Article: Building a More Balanced Brokerage; Legg Mason Is Turning to Asset Management to Stabilize Revenue

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 ...

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