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Legg Mason Capital Management, Inc.

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Overview

Founded in 1982 as a wholly owned subsidiary of Legg Mason, Inc., Legg Mason Capital Management, Inc. ("Legg Mason Capital Management"), is a specialist in the management of US equities. Based in Baltimore, Maryland, Legg Mason Capital Management is well-known for its distinctive value approach to investing - the firm follows a value-driven, research-intensive investment process that focuses on assessing the intrinsic business value of each company. In this way it seeks to buy stocks at significant discounts to what its research indicates the businesses are worth.

Bill Miller is chairman and chief investment officer of Legg Mason Capital Management and leads a highly experienced investment team consisting of nearly 50 investment professionals.

Philosophy

Legg Mason Capital Management assess a company's expected value by employing multiple valuation methodologies combined with rigorous business analysis, concentrating on a company's ability to generate excess cash flow, earn high returns on capital, and allocate capital efficiently. Legg Mason Capital Management's portfolio strategy includes remaining fully invested (with no attempt made to time the market), maintaining a low turnover and constructing a focused portfolio.

Legg Mason Capital Management's investment philosophy involves some of the following key principles:

  • The value of a company is based on the sum of the present value of its future free cash flows. The intelligent generation and use of cash by companies, not accounting profits, creates shareholder value.
  • Although markets broadly reflect company values, mis-pricings occur. Legg Mason Capital Management views the market as a complex environment that is broadly efficient. Markets generally reflect company values, and prices quickly adjust to reflect new information. Occasionally, however, this efficiency breaks down and mis-pricings of company stock prices occur. Legg Mason Capital Management attempts to identify and exploit these mis-pricings.
  • Managing risk of a fund's portfolio. Legg Mason Capital Management manages risk by constructing a portfolio of securities with the highest probability of delivering excess returns under a range of diverse economic and stock market scenarios.

    • When evaluating a company, Legg Mason Capital Management analyses three key factors: a company's competitive strategy; its financial and managerial history; and its valuation. Taking the first factor as an example, an understanding of a company's competitive strategy helps Legg Mason Capital Management to understand whether the company's position in the marketplace will translate into high and sustainable "returns on invested capital" (ROIC), which the firm believes is the hallmark of a good business.

     

    Funds Available Through Legg Mason Canada


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    Legg Mason Capital Management, Inc. Canadian Domiciled Funds

     

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    Legg Mason Capital Management, Inc. Non-Canadian Domiciled Funds

    • Legg Mason Capital Management Growth Fund
    • Legg Mason Capital Management Opportunity Fund
    • Legg Mason Capital Management Value Fund
     
     

    Contact Information






    Legg Mason Capital Management, Inc.
    100 Light Street
    Baltimore, MD 21202


     
    Legg Mason Canada can serve as your conduit to its highly respected family of affiliated Investment Advisers. For additional information, please contact us:

    David Gregoire, CFA, CFP

    Managing Director & Head of Distribution
    Legg Mason Canada Inc.
    Tel: 416 594 2979
    Email