Money and Monetary Policy

Legg Mason Inc. reported Thursday its quarterly profit grew 51 percent, thanks to a strategy that has diversified the money manager's investment portfolio.

The Baltimore-based company said it earned $72.2 million, or 61 cents per share, in the three months ended June 30, compared with $47.8 million, or 38 cents per share, a year earlier. Revenue for the quarter rose 4 percent to $693.9 million.

While Legg Mason announced in May it had reversed a six-year outflow of client money, the recent quarter brought a net outflow of $8.2 billion, nearly all from liquid investments such as money market funds.

Assets under management continued to rise during the recent quarter to...