Trian Fund Management LP may wage an activist campaign at Legg Mason Inc. and push the cash supervisor to enhance its flagging outcomes, in accordance to individuals conversant in the matter.
Trian just lately has held discussions with Legg Mason administration concerning the want to minimize prices and enhance revenue margins, the individuals stated. The two sides may nonetheless negotiate a settlement that sidesteps a proxy struggle, they added.
Shares of Legg Mason
, which has about $758 billion in belongings underneath administration, have been battered in recent times because the agency struggles to navigate sweeping modifications within the investment-management panorama. The surging reputation of low-cost mutual and exchange-traded funds has pushed funding companies to slash the charges they cost shoppers. Those cuts have thinned revenue margins, prompting managers to seek for new funding merchandise and methods to shed bills.
Legg inventory, which touched a postcrisis excessive of greater than $58 in early 2015, has fallen sharply since then. The Baltimore agency now has a market worth of slightly below $three billion.
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