Bill Miller IV’s Miller Value Partners saw some significant losses in its fourth-quarter 2024 portfolio additions. This isn’t entirely surprising given the market uncertainty that has plagued investors recently. The firm added three stocks: Carlyle Group Inc. (CG), Atkore Inc. (ATKR), and Semler Scientific Inc. (SMLR). Since the additions, these stocks have experienced considerable declines, raising questions about the firm’s investment strategy in the current climate.
Carlyle Group, with a 25.07% drop, saw a significant loss of $908,600 on its 70,000-share position. CEO Harvey Schwartz recently highlighted policy uncertainty as a major headwind, a sentiment echoed by many in the business community. Meanwhile, Atkore Inc., down 11.04%, experienced a $296,370 loss on 37,000 shares. This decline comes amidst a reported $121-162 million impairment charge and a pending securities lawsuit alleging price-fixing.
Semler Scientific Inc. suffered the most significant setback, plummeting 30.66% for a loss of $651,990 on 43,000 shares. The stock’s overall decline of over 52% since December has even prompted an investigation by Kaskela Law on behalf of long-term investors. These losses aren’t isolated incidents; the ETFs holding these stocks also experienced notable declines, suggesting broader market trends are at play.
The Dimensional ETF Trust Dimensional U.S. Core Equity 2 ETF (DFAC), which holds Carlyle Group stock, dropped 10.62%. The First Trust RBA American Industrial Renaissance ETF (AIRR), which includes Atkore, fell 9.28%, while the Schwab Strategic Trust Schwab Crypto Thematic ETF (STCE), holding Semler Scientific, experienced a significant 26.31% decline. This paints a picture of a challenging market environment impacting various sectors.
Despite these short-term setbacks, there’s a glimmer of hope. Analyst ratings suggest potential upside for these companies, with implied gains ranging from 2.56% for Carlyle Group to a substantial 70.34% for Semler Scientific, according to Benzinga Pro data. This highlights the inherent risk and reward in the market and the importance of long-term investment strategies.
The Miller Value Partners’ investment philosophy, rooted in contrarian value investing, reflects the legacy of Bill Miller III. The senior Miller’s track record and his outspoken advocacy for Bitcoin as a hedge against financial catastrophe offer a unique perspective on the current market conditions. Miller Value Partners currently manages approximately $290 million in assets, a testament to their continued presence in the investment landscape.
While the recent performance of Miller Value Partners’ fourth-quarter additions is undeniably concerning, it’s crucial to remember that market volatility is a constant. The long-term outlook for these companies and the overall investment strategy remains to be seen. The narrative of this story is far from over.
