Google (GOOG) Flirting With Its 52-Week Low And Bill Miller Has Mud On His Face

September 8, 2008 1:58 PM EDT

Google (Nasdaq: GOOG) is down over 5% today or $25.31 to $418.90, flirting with its 52-week low of $412.11. After Google reported poor quarterly results, Google recently recovered over the $500 level, reaching $510 on August 15th, and since that time GOOG has done nothing but drop.

There is no clear reason why Google is selling off so much today, but one could speculate that a couple of large funds could be liquidating positions in Google. These funds may be concerned as the economy weakens, online advertising will soon show dramatic declines as well. Or, the funds may need to liquidate their Google holdings to shore up other positions.

Another theory that Henry Blodget conjured up on AlleyInsider is that once invincible money manager, Legg Mason's Bill Miller, is being forced to trim his positions. Bill Miller is known for consistently beating the S&P, but the past couple years have just been horrible for him. In recent quarters, Miller has increased his position in Freddie Mac (NYSE: FRE), which obviously further hurt Legg Mason's returns.

As investors are selling their stakes in the funds Bill Miller manages, Legg Mason is likely increasing its cash position and selling part of its large position in Google, which could be one of the reasons why there was significant drop in the stock today.

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