Legg Mason (NYSE:LM) Equity Flow to Remain Low

Citing several factors, Ticonderoga Securities said they see no catalyst to suggest Legg Mason (NYSE:LM) will participate in an equity flow recovery.

Ticonderoga said, "This was not a good month for flow. LM has 74% of AUM in fixed income and liquidity, the highest in the industry second to Federated (FII, $25.76, NR). With performance relatively weak in equities and long-term performance concerns at Clearbridge and LM Capital and likely capacity constraints at Royce, we have a hard time playing LM for an equity flow recovery."

Ticonderoga maintains a "Sell" on Legg Mason, which closed Friday at $35.14, down $0.78, or 2.17 percent. They have a price target of $27 on them.