Convex Strategies

Legg Mason: Enormous Share Buyback And Normalizing Rates Fuel 65% Upside

Legg Mason (NYSE:LM) is a leading asset management firm with AUM of $656 billion as of July. The company has a market capitalization of $4.10 billion and trades at about 86% of stated book value.

Investment Strategies And Performance

Legg Mason's major affiliate is Western Asset Management, with more than $460 billion of AUM. Western is a global fixed income investor that, net of fees, has outperformed its benchmark over every major time frame. Western was named the US Fixed Income Core Manager of the year by Institutional Investor for 2012.

On the equity side, Royce & Associates and ClearBridge Investments manage more than $100 billion combined; ClearBridge won several awards in 2012 as its large cap value...

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