Legg Mason (LM)

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Legg Mason, Inc. (NYSE: LM) is an asset management firm which serves the institutional, mutual fund, and wealth management markets through a variety of equity, fixed income, liquidity, and alternative investment products. With a remarkable $969 billion in assets under management (AUM) and an estimated $4 billion in annual revenues, the firm ranks 4th among the top asset managers of the world. Among large pure-play asset managers, Legg is number one in revenues and in AUM. Most of the company’s revenues are generated from its investment advisory business in the form of investment management fees, as well as underwriting and distribution fees.

[edit] History

Legg Mason, Inc. is the result of an original merger between Mason & Company and Legg & Co. in 1970. Raymond A. Mason, the current chairman, president, and chief executive officer of the company, founded Mason & Company in 1962 and Legg & Co. was founded in 1899.

Its 2005 acquisition of Citigroup's Asset Management unit in exchange for Legg's private client and capital markets business succeeded in just about doubling its asset base. Following the asset swap with Citigroup, Legg’s transformation from a diversified financial services company (including retail brokerage and investment bank) to a pure-play asset manager was complete.

[edit] Investment Units

Legg provides international and domestic investment solutions under the Western Asset Management, Legg Mason Capital Management, Private Management, Royce & Associates, Brandywine Asset Management, and Batterymarch Financial Management brands. Each of the firm’s investment management units operates under its own brand and management team.

[edit] Western Asset Management

Western Asset Management is the second largest manager of institutional U.S. fixed income assets on the global level and represents one of the Big 3, “the triumvirate”. Just 18 years after it was first acquired, Western Asset accounts for 57% of the total AUM at Legg. It currently offers over 25 products in fixed income and currency markets to over 500 institutional clients around the world. Citigroup’s fixed income and liquidity teams joined Western Asset following the December 2005 close.

[edit] Legg Mason Capital Management

Legg Mason Capital Management is one of America's leading equity managers. Since 1982, under the direction of Bill Miller, Capital Management has distinguished itself by applying the principles of value investing. This branch of Legg offers investors a total of six equity capabilities: Value Equity, Mid-Cap, All Cap, Growth Equity, Opportunity Trust, and American Leading Companies. The investment team of the Legg Mason Capital Management division provide portfolio management and equity analysis for $67.7 billion in separate account and pooled assets.

[edit] Brandywine Asset Management

The firm began operations in 1986 and has since held onto one investment approach--value investing. Founded by a group of portfolio managers, Brandywine Global offers value-based equity and fixed income products covering domestic (U.S.), international and global investment strategies. Brandywine manages over $42 billion in assets for more than 360 clients.

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