Value Equity

Portfolio Managers*:

Strategy:

Value Equity is designed for investors seeking long-term capital appreciation through an investment in a concentrated portfolio of large cap securities trading at a significant discount to our assessment of their expected value. Value Equity adheres to a rigorous investment process that is focused on identifying expectations gaps, which are situations where the market’s normally efficient pricing mechanism has broken down due to behavioral influences or market uncertainty about a company’s prospects.

Investment objective: Long-term growth of capital

Inception of style: 1982

Value Equity Style Assets Under Management: $9.7 billion**

Account Minimum to Invest: $25 million

 Bill Miller January 2010 Commentary

* Bill Miller, CFA is solely responsible for developing the investment policy and process for, the security selection in, and the portfolio construction of the master Value Equity portfolio. Mary Chris Gay, Jane Trust, CFA and Timothy McGurkin, CFA are responsible for the day-to-day management of Value Equity separate and pooled accounts. They implement changes made to the master portfolio in Value Equity separate and pooled accounts, subject to client guidelines and restrictions.
** Includes Mutual Funds, Registered and Non-Registered Accounts as of 12/31/09.
*** Legg Mason Investor Services, LLC is the distributor of this fund. LMIS is a subsidiary of Legg Mason, Inc.