• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

Takeaway: We are removing Legg Mason (LM) from our high-conviction stock idea list.

Jonathan Casteleyn, co-head of Financials, explains the decision below.

We are removing shares of Legg Mason (LM) from our Investing Ideas list. The combination of a change in quantitative signal as well as the lack of forward fundamental catalysts are the reason for this change. Legg Mason stock has moved from Bullish to Bearish Trend duration during the course of this week and in combination with the company having made an acquisition announcement of Martin Currie two weeks ago, the potential to roll in new assets accretively via deal making has now been discounted in the stock.

LM: Removing Legg Mason from Investing Ideas - Legg Mason

Since adding LM to our Investing Ideas newsletter on the week of March 25th, shares have appreciated by 3.0% versus the Asset Management Group return of -1.0%. Thus the combination of this excess return and also the stock starting to change quantitative signals as well as now a lack of fundamental catalysts, lead us to remove the stock from our Investing Ideas newsletter.