The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Legg Mason results report churn | Its our stomach…

As fixed income loses the temporary sheen from 2008, Legg Mason bore the brunt of investor displeasure and lack of confidence losing $24 billion from fixed income schemes and close to $33 billion overall in the last quarter, 4 times more than the July – September Quarter. Most banks worldwide have reported losses in Fixed Income in the latest quarter as yields spike with China ready to go off the Charts from doubt in its banking system :lol

However that all seems to have passed as in after its results last week, news filtered in that new board member Nelson Peltz is selling an over 15% in H J Heinz ketchup worth $32 million and another $8 million in Tiffany’s Diamonds. Nelson Peltz still holds more than 4% in Heinz.

interestingly, Legg Mason’s flagship Value fund is heavily invested in healthcare, read health insurers like Humana, Wellpoint and United Health who are celebrating after Scot Brown’s victory in Massachusetts! O What a tangled web we weave. Bill Miller, the fund’s Equities star also mentions of late his trust in the growing US GDP and in Equities. While we agree with the second, Obama’s latest belt tightening measures may cloud America’s way on growing in double digits a year.

Fund Managers on Bills side in London and New York also feel more wary of heavily weighted China and India investments which we propose is heresy except that in China one must watch the for the bull entering the China Shop. And who’s invested in India? Not many more than 5 years about oversimplification!!!

Blackrock reports results tonight.

Note: From a September 09 flyer of the World #10 Asset manager, outflows of $33b would close out fixed income offerings in its entirety, leaving Bill Miller and $8 billion in equity which would be $800m, $40m seems at the top of the fair price range for 5-10%. revenues reported for the Quarter are $680 million

“Bank results Week” 2010 December Q4 ‘Bank results feed’

One comment on “Legg Mason results report churn | Its our stomach…

  1. Joseph Juniel
    February 15, 2010

    Hey, nice blog with good info. I really like coming back here often. There?s only one thing that annoys me and that is the misfunctioning of comment posting. I usually get to 500 error page, and have to do the post twice. – Don

    Don, the hosting is upgraded, but with so many coming back from atweet, it gets hot on a fresh post. You should try in a quiet moment, if you can and think a good comment so other readers can also make good use of it


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