Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, investment manager Legg Mason (NYSE:LM) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Legg Mason's business, and see what CAPS investors are saying about the stock right now.

Legg Mason facts

Headquarters (founded)

Baltimore (1899)

Market Cap

$2.49 billion


Asset Management and Custody Banks

Trailing-12-Month Revenue

$3.81 billion


Chairman/CEO Mark Fetting

CFO Charles Daley, Jr.

Return on Capital (over last three years)


Dividend Yield



State Street (NYSE:STT)

BlackRock (NYSE:BLK)

Goldman Sachs (NYSE:GS)

CAPS members bullish on LM also bullish on


Starbucks (NASDAQ:SBUX)

CAPS members bearish on LM also bearish on

Citigroup (NYSE:C)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, 92% of the 1,081 members who have rated Legg Mason believe the stock will outperform the S&P 500 going forward. These bulls include CAPS legend floridabuilder2, who is ranked in the top 0.2% of our community, and Northville.

Two weeks ago, floridabuilder2 singled out Legg Mason as a smart way to play the "transfer of wealth from banks and taxpayers to wealth fund managers/Private Equity."

In a pitch from late February, Northville suggests why the stock has been unfairly punished:

1. Bill Miller has taken it on the chin lately and hasn't helped his cause much by making some well publicized dumb comments.

Bill Miller may be the face of Legg Mason, but he actually controls a relatively small portion of the [assets under management], the company can do fine even if the [Legg Mason Value Fund] is terminated. The public doesn't realize this.

2. [Legg Mason] has had well publicized large losses from SIV exposure (that they acquired in the Citi transaction which somehow doesn't surprise me).

[Legg Mason] has taken steps to greatly reduce their exposure to these SIVs, while at the same time making sure that it has done the right thing by it's investors so as not to damage it's brand name.

What do you think about Legg Mason, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Legg Mason and Starbucks are Motley Fool Inside Value picks. Starbucks is also a Stock Advisor selection, as is Apple. The Fool owns shares of Legg Mason and Starbucks. The Fool's disclosure policy always gets a perfect score.