JXN - Miller Value Partners Income Strategy Q1 2024 Letter
2024-04-11 11:35:00 ET
Summary
- Miller Value Partners is a value investor. It values businesses, and not just stocks, and invests in them for the long term.
- The Miller Income Strategy returned 11.69% (net of fees) in the first calendar quarter of 2024.
- With many valuations appearing frothy in the current environment, we can concentrate in idiosyncratic and deeply discounted value ideas.
Staying Flexible and Concentrated in a Time of Froth
The Miller Income Strategy ( LMCJX ) returned 11.69% (net of fees) in the first calendar quarter of 2024, while the benchmark ICE BofA US High Yield Index returned 1.52%. Risk performed well in the credit market, with CCC-rated bonds outperforming B-rated bonds, which outperformed the even safer BB-rated bonds. High yield did better than investment grade credit, which outperformed the aggregate core bond ETF’s ( AGG ) -0.74% pullback. Inflation expectations popped again, with the bond market now expecting 2.7% annually over the next two years, up from 2.0% at the beginning of the quarter. Mortgage rates and commodities found some footing and ended the quarter higher. The continued economic momentum helped fuel the S&P 500’s 10.56% total return with remarkable breadth across industry groups. This strength is not lost on our benchmark, which ended the quarter near multi-decade lows on the extra yield it provides over risk-free rates....
Miller Value Partners Income Strategy Q1 2024 Letter