(Corrects headline and first paragraph to show that LMCM is a unit of Legg Mason)
Jan 16 (Reuters) - Asset manager Legg Mason Inc said its Legg Mason Capital Management (LMCM) unit, the long-time home of well-known fund manager Bill Miller, will merge with the company's ClearBridge Investments unit.
Miller, who famously beat the S&P 500 for 15 years, last year gave up the management of his best-known fund, LMCM Value Trust fund, after a string of sub-par results.
Miller, who joined Legg Mason in 1981, will stay with LMM, an entity that he co-owns with Legg Mason, and will manage the LMCM Opportunity Trust fund, the company said.
LMCM's Baltimore-based team will continue to be led by Sam Peters, who took charge of the LMCM Value Trust fund in May 2012.
Legg Mason shares closed at $26.90 on Tuesday on the New York Stock Exchange. (Reporting by Ross Kerber in Boston and Aman Shah in Bangalore; Editing by Supriya Kurane)