According to these firms, Legg Mason is working on the streamlining effort, continuing buybacks, and has some areas of improving investment performance, given that some short-term performance is under pressure, long-term flows remain weak, assets under management (AUM) mix is concentrated and Western compensation is increasing. These firms believe that while performance has been improving, mainly at Legg Mason's Western Asset Management affiliate, flow trends remain negative. The company is working on certain streamlining initiatives designed to produce continual improvements in operating margin. Considering the continued negative flow trends and concerns associated with the success of these streamlining initiatives, these firms believe the shares have limited upside at current level.