Legg loss worse than forecast but funds stabilize

BOSTON (Reuters) - U.S. asset manager Legg Mason Inc (LM.N: ) posted a wider-than-expected quarterly loss while rival T. Rowe Price (TROW.O: ) reported a profit that met expectations. The two large money managers, both based in Baltimore, showed a marked difference in fund flows with Legg Mason again suffering sharp outflows and T. Rowe continuing to see inflows. Legg Mason, which has been dogged by the weak performance of the main fund managed by one-time star stock picker Bill Miller, is "pursuing new initiatives to deliver improved results," the company's chief executive, Mark Fetting, said in a statement, naming new products, distribution partnerships and operating efficiencies as priorities. Legg Mason shared were down 5 percent in premarket trading, while T. Rowe Price's were up 1.3 percent. Legg's results contrasted... [read full story]