Unit run by Legg Mason's Miller sold banks in Q2

The Legg Mason Inc unit run by star fund manager Bill Miller sold off a number of financial stocks in the second quarter, filings on Friday showed.

Miller had praised financial stocks in an investment commentary in July as likely candidates to lead a market comeback. Filings from Legg Mason Capital Management, where Miller is chairman and chief investment officer, indeed show he grew its stake in Bank of America Corp to 11.8 million shares as of June 30 from just 130,497 shares at the end of the first quarter.

But the filings also show Miller's division, a unit of Legg Mason Inc, sold shares in a number of other banks and financial companies in the three months ended June 30. These include JPMorgan Chase & Co , where the Legg Mason unit held 5.8 million shares on June 30 from 6.5 million shares on March 31; State Street Corp , down to 6.6 million shares from 7.9 million during the same period; and Wells Fargo & Co , down to 10.1 million shares from 10.6 million shares.

Among its top holdings, Legg Mason Capital Management also sold shares in insurers Aetna Inc , to 16.9 million shares from 20.9 million, and in utility AES Corp , to 68 million shares from 80.6 million shares.

The filing covers all funds run by Legg Mason Capital Management, including the one most closely identified with Miller, Legg Mason Value Trust.

(Reporting by Ross Kerber; editing by Andre Grenon)