Legg Mason’s 130/30 Offering Off To Strong Start

Jun 13 2007 | 9:35am ET

Asset management firm Legg Mason Inc. is the latest to enter the 130/30 space. The firm’s affiliate, Batterymarch Financial Management, in January launched its 130/30 US Large Cap Equity strategy, which beat its benchmark in the first quarter.

Year-to-date through May, the strategy is up 13.5%, beating the Russell 1000, which is up 9.3%.

Batterymarch’s latest offering employs a proprietary stock selection model, which ranks 3,000 liquid stocks across six criteria—cash flow, earnings growth, expectations, value, technical and corporate signals—according to firm documents. The strategy holds on average 150 to 175 longs and 100 to 130 shorts. It is targeting returns of benchmark plus 350 basis points.

Batterymarch manages discretionary domestic equity portfolios for institutional clients. The firm currently managed some $25 billion in assets.


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