Miller warns on oil as US mega caps neglected

Legg Mason's US equity veteran Bill Miller said US large caps have become "an empty stadium" as investors flock to the "overvalued" commodities sector.

The manager of the firm’s £5bn Value Equity strategy warned although energy prices are soaring, there is little value in the underlying assets. “The mega-cap trade was crowded in 1999. It appears to be an empty stadium now as everyone is crowded into the energy, commodity and small- and mid-cap arenas,” he said. He said commodity investors risked destroying value by speculating how much higher prices can go, and whether they had reached a level that fully reflects concerns about supply. “I certainly do not know, but neither do they. What I do know is there is a lot of price in th...