Brian Posner, a well-known former manager at Fidelity Investments, has been selected to head the stock-mutual fund group that Legg Mason will acquire as a result of its asset swap with Citigroup, The Wall Street Journal reports.

Posner left Fidelity in 1996, and since then has been managing a hedge fund. Legg Mason has named him CEO of the new $112 billion unit.

These are the latest actions resulting from Legg Mason's agreement in June to switch its brokerage operations in return for Citigroup's $437 billion beleaguered asset management unit.

"We have tremendous respect for [Brian's] investment ability and his investment background," said Raymond "Chip" Mason, chairman of the firm.

With this move, Legg Mason will move up the financial ranks to become the fifth-largest money management firm in the world.

The Journal reported that the deal could be sealed as early as Nov. 1 and that as soon as it is, Legg Mason's assets will reach a whopping $830 billion.

Posner told The Journal that his first priority upon starting with the firm will be helping with the transition of the stock-fund group from being a part of a firm where money management was once only a small parcel and has now become the greater of the whole.

"I've always had respect for these guys," said Posner of Legg Mason.

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