No video this week. We have guests and other dogs with us for the holiday.The chart is YTD for the Legg Mason Value Trust (LMVTX) versus the S&P 500.You know the fund for its very long streak of beating the S&P 500. A look at the stale holdings on Yahoo Finance shows that it makes what I think are big bets and sometimes big bets do not work out.It has United Healthcare (UNH) which has a 4.45% weight after a 41% drop. The fund is overweight financials versus SPX and it has zero in energy. Zero?This is a good example of how actively managed funds can be problematic. A contrarian might have guessed that after a long run of outperformance the fund would lag. That makes sense. But the issue that ...

has attracted a large and growing short position over the last six months. I'm not sure what they see, but so far they are fighting the trend. The short position has grown by over 10 million shares since the end of November and the average price during that time was 18.97. The average short since the end of November is now down by over $1.50. If I was short I would be very concerned. I didn't dig into the fundamentals, but the most recent quarter, revenues increased by 85% and earnings were 1.12/share versus an estimate of just 0.48 I own some call options and a little bit of stock, which I intend to add to. ...