Legg Mason Falls Most in Five Months After Reporting Net Lossby
Money manager's stock declines as much as 6.8 percent
Company posted a $138.6 million loss for fiscal third quarter
Legg Mason Inc. fell the most in five months after reporting a loss for its fiscal third quarter.
Shares of the Baltimore-based money manager declined as much as 6.8 percent, the most since Aug. 24, after the company said it had a net loss of $138.6 million in the three months through December, compared with a profit of $77 million a year earlier.
Earnings were reduced by an impairment charge of $371 million related to its Permal hedge fund business, which the company on Friday said would be merged with EnTrust Capital, a New York-based hedge fund investor with $12 billion under management, into a new business called EnTrustPermal.
The shares traded 5.2 percent lower at $30.11 by 9:57 a.m. in New York.