Legg Mason: Enormous Share Buyback And Normalizing Rates Fuel 65% Upside
Convex Strategies • 14 Comments
Convex Strategies • 14 Comments
Oct. 30, 2014, 5:30 PM
Oct. 28, 2014, 8:47 AM
- "This appointment is in recognition of the strong business results and momentum achieved by Legg Mason (NYSE:LM)," says the company board, announcing the selection of CEO Joe Sullivan as Chairman of the Board.
- He replaces, effective immediately, Dennis Kass who has been chairman for just a little over a year. Kass remains on the board.
Oct. 10, 2014, 8:57 AM
- Legg Mason's (NYSE:LM) fixed-income AUM of $360.4B at the end of September compares to $366.7B one quarter earlier, though fixed income inflows during September were roughly $800M.
- Total AUM of $707.8B rises from $704.3B a quarter earlier.
Sep. 24, 2014, 12:37 PM
- While the probe into whether Pimco juiced the returns of its Total Return ETF highlights the boosted regulatory scrutiny the entire asset management industry faces, it nevertheless offers an opportunity for Pimco's rivals to pick up market share, says Citi's William Katz.
- "First order beneficiaries," says Katz, are BlackRock (BLK +0.6%), AllianceBernstein (AB -0.3%), and Legg Mason (LM -0.1%), followed by Franklin Resources (BEN +0.7%) and Invesco (IVZ). He's quick to point out the gains should be marginal and general industry pressure on fixed income likely looms more important. One who should escape heightened regulatory oversight is WisdomTree (WETF +0.2%) thanks to its minor fixed income business.
Jul. 31, 2014, 7:00 AM
- Legg Mason (NYSE:LM): FQ1 EPS of $0.91 beats by $0.35.
- Revenue of $693.9M (+3.5% Y/Y) misses by $10.5M.
Jul. 25, 2014, 7:41 AM
- Legg Mason (NYSE:LM) yesterday announced the purchase of U.K.-based active equity specialist Martin Currie, with the deal expected to be slightly accretive to earnings and close in Q4.
- For Legg Mason, says Wells (which has an Outperform on the stock), the deal enables it to gain a foothold in international equity while allowing Martin Currie to build off the U.S. money manager's retail channel.
Jun. 4, 2014, 7:19 AM
- Legg Mason Investment Counsel & Trust (LM) provides customized investment advisory and trust services to individuals and institutions, and has more than $9B in AUM. It will be integrated into Stifel's (SF) Global Wealth Management segment.
- Terms of the deal weren't announced and it's expected to close this fall.
- Legg Mason chief Joseph Sullivan: "This transaction continues to evolve our investment affiliate lineup toward fewer and larger firms that can be better leveraged through our global distribution platform."
- LM +7% premarket
May 1, 2014, 8:06 AM| May 1, 2014, 8:06 AM
May 1, 2014, 7:20 AM
- Legg Mason (LM): FQ4 EPS of $0.86 beats by $0.28.
- Revenue of $681.4M (+2.0% Y/Y) misses by $12.2M.
Apr. 29, 2014, 3:08 PM
- Legg Mason Inc. (LM) declares $0.16/share quarterly dividend, 23.0% increase from prior dividend of $0.13.
- Forward yield 1.37%
- Payable July 14; for shareholders of record June 17; ex-div June 13.
Mar. 26, 2014, 10:29 AM
- In a nice win for money-market fund providers like BlackRock (BLK +1.2%), Federated Investors (FII +4.3%), Invesco (IVZ +0.8%), Legg Mason (LM +2.5%), and Schwab (SCHW +1.1%), there's been a change of heart at the SEC regarding floating asset values.
- The WSJ's Andrew Ackman reports the commission will exempt a majority of funds from a rule requiring them to abandon their $1 share price and float in value like any other mutual fund. Supporters of the rule argue the float would get investors used to their funds "breaking the buck," and thus prevent panicky withdrawals in a crisis. The fund companies have fought hard against the proposal.
- It's also a blow to other regulators, including the Fed, who wanted to expand the floating value idea to more funds, including those catering to retail investors.
- Citi's William Katz on the report: "We believe the trust accounts and non-trading desk liquidity instruments might also get exempt, leaving loosely about $20B in AUM exposure to deeper reform risk. We believe such AUM is far lower than ~15% short interest currently bakes in, setting the stage for a significant short squeeze."
Mar. 4, 2014, 9:25 AM
- Looking to boost its fortunes amid years of net redemptions from its funds, Legg Mason (LM) agrees to the purchase of global quantitative equity firm QS Investors. Based in New York, QS has $4.1B in AUM and nearly $100B in assets under advisory.
- Legg Mason's existing quantitative platform - Batterymarch Financial Management and Legg Mason Global Asset Allocation - will be integrated over time into QS.
- The deal is expected to close in FQ1 of fiscal 2015 and should be modestly accretive in year one. The company expects to incur restructuring and transition costs of about $35M. Terms of the deal were not disclosed.
Feb. 10, 2014, 11:00 AM
- American Express (AXP +0.8%) is upgraded to Overweight from Equal weight at Morgan Stanley
- Apollo Global (APO +1.9%) is upgraded to Buy from Neutral at Citi.
- California United Bancorp (CUNB -0.8%) is upgraded to Outperform at RayJay.
- Cape Bancorp (CBNJ +0.9%) is upgraded to Buy at Sandler O'Neill.
- Fifth Third (FITB +0.6%) is upgraded to Positive from Neutral at Susquehanna.
- JPMorgan (JPM) is upgraded to Buy from Hold at SocGen.
- Legg Mason (LM +0.7%) is upgraded to Outperform from Market Perform at KBW.
- Zions Bancorp (ZION +1.6%) is upgraded to Outperform from Sector Perform at RBC Capital.
Jan. 31, 2014, 12:35 PM
- Reiterating their Underperform rating on Legg Mason (LM -2%), analysts David Chiaverini and Richard Fellinger, give the company kudos for improved long-term inflows, but reminds they were still flat on the quarter, negative on the year, and weaker than industry peers.
- "Legg Mason is not as well positioned as peers to capture flows in an equity rotation scenario or rising interest rate environment," they write.
- "While management remains focused on addressing its products gaps, including the recent hire of Thomas Hoops as head of business development, we believe it will take time before products can be developed/acquired that will meaningfully add to the flow picture.'
- Earlier earnings coverage
Jan. 31, 2014, 9:14 AM
- FQ3 adjusted income of $124.6M or $1.03 per share is up from $91.8M and $0.70 a year ago. Operating expenses of $598.4M up 4%.
- AUM of $679.5B up 5% Y/Y with higher markets contributing $13.6B of the increase. Fixed income inflows of $700M, equity outflows of $700M, liquidity inflows of $9.9B.
- Percent of long-term U.S. funds beating Lipper category average was just 36% on a one-year basis, rising to 68% on a 10-year.
- LM +1.6% premarket
Jan. 31, 2014, 7:07 AM
- Legg Mason Inc. (LM): FQ3 EPS of $1.03 beats by $0.08.
- Revenue of $720.1M (+6.9% Y/Y) misses by $5.75M.
Legg Mason, Inc. is a global asset management company, which provides investment management and related services to institutional and individual clients, company sponsored mutual funds and other pooled investment vehicles through financial intermediaries. The company's investment products... More
Industry: Asset Management
Country: United States
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