Legg Mason Misses Bottom Line; Shares off Slightly (LM)

Legg Mason Inc. LM reports Q1 earnings of $0.30 versus estimates of $0.31. Legg Mason Inc. reports Q1 revenues of $674.20 versus estimates of $651.60 million. In the quarter, Legg Mason raised $1.3 billion through a closed-end fund launch, the largest in the industry since 2007. Assets Under Management ("AUM") were $645.4 billion, down 6% as compared with $684.5 billion as of March 31, 2010 and down 2% from $656.9 billion as of June 30, 2009. Mark R. Fetting, Chairman and CEO, said, "We delivered a solid quarter in a volatile market with more work to do to fully position Legg Mason for future growth. We are pleased to announce our first quarter of equity inflows in over four years, including the largest closed-end fund capital raise in the industry since 2007. In fixed income, we are hard at work on the longer term process of turning flows to positive following sustained improved investment performance.” He added, “We believe that Western Asset's improved performance is a testament to both the strength of their investment process and the enhancements they made in integrating their risk management efforts with that process. Over the short term, market volatility has led to swings in equity performance, but our affiliates are positioning well for improvement in client results. Our overall 3- and 5-year performance numbers show improvement over the past year, and we are working in partnership with our affiliates to create investment vehicles that will bring clients back into the market and help them rebuild wealth. Shares of LM are lower in the after-hours by 1.10%. Legg Mason, Inc. is a holding company. Legg Mason is a global asset management company. Acting through its subsidiaries, the company provides investment management and related services to institutional and individual clients, company-sponsored mutual funds and other pooled investment vehicles.