What Happened: According to U.S. Securities and Exchange Commission filings from February 14, Miller Value Partners, which investor Bill Miller III‘s son runs, added three stocks to its portfolio in the fourth quarter of 2024. Since then, these stocks have seen significant drops.

All three new positions have faltered:

Carlyle Group Inc. (NASDAQ:CG) fell 25.07%, losing $908,600 in value on its 70,000-share position. Carlyle CEO Harvey Schwartz recently cited policy uncertainty as a major market challenge during Semafor’s World Economy Summit, noting that businesses “need a rule set so they can optimize.”

Atkore Inc. (NYSE:ATKR) dropped 11.04%, representing a $296,370 loss on 37,000 shares. The electrical products manufacturer recently announced a $121-162 million impairment charge related to HDPE assets while maintaining its full-year fiscal 2025 outlook. The company also faces a securities lawsuit alleging it engaged in price-fixing schemes for PVC pipes.

Semler Scientific Inc. (NASDAQ:SMLR) suffered the steepest decline at 30.66%, with 43,000 shares losing $651,990 in value. Since December, Semler’s stock has plummeted over 52%, prompting an investigation by Kaskela Law on behalf of long-term investors.

The losses in Miller Value Partners' fourth-quarter portfolio additions appear to align with broader market trends.

The Dimensional ETF Trust Dimensional U.S. Core Equity 2 ETF (NYSE:DFAC), which holds Carlyle Group stock, has dropped 10.62%, from $66.80 to $59.70. The First Trust RBA American Industrial Renaissance ETF (NASDAQ:AIRR), which includes Atkore, has fallen 9.28%, from $77.20 to $70.03. Meanwhile, Schwab Strategic Trust Schwab Crypto Thematic ETF (NYSE:STCE), which includes Semler Scientific Inc., has experienced a 26.31% decline, from $49.59 to $36.54.

Why It Matters: Despite these setbacks, analysts see potential upside. Recent ratings suggest implied gains of 2.56% for Carlyle Group, 3.88% for Atkore, and a substantial 70.34% for Semler Scientific from current levels, according to data from Benzinga Pro.

The family investment philosophy follows Bill Miller III’s legacy of contrarian value investing. The senior Miller, famous for beating the S&P 500 for 15 consecutive years at Legg Mason Value Trust, remains a vocal Bitcoin (CRYPTO: BTC) advocate, calling it “an insurance policy against financial catastrophe.”

Miller Value Partners currently manages approximately $290 million in assets through its Miller Income mutual fund and two ETFs.

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