Time may be running out on Legg name

Jan 20, 2013 @ 12:01 am

By Jason Kephart

Time may be running out for Legg Mason, at least as a mutual fund brand name. Legg Mason Capital Management — a household name in the 1990s, thanks to star manager Bill Miller's 15-year streak of beating the S&P 500 — is merging into Legg Mason Inc. subsidiary ClearBridge Advisors LLC, the company announced.

“With approximately $60 billion in assets under management, ClearBridge provides a robust business platform that will afford operating efficiencies,” Legg spokeswoman Mary Athridge said in a statement.

Ms. Athridge said the parent company will be keeping both the Legg Mason and ClearBridge brand names for now, but the situation is under evaluation. If the firm chooses to drop the Legg Mason name from its mutual funds, it won't be the first time. Western Asset Management Co. Ltd., overseen by Legg Mason Inc., dropped its parent company's name from its mutual funds last spring.

One reason the firm could have for shying away from the Legg Mason name is the brand's poor performance since Mr. Miller's famed streak was snapped. Mr. Miller's Legg Mason Capital Management Value Fund lost 36% from 2006 to 2011, almost 50 percentage points worse than the S&P 500 over that time.

Last May, Mr. Miller stepped down from day-to-day management of the fund, which had fallen to $2.5 billion in assets from a peak of $12.5 billion in 1999. The reins were handed to chief investment officer Sam Peters, but he's been unable to stage a turnaround, said Bridget Hughes, a mutual fund analyst at Morningstar Inc.

jkephart@investmentnews.com Twitter: @jasonkephart


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


Top questions surrounding future of DOL fiduciary rule

Reporter Greg Iacurci and managing editor Christina Nelson discuss the biggest uncertainties springing from the Fifth Circuit Court of Appeals' decision to vacate the regulation.

Latest news & opinion

The 401(k) robo-revolution is here

Could human advisers be displaced as digital-advice firms use technology to deliver services to plan sponsors and participants?

SEC forging ahead on fiduciary rule despite DOL rule decision in 5th Circuit

Chairman Jay Clayton says 'the sooner the better' when asked when an SEC fiduciary rule will be ready.

What the next market downturn means for small RIAs

Firms that have enjoyed AUM growth because of the runup in stocks may find it hard to adjust to declining revenues if the market suffers a major correction.

DOL fiduciary rule likely to live on despite appeals court loss

Future developments will hinge on whether the Labor Department continues the fight to remake the regulation its own way.

DOL fiduciary rule: Industry reacts to Fifth Circuit ruling

Groups on both sides of the fiduciary debate had plenty to say.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print