Bill Miller's Legg Mason Opportunity Trust emerged as the biggest-gaining US stock fund in the second quarter, Bloomberg reports. The fund surged 48 percent during the quarter. On average, domestic equity funds rose an average of 19 percent from March 31 through June 29. That's their biggest quarterly gain in nearly 10 years.

Speaking to the Wall Street Journal about Opportunity Trust and Legg Mason Value Trust, Miller said: "Both funds are tilted towards (economic) stabilization and recovery, that benefits them."

Miller, who boasts over 28 years of investment industry experience, saw his Opportunity fund as well as his Legg Mason Value fund get hammered through 2007 and 2008. While the broader market fell by roughly 32 percent in this timeframe, the Value fund plunged 58 percent and the Opportunity fund lost 66 percent.

With the help of the recent rebound in the second quarter this year the Value Fund, a large cap value fund, was up 14.5 percent for the year ending Thursday according to data from Morningstar. The Opportunity fund, a mid-cap growth fund currently heavy on telecommunications and financials holdings, was up 31 percent for the year.

The WSJ singled out a few bad bets last summer as catalysts for Miller’s funds’ meltdown—namely, Miller raised stakes in Freddie Mac shortly before the mortgage giant’s government takeover. Miller also failed to hedge his Opportunity Trust fund last fall, despite his ability to use derivatives in the portfolio. 

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