Jan 16 Asset manager Legg Mason Inc said
on Wednesday it will merge its Legg Mason Capital Management
(LMCM) unit, the longtime home of well-known fund manager Bill
Miller, with the company's ClearBridge Investments unit.
Miller, who famously beat the S&P 500 index for 15 years,
last year gave up the management of his best-known fund, Value
Trust, after a string of sub-par results. LMCM's Baltimore-based
team will continue to be led by Sam Peters.
Legg Mason spokeswoman Mary Athridge said there will be
layoffs stemming from the merger but declined to give more
details. Executives were not available to be interviewed, she
The reorganization is the latest change at Legg Mason, the
fourth-largest publicly-traded U.S. asset manager. The company
has been searching for a new chief executive since Mark Fetting
stepped down from the post in October, and it has struggled to
turn around outflows from many of its largest funds.
Last week, Reuters reported that the company had been
approached by senior managers and private equity firms with
plans to take it private, but its board decided against
exploring that option at least until its CEO search is
Legg Mason reported assets of $648 billion at Dec. 31. The
majority of its assets are at its Western Asset Management bond
division, with $459 billion under management in September.
ClearBridge ranked second with $59 billion at the time. LMCM had
$7 billion under management at the end of September.
Peters and his team will now become part of ClearBridge,
reporting to its co-chief investment officers Scott Glasser and
Hersh Cohen, Athridge said.
Miller will not be joining ClearBridge. He will stay with
LMM, an entity established with Legg Mason in 1999, and will
continue to run the LMCM Opportunity Trust fund, which has about
$1 billion in assets, Athridge said.