Legg Mason
| Company type | Public (before acquisition) |
|---|---|
| Industry | Investment management, Asset management |
| Founded | 1899 |
| Founder | George Mackubin (original firm) |
| Defunct | July 2020 |
| Fate | Acquired by Franklin Templeton Investments |
| Headquarters | Baltimore , United States |
Area served | Worldwide |
Key people | Raymond A. Mason (former chairman and CEO), Mark R. Fetting (former CEO), Joseph A. Sullivan (former CEO) |
| Products | Investment management, Asset management |
Number of employees | Over 400 (by 1970) |
| Parent | Franklin Templeton Investments |
Legg Mason, Inc. was a U.S.-based firm specializing in investment management and asset management, with its headquarters located in Baltimore. Established in 1899, it became part of Franklin Templeton Investments following an acquisition completed in July 2020. As of December 31, 2019, the company oversaw $730.8 billion in assets, comprising $161.2 billion in equities, $420.2 billion in fixed income, $74.3 billion in alternative investments, and $75.1 billion in liquidity assets.
History
Originating as George Mackubin & Co. in Baltimore in 1899, the organization expanded through various mergers and acquisitions over the decades. By 1970, it maintained offices in San Francisco, New York, and Maryland with a workforce exceeding 400 employees, focusing primarily on life and casualty insurance markets. Following Mackubin’s exit in 1949, John C. Legg Jr. rebranded the firm as Legg & Co.
In a separate development, Mason & Co., a stock brokerage founded by Raymond A. “Chip” Mason in Virginia in 1962, grew to more than 80 staff members by 1967. The merger of Legg & Co. with Mason & Co. occurred in 1970, resulting in Legg Mason & Co., Inc., which was headquartered in Baltimore.
Legg Mason broadened its securities operations through a 1973 merger with Wood Walker, a New York brokerage established in 1869. Raymond A. Mason assumed the roles of chairman and CEO two years later, in 1975.
The launch of Legg Mason Fund Adviser, Inc. took place in 1982 to oversee its flagship fund, the Legg Mason Value Trust. The company went public on the New York Stock Exchange a year later, securing $14 million through its initial offering.
During the 1980s, Legg Mason pursued growth via acquisitions such as A.E. Masten & Co. from Pennsylvania, Howard Weil Financial Corp based in Louisiana (1985), and Warren York Inc. (1986). The corporate headquarters relocated to Baltimore’s 100 Light Street building in 1997.
In July 2002, the firm divested its brokerage division to Raymond James Financial. A major acquisition from Citigroup’s asset management segment occurred in 2005 for $3.7 billion, elevating Legg Mason to the position of the fifth-largest money manager within the United States.
Bill Miller’s renowned record of surpassing the S&P 500 concluded in 2006. Amidst the Great Recession, Mark R. Fetting replaced Raymond Mason as CEO in January 2008 when the company experienced its first quarterly financial loss.
The corporate headquarters moved to Inner Harbor East in Baltimore during July 2009. Nelson Peltz joined the board following his acquisition of a stake later that year in October. In May 2010, Legg Mason announced workforce reductions affecting up to 350 employees as part of restructuring initiatives.
Joseph A. Sullivan was appointed CEO in February 2013. The company further expanded its reach in 2016 by acquiring Clarion Partners, integrating its hedge fund Permal with EnTrust, and investing in Precidian Investments to strengthen its exchange traded funds platform.
To streamline expenses, all sports sponsorships were discontinued by April 2019.
The acquisition of Legg Mason by Franklin Templeton Investments for $4.5 billion was finalized in July 2020, representing a major consolidation within the asset management sector.
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