Bill Miller, manager of Legg Mason Value Trust, said in a letter to shareholders that his fund's poor performance was due to its investment in internet websites, the managed care industry and in homebuilders.

The Value Trust lost 5.7% compared to the market's fall of 1.4% for the quarter ending June 30, Miller said in the letter. In the last 15 years, the fund's average annual rate of return has been 15%, beating the S&P 500's 10.7%. In the three months ended June 30, Miller said the $18bn (€14.1bn) Value Trust Fund lost 5.7%, largely due to investments in Amazon.com, Yahoo, UnitedHealth, Aetna and "certain home builders."