Legg Mason loses more than $250 million in fiscal 4Q

Clients withdrew $24 billion from their stock and bond funds during the fourth quarter. Investments under management contracted also because many of the stocks and bonds in the company's funds lost value, Legg Mason said.

"This past quarter was among the most difficult we have ever faced and we are disappointed with our results," Chief Executive Mark R. Fetting said in a statement.

For fiscal 2008, profit was $267.6 million, or $1.86 per share, compared with profit of $646.8 million, or $4.48 per share, in fiscal 2007.