Bill Miller has Yahoo losses up the ying Yang....

It kinda serves him right for blowing Microsoft off: Legg Mason's Bill Miller -- Yahoo's second largest shareholder with 83.8 million shares -- was one of those fund managers who most vocally opposed Microsoft's bid for Yahoo because he felt that it grossly undervalued the shares. But after all of his bluster, he got a rather nasty and unexpected surprise when Mr. Softy pulled its bid.  And he also got some big losses as well.  Now he wants Jerry Yang to use some of Yahoo's cash to buy stock.

Monday’s selloff in Yahoo (YHOO) is creating more pain for value manager Bill Miller. Miller is chief investment officer at Legg Mason Capital Management, which at Dec. 31 was Yahoo’s second-biggest shareholder, with a 6.9% stake, according to Lionshares.com. Yahoo had been one of the standout performers in Miller’s Legg Mason Value Trust, which lost 20% of its value in the first quarter as big bets on beaten-down financial stocks such as Bear Stearns (BSC) went sour. But Monday’s 14% decline in Yahoo takes the stock about half the way back to where it was trading before Microsoft (MSFT) unveiled its $31-a-share bid on Feb. 1. Should they stick, Monday’s declines will reduce the fund’s gains in Yahoo accordingly.

Bill Miller wants Yahoo buyback - Fortuns