The 20 Rising Stars of Mutual Funds 2008 - (Page 21) “[DAVID BERRY] WAS A GOOD ROLE MODEL, WAS EXTREMELY SMART AND REALLY TAUGHT ME HOW TO FOCUS ON THE DETAILS.” —JEFFREY MILLER In 2007, Miller became president of American Independence Capital Management (AICM), a sub-advisor to the American Independence Stock Fund and the Financial Services Fund, both of which he oversees. Each has been outperforming its benchmark and, in the case of the Financial Services Fund, is among the top funds in its sector in the U.S. Last year, he helped to form AICM, a subsidiary of American Independence Financial Services, after serving as co-chief investment officer of Miller & Jacobs Capital, a firm he co-founded in 1997. AICM has $112 million in assets under management. “My biggest accomplishment is re-directing the firm,” Miller said, adding that he emphasizes value investing. He said he really enjoys managing the value fund because he gets to constantly learn about new companies. “In 10 years, I see myself still managing those funds,” he added. “I don’t see myself doing anything different.” The company Miller admires, in terms of high returns on capital, is Lazard Freres, but a good model to emulate overall is Fidelity Investments’ Magellan Fund under Peter Lynch. Miller said, in the next decade, he sees the industry focusing on retirement wealth building. He does not, however, see it consolidating into five or six jumbo firms because the best performance will still be driven by some of the smaller firms, he noted, adding that firms such as Oaktree Capital Management offer “excellent value to investors.” Miller got into the mutual fund business because he liked following stocks, using money he made through summer jobs to make his first investments. He said Berry, who lost his life on 9/11, was his best boss. “He was a good role model, was extremely smart and really taught me how to focus on the details,” he added. 16. SANDY RUFENACHT Chief Investment Officer and Principal Owner Three Peaks Capital Management, Greenwood Village, Colo. Age: 42 Education: University of Northern Colorado (B.B.A.) Mentors: Thomas Bailey, Founder, Janus Capital Group; Jim Craig, Former Chief Investment Officer and Director of Research, Janus Capital Group; Thomas Marsico, Founder, CEO and Chief Investment Officer, Marsico Capital Management Prior to founding Three Peaks in 2003, Rufenacht managed or co-managed multiple fixed-income products at Denver-based Janus Capital for more than 10 years. Prior to his time at Janus, he spent two years at Colonial Investments in Boston as a fund accounting supervisor. From 1990 to 1991, Rufenacht was a senior fund accountant for the Janus Flexible Income Fund and the Janus Twenty Fund. In 1991, he moved on to become a fixed-income trader/analyst for four years before being named an assistant portfolio manager for Janus Flexible Income Fund in 1995. In 1996, he became assistant portfolio manager of the Janus High-Yield Fund and began managing the Janus Intermediate Government Securities and Janus Short-Term Bond funds. In June of 1996, he became co-manager of 16 . SANDY RUFENACHT the flexible income and high-yield funds and was later named portfolio manager and executive v.p. of the latter fund. In 1998, he launched and managed the Janus World High-Yield Fund. Rufenacht said he became interested in the stock market while in college and described his biggest accomplishment as being named a portfolio manager by Thomas Bailey. “Every day you have challenges as a portfolio manager,” he said. “You’re being paid to manage the fund and to manage it wisely.” Rufenacht, however, credits his father, Sandy Rufenacht, Sr., with being his best boss because he was tough on him while raising him. “I’d still like to think that he is my boss,” he added. Over the next decade, Rufenacht said he “can’t see doing any job other than being a portfolio manager of a high-yield product.” He believes that is the direction the industry is shifting, in part due to regulatory pressures. “The high yield market will become a bigger market than it is today,” he added. “From a regulatory perspective, it’s easier to issue high-yield bonds.” JANUARY 2008 MUTUAL FUND RISING STARS 21
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