FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
ACT OF 1934

For the quarterly period ended 03-31-97
                                       OR
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the transition period from ________ to ___________

Commission file number: 0-26868

                      LEXINGTON GLOBAL ASSET MANAGERS, INC.

DELAWARE                                                     22-3395036
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                               Identification No.)

PARK 80 WEST PLAZA TWO
SADDLE BROOK, NJ 07663
201-845-7300

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No ____

              APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

         Indicate by check mark whether the  registrant  has filed all documents
and reports  required  to be filed by Section 12, 13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court. Yes ____ No ____
                   (APPLICABLE ONLY TO CORPORATE REGISTRANTS)
         Indicate the number of shares  outstanding of each of the  registrant's
classes of common stock, as of March 31, 1997.

                      Common Stock-$.01 Par Value Per Share
                          Authorized 15,000,000 Shares
                     5,467,887 Shares Issued and Outstanding


<PAGE>





                                          LEXINGTON GLOBAL ASSET MANAGERS, INC.
                                                               AND SUBSIDIARIES

Item I.  Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<S>                                                                      <C>                    <C> 

                                                                             3/31/97               12/31/96
                                                                           (Unaudited)            (Audited)
Assets:
Cash and cash equivalents:
   Cash                                                                   $     1,265,650     $       1,631,249
   Money market accounts                                                        6,101,537             5,898,575
                                                                         -----------------     -----------------
                                                                                7,367,187             7,529,824
                                                                         -----------------     -----------------

Receivables:
   Investment advisory and management fees                                      1,265,769             1,161,473
   Due from funds and other                                                       748,529               868,649
                                                                         -----------------     -----------------
                                                                                2,014,298             2,030,122
                                                                         -----------------     -----------------
Marketable securities                                                           1,266,913             1,205,350
Prepaid expenses                                                                1,025,301               367,159
Prepaid taxes                                                                      29,069                11,900
Furniture, equipment and leasehold improvements (net of                   
   accumulated depreciation and amortization)                                   1,493,919             1,347,324
Intangible assets (net of accumulated amortization)                               206,826               210,875
Deferred income taxes                                                           2,661,546             3,131,842
Other assets                                                                      207,716               243,120
                                                                         -----------------     -----------------
          Total assets                                                    $    16,272,775      $     16,077,516
                                                                         =================     =================

 
Liabilities:
Accounts payable and other accrued expenses                               $     3,041,586     $       3,691,326
Deferred income                                                                 1,423,912             1,197,576
Federal income taxes payable                                                    1,016,729             1,015,351
Other liabilities                                                                   2,907                 6,681
                                                                         -----------------     -----------------
          Total liabilities                                                     5,485,134             5,910,934
                                                                         -----------------     -----------------
Minority interest                                                                 357,004               344,909

Stockholders' Equity:
Common stock, $.01 par value; 15,000,000 authorized shares;                                     
   5,487,887 issued                                                                54,879                54,879
Additional paid-in capital                                                     21,501,517            21,501,517
Accumulated deficit                                                           (10,995,759)          (11,734,723)
                                                                         -----------------     -----------------
          Total paid-in capital and accumulated deficit                        10,560,637             9,821,673
Less cost of treasury stock (20,000 shares)                                       130,000                    -
                                                                         -----------------     -----------------
          Total stockholders' equity                                           10,430,637             9,821,673
                                                                         -----------------     -----------------

          Total liabilities and stockholders' equity                      $    16,272,775      $     16,077,516
                                                                         =================     =================



        The accompanying notes are an integral part of the condensed consolidated financial statements.

</TABLE>






                                          LEXINGTON GLOBAL ASSET MANAGERS, INC.
                                                               AND SUBSIDIARIES
                                                                             
 
<TABLE>
<S>                                                                          <C>                  <C> 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                              (Unaudited)

                                                                                 Three Months Ended March 31,
                                                                                 1997                  1996

Revenues:
   Investment advisory:
      Mutual fund management fees (including approximately
          $134,388 and $117,474 from related parties)                        $  2,731,467       $     2,693,518
      Mutual fund commissions                                                      18,649               145,522
      Other management fees (including approximately
         $637,773 and $548,492 from related parties)                            1,635,045             2,121,494
   Commissions income                                                              32,613               564,005
   Other income                                                                   205,591               192,761
                                                                            ----------------      ----------------
          Total revenues                                                        4,623,365             5,717,300
                                                                            ----------------      ----------------

Expenses:
   Salaries and other compensation                                              2,263,748             3,159,553
   Selling and promotional                                                        238,984               429,202
   Administrative and general                                                     846,245             1,366,558
                                                                            ----------------      ----------------
          Total expenses                                                        3,348,977             4,955,313
                                                                            ----------------      ----------------
          Income before income taxes and minority interest                      1,274,388               761,987

Provision for income  taxes
   Current                                                                         53,033               107,328
   Deferred                                                                       470,296                99,479
                                                                            ----------------      ----------------
          Total provision                                                         523,329               206,807
                                                                            ----------------      ----------------
          Income before minority interest                                         751,059               555,180
Minority interest                                                                  12,095                11,240
                                                                            ----------------      ----------------
          Net income                                                         $    738,964      $        543,940
                                                                            ================      ================

Earnings per share:
   Net income per share                                                             $0.13                 $0.10
                                                                            ================      ================

   Average shares outstanding during the period                                 5,486,776             5,487,887
                                                                            ================      ================



         The accompanying notes are an integral part of the condensed consolidated financial statements.

</TABLE>




                                          LEXINGTON GLOBAL ASSET MANAGERS, INC.
                                                               AND SUBSIDIARIES

<TABLE>
<S>                                                                        <C>                 <C> 


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                            (Unaudited)

                                                                               Three Months Ended March 31,
                                                                                1997              1996

Cash flows from operating activities:
Net income                                                                  $     738,964   $        543,940
Adjustments to reconcile net income to net cash provided
   by operating activities:
      Depreciation and amortization                                                81,230            113,093
      Unrealized (appreciation) depreciation on marketable
         securities                                                               (56,523)           (48,615)
      Deferred income taxes                                                       470,296             99,479
      Minority interest                                                            12,095             11,240
Change in assets and liabilities
      Receivables                                                                  15,824           (460,925)
      Prepaid expenses                                                           (658,142)           (66,018)
      Prepaid taxes                                                               (17,169)              (387)
      Accounts payable and accrued expenses                                      (649,740)        (1,197,300)
      Federal income taxes payable                                                  1,378            109,762
      Deferred management fees                                                    226,336             69,221
      Other, net                                                                   22,410             (3,127)
                                                                           ---------------   ----------------
Net cash provided by (used in) operating activities                               186,959           (829,637)

Cash flows from investing activities:
      Purchases of furniture, equipment and leasehold
         improvements                                                            (214,556)          (196,985)
      Purchases of marketable securities                                           (5,040)          (103,806)
                                                                           ---------------   ----------------
Net cash used in investing activities                                            (219,596)          (300,791)

Cash flows from financing activities:
      Principal payments under capital lease obligations                               -             (25,590)
      Purchase of treasury stock                                                 (130,000)                -
                                                                           ---------------   ----------------
Net cash used in financing activities                                            (130,000)           (25,590)
Net decrease in cash and cash equivalents                                        (162,637)        (1,156,018)
Cash and cash equivalents, beginning of period                                  7,529,824          5,615,017
                                                                           ---------------   ----------------
Cash and cash equivalents, end of period                                    $   7,367,187    $     4,458,999
                                                                           ===============   ================



      The accompanying notes are an integral part of the condensed consolidated financial statements.
</TABLE>


                                         LEXINGTON GLOBAL ASSET MANAGERS, INC.
                                                              AND SUBSIDIARIES



NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1.  Basis of Presentation:

     The interim financial information presented is unaudited. In the opinion of
Company  management,  all  adjustments,  (consisting  only of  normal  recurring
accruals),  necessary to present  fairly the  condensed  consolidated  financial
position and the results of  operations  for the interim  period have been made.
The  financial  statements  should  be read in  conjunction  with the  financial
statements  and related notes in the Company's  1996 Annual Report on Form 10-K.
The results of operations for the interim period  presented are not  necessarily
indicative of the results to be expected for the full year.


2.  Common Stock Buy-Back Program

     On March 7, 1997 the Board of Directors of Lexington Global Asset Managers,
Inc. authorized a share repurchase program of up to 750,000 shares.  Repurchases
will  be  made  from  time  to time in the  open  market  or  through  privately
negotiated transactions at market price. The stock repurchase plan has a term of
three years. In the first quarter of 1997, the Company repurchased 20,000 shares
of its stock at $6.50 per share.


3.  Changes in Accounting Principles

     In February 1997, the Financial Accounting Standards Board issued Statement
of Financial  Accounting Standards No. 128 (SFAS 128) "Earnings per Share" which
will be effective  commencing  with the Company's  financial  statements for the
year ended  December 31, 1997.  Upon adoption of the standard,  the Company will
present  "basic"  earnings per share and  "diluted"  earnings  per share.  Basic
earnings  per  share  excludes  dilution  and is  computed  by  dividing  income
available to common stockholders by the weighted average number of common shares
outstanding  for the period.  The  computation of diluted  earnings per share as
required under the new standard,  gives effect to all dilutive  potential common
shares that were  outstanding  during the period.  The adoption of this standard
would not have a  material  effect on the  Company's  earnings  per share  since
diluted  earnings  per share is  computed in a manner  similar to the  Company's
current computation of earnings per share.




Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations.

Management's Discussion and Analysis contained in the Company's Annual Report on
Form 10-K for December 31, 1996 is  incorporated  herein by reference and should
be read in conjunction with the following.

March 31, 1997 Compared to March 31, 1996

As  anticipated,  the Company's  results in the first quarter  reflect a smaller
more profitable  business after the sale of most of its West Coast operations in
the third  quarter  of 1996.  The  remaining  West Coast  subsidiary,  Lexington
Capital  Management,  Inc.,  was merged into  Lexington  Management  Corporation
("LMC") on December 31, 1996. The  consolidated  net income for the three months
ended  March 31,  1997 was $0.7  million,  $0.13  per  share,  compared  to $0.5
million, $0.10 per share for the first three months of 1996.

Total assets under  management  at March 31, 1997 were $3.3 billion  compared to
$3.2  billion at December  31, 1996 and $3.3  billion at March 31,  1996.  Total
revenues  of $4.6  million  are 19.3%  below the first  quarter of 1996 when the
Company recorded  revenues of $5.7 million.  The West Coast operations  recorded
$1.7  million in revenues in the first  quarter of 1996 and $0.8  million in the
first quarter of 1997.  Excluding the West Coast  operations,  total revenues of
$3.8 million are down $0.2 million or 5.0% from the first  quarter of 1996.  The
decrease is primarily  attributable  to mutual fund  commissions  which are down
over $100,000  year-to-year  reflecting  lower sales of the  Company's  precious
metals mutual fund products, two of which carry sales charges.

Net mutual fund management fees, the Company's largest revenue source, were even
with the  first  quarter  of 1996 at $2.7  million.  Mutual  fund  assets  under
management have increased during the first quarter to $1.9 billion from the year
earlier number of $1.8 billion.  However,  underlying the growth in assets under
management  is a  shift  from  some  of the  Company's  higher  priced  products
(precious  metals and  emerging  markets) to some of the lower  priced  products
(domestic equity and fixed income).

Other management fees of $1.6 million are down $0.5 million from $2.1 million in
the prior year  period.  The  disposed  West Coast  operations  account for $0.4
million  of this  decline.  Similarly,  commissions  income  declined  from $0.6
million in the first  quarter of 1996 to $33,000 in the first quarter of 1997 as
a result of the  disposal  of the West Coast  operations.  Other  income of $0.2
million  is even with the prior  year and  primarily  reflects  earnings  on the
Company's investment accounts.

Total  expenses of $3.3  million are $1.7 million  below total  expenses of $5.0
million  in  the  first  quarter  of  1996.  Virtually  all of  the  decline  is
attributable  to the  disposed  and  reorganized  West  Coast  operations  which
recorded total expenses of $0.3 million in the first quarter of 1997 compared to
$1.7 million in the prior year period.

Total  personnel  costs of $2.3  million  are $0.9  million  lower than the $3.2
million  recorded in the first  quarter of 1996. A $1.0 million  decline in West
Coast  personnel  expenses was  partially  offset by a $0.1 million  increase in
LMC's personnel  costs; LMC added personnel to support and service its remaining
West Coast revenue  stream.  Selling and  promotional  costs of $0.2 million are
$0.2 million  below the $0.4 million in such costs in the year earlier  quarter,
reflecting  LMC's  greater use of public  relations to market its mutual  funds,
thereby   reducing   advertising  and  sales  literature   costs.   General  and
administrative costs of $0.8 million are $0.6 million less than the prior year's
figure of $1.4  million.  Most of the decrease is  attributable  to the disposed
West Coast operations;  the remainder  reflects the absence of certain legal and
audit fees associated with the Company's  reorganization  which were recorded in
the first quarter of 1996.

Profit  before tax  amounted  to $1.3  million,  up $0.5  million  from the $0.8
million  recorded  in the first  quarter of 1996.  The  provision  for state and
federal taxes increased $0.3 million to $0.5 million in the first quarter versus
$0.2 million in the prior year period due to the increase in profit  before tax.
The Company has net operating loss  carryforwards of approximately  $5.9 million
which are available to offset future taxable income which expire over the period
1998 through 2008.


Effects of Inflation

The Company does not believe that inflation has had a significant  impact on the
operations of the Company to date.  The Company's  assets  consist  primarily of
cash and  investments  which are  monetary  in  nature.  However,  to the extent
inflation results in rising interest rates with the attendant adverse effects on
the  securities  markets and on the value of  investments  held in the Company's
accounts,  inflation may adversely affect the Company's  financial  position and
results of operations. Inflation also may result in increased operating expenses
(primarily  personnel-related  costs) that may not be readily recoverable in the
fees charged by the Company.

Liquidity and Financial Condition

The  Company's   business  typically  does  not  require   substantial   capital
expenditures.  The  most  significant  capital  investments  are in  technology,
including computer equipment and telephones.

Historically,  the  Company  has been  cash  self-sufficient.  Cash  flows  from
operations have ranged between $1.7 million and $4.5 million over the past three
years  primarily  as a result  of the  Company's  net  income.  Cash  flow  from
operations amounted to $0.2 million in the first quarter of 1997.

Net cash flows from investing  activities  have ranged  between  inflows of $0.4
million and outflows of $0.8  million  over the past three years.  For the first
quarter of 1997, cash outflows from investing  activities was $0.2 million.  The
principal  use of cash in the first quarter of 1997 was the purchase of computer
equipment.

Cash flows from financing  activities  consistently  have been negative over the
past three years. The most significant outflow has been the payment of a regular
quarterly  dividend to Piedmont,  the Company's former parent. Net cash outflows
from financing activities in the first quarter of 1997 of $0.1 million consisted
of the purchase of 20,000  shares of the  Company's  stock  recorded as treasury
shares,  which occurred in conjunction with the Company's  previously  announced
share buyback  program.  The Company may in the future issue debt  securities or
preferred stock or enter into loan or other agreements that restrict the payment
of dividends on and repurchase of the Company's capital stock.

Historically,  the Company has maintained a substantial  amount of liquidity for
purposes of meeting regulatory  requirements and potential business demands.  At
March 31,  1997,  the  Company  had $7.4  million of cash and cash  equivalents.
Management  believes  the  Company's  cash  resources,  plus  cash  provided  by
operations,  are  sufficient  to meet  the  Company's  foreseeable  capital  and
liquidity  requirements.  As a result  of the  holding  company  structure,  the
Company's  cash flows will depend  primarily on  dividends or other  permissible
payments from its subsidiaries.
The Company has no standby lines-of-credit or other similar arrangements.

LFD as registered broker-dealer,  has federal and state net capital requirements
at March 31, 1997 of $5,000.  The  aggregate net capital of LFD was $0.3 million
at March 31, 1997.  Lexington  Management  Corporation,  Market Systems Research
Advisors,  Inc. and Market  Systems  Research  Inc.,  as  registered  investment
advisors,  must meet net capital  requirements  imposed at the federal and state
levels.

Stockholders'  equity on March 31, 1997  increased  to $10.4  million  from $9.8
million at December 31, 1996. This increase reflects the Company's  earnings for
the first quarter.

Management  believes that the Company's  liquid assets and its net cash provided
by operations  will enable it to meet any  foreseeable  cash  requirements.  The
Company's overall financial condition remains strong.




Part II.  Other Information

Item 1.  Legal Proceedings

     None

Item 6. Exhibits and Reports on Form 8-K

(A)     List of Exhibits
No.  27  Financial  Data  Schedule  (filed  with  the  Securities  and  Exchange
Commission)

(B)     Report on Form 8-K
          The Registrant filed a Form 8-K on March 12, 1997 reporting under Item
4,  changing  Registrant's  certifying  accountant,  which  is  incorporated  by
references.

Other Items under Part II have been  omitted  since they are either not required
or are not applicable.


                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

LEXINGTON GLOBAL ASSET MANAGERS, INC.

By: /s/Richard M. Hisey
    -----------------------
    RICHARD M. HISEY
    EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER AND TREASURER

Date: 5-15-96