Legg loss worse than forecast but funds stabilize

BOSTON (Reuters) - Legg Mason Inc (LM.N) posted a wider-than-expected quarterly loss as investors yanked $18.4 billion from its underperforming funds and the U.S. asset manager took a charge to bail out its money market funds that are stuck with risky securities. But the No. 2 publicly traded U.S. asset manager's shares rose 3 percent, outperforming the sector, after it said its money market funds had stabilized, performance at some of its key funds had improved and it had launched a series of plans for growth. A drop in equity outflows to $11.6 billion from $17.2 billion in the fourth quarter ended March 31 also sparked confidence. "Maybe investors were reassured that there appears to be on the equity side stability in terms of the assets they are losing," said Jean-Marie Eveillard, a portfolio manager at First Eagle Funds,... [read full story]                    

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