Legg Mason

Legg Mason was founded in 1899 by Raymond A. Mason in Baltimore, Maryland. Initially, the firm was known as Mason and Company, focusing primarily on institutional sales and trading, as well as brokerage services for individual investors. Over the decades, the company expanded its services and market reach, evolving into a leading global asset management firm. Legg Mason developed a reputation for expertise in mutual fund management and investment advisory services, catering to a diverse clientele worldwide. The firm's founders set a strong foundation in investment principles, allowing it to grow steadily over the years.

In June 1970, Legg Mason became a publicly traded company, officially listing its shares on the American Stock Exchange. This move marked a significant milestone in the company's history, as it allowed Legg Mason to access public capital markets to fund its expansion plans. Becoming a public entity also helped to increase the firm's credibility and visibility in the financial services industry. The decision to go public was driven by the company's strong financial performance and growth prospects at the time. The listing enabled Legg Mason to broaden its shareholder base and pursue acquisition opportunities.

In 1982, Legg Mason underwent a strategic merger with Mason & Lee, a firm that specialized in research and financial analysis. This acquisition was aimed at strengthening Legg Mason's research and analytical capabilities, thereby enhancing the company's overall service offerings to its clients. The merger allowed Legg Mason to offer more comprehensive and in-depth investment research, which helped solidify its position as a leader in the asset management industry. The consolidation of resources and expertise from both firms contributed to Legg Mason's competitive advantage and growth trajectory during the 1980s.

In 1996, Bill Miller, a portfolio manager at Legg Mason, gained fame for his management of the Legg Mason Value Trust. Under Miller's leadership, the Value Trust outperformed the S&P 500 for 15 consecutive years, a remarkable achievement that brought significant attention to Legg Mason's investment strategies. Miller's value-oriented approach and stock-picking skills were central to the fund's success. The continuous outperformance of the Value Trust during this period helped cement Legg Mason's reputation as a skilled asset manager, attracting investors seeking active management and superior returns.

In October 2005, Legg Mason completed the acquisition of Citigroup's asset management business in a transformative deal valued at approximately $3.7 billion. This acquisition was a landmark event for Legg Mason, significantly increasing its assets under management and expanding its global presence. The deal included the addition of Citigroup's well-regarded fund management businesses, thereby diversifying and enhancing Legg Mason's investment offerings. This acquisition positioned Legg Mason as one of the world's largest asset management firms, showcasing its strategic ambition to compete on a global scale.

On April 29, 2009, Legg Mason reported significant financial losses due to the global financial crisis, which adversely affected its earnings and operational stability. During this period, Legg Mason faced challenges related to declines in asset values, lower management fees, and redemption pressures from investors. The firm's report highlighted the impacts of the economic downturn on its business model and the steps management was taking to address these issues. This event marked a critical point for the company as it navigated through one of the toughest economic environments, leading to restructuring efforts.

In February 2010, Legg Mason announced a major restructuring plan aimed at streamlining operations and refocusing its business strategy. The plan was developed in response to challenges following the financial crisis, addressing inefficiencies and positioning the firm for future growth. The restructuring involved changes in management, cost-cutting measures, and a renewed focus on core businesses and investment management. By refocusing on its strengths and core competencies, the firm sought to recover from financial setbacks and improve overall performance in the competitive asset management industry.

In November 2014, Legg Mason acquired QS Investors, a quantitative and multi-asset class investment management firm. This acquisition was part of Legg Mason's strategic efforts to enhance its quantitative investment capabilities and expand its product offerings in the multi-asset investment space. QS Investors brought advanced research and quantitative strategies to Legg Mason, providing clients with innovative investment solutions and risk management tools. The acquisition reinforced Legg Mason's commitment to diversifying its investment approaches and catering to the growing demand for sophisticated investment strategies.

In November 2016, Legg Mason expanded its investment capabilities by acquiring a majority stake in Clarion Partners, a real estate investment firm, and EnTrustPermal, an alternative asset manager. These acquisitions were designed to diversify Legg Mason's investment offerings and to strengthen its position in the alternative asset sector. Clarion Partners provided expertise in real estate investments, while EnTrustPermal enhanced Legg Mason’s capabilities in hedge fund and alternative strategies, aligning with the company's strategy to offer a broad range of investment solutions to its clients.

On July 31, 2020, Franklin Templeton successfully completed its acquisition of Legg Mason in a deal valued at approximately $4.5 billion. This acquisition combined two of the asset management industry’s well-known entities, aiming to create a more diversified and global company with enhanced product offerings. The merger was intended to leverage both firms' strengths, broaden their investment capabilities, and improve efficiencies through integration. The deal meant that Legg Mason's subsidiaries would continue to operate under Franklin Templeton’s umbrella, ensuring continuity of services to clients.