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Article: Building a More Balanced Brokerage; Legg Mason Is Turning to Asset Management to Stabilize Revenue
- Article from:
- The Washington Post
- Article date:
- October 28, 2002
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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If Raymond A. "Chip" Mason wanted to demonstrate the power of
diversification to a novice investor, he might point to the
performance of one of his company's mutual funds -- or he might point
to his own company.
Legg Mason Inc., once known mainly for its brokerage and
investment banking services, has worked to sever its financial
dependence on those notoriously cyclical businesses and has instead
fueled more reliable revenue growth by acquiring a series of asset
managers. As a result, the proportion of Legg Mason's total revenue
coming from fees for managing clients' money more than doubled over
the past decade to 54 percent this year, and the firm is one of the
most steadily profitable ...