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 06-30-1997 
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 June 30, 1997. 

                     Common Stock-$.01 Par Value Per Share
                          Authorized 15,000,000 Shares
                    5,299,887 Shares Issued and Outstanding





                                        LEXINGTON GLOBAL ASSET MANAGERS, INC.
                                                   AND SUBSIDIARIES


Part I. Financial Information
Item I. Financial Statements


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

                                                             6/30/97           12/31/96
                                                           (Unaudited)         (Audited)
Assets:
Cash and cash equivalents:
   Cash                                                   $    198,563      $   1,631,249
   Money market accounts                                     6,326,477          5,898,575
                                                         ----------------   ----------------
                                                             6,525,040          7,529,824
                                                         ----------------   ----------------

Receivables:
   Investment advisory and management fees                   1,446,708          1,161,473
   Due from funds and other                                    787,158            868,649
                                                         ----------------   ----------------
                                                             2,233,866          2,030,122
                                                         ----------------   ----------------
Marketable securities                                        1,657,789          1,205,350
Prepaid expenses                                             1,352,409            367,159
Prepaid taxes                                                   10,359             11,900
Furniture, equipment and leasehold improvements (net of
   accumulated depreciation and amortization)                1,470,427          1,347,324
Intangible assets (net of accumulated amortization)            202,776            210,875
Deferred income taxes                                        2,565,318          3,131,842
Other assets                                                   207,716            243,120
                                                         ----------------   ----------------
        Total assets                                       $16,225,700       $ 16,077,516
                                                         ================   ================


Liabilities:
Accounts payable and other accrued expenses               $  3,085,624       $  3,691,326
Deferred income                                              1,495,414          1,197,576
Federal income taxes payable                                 1,014,444          1,015,351
Other liabilities                                                4,781              6,681
                                                         ----------------   ----------------
        Total liabilities                                    5,600,263          5,910,934
                                                         ----------------   ----------------
Minority interest                                              369,644            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                                        (10,063,978)       (11,734,723)
                                                         ----------------   ----------------
        Total paid-in capital and accumulated deficit       11,492,418          9,821,673
Less cost of treasury stock  (188,000 shares)                1,236,625                  -
                                                         ----------------   ----------------
        Total stockholders' equity                          10,255,793          9,821,673
                                                         ----------------   ----------------

        Total liabilities and stockholders' equity        $ 16,225,700      $  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>                <C>                 <C>

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  (Unaudited)

                                                          Three Months Ended June 30,          Six Months Ended June 30,
                                                             1997             1996               1997             1996

Revenues:
   Investment advisory:
      Mutual fund management fees (including approx.
          $152,236  $140,486  $286,624  and
          $257,960 from related parties)                 $2,761,027       $2,773,175         $5,492,494        $5,466,693
      Mutual fund commissions                                10,426           44,004             29,075           189,526
      Other management fees (including approximately
         $637,402  $583,560  $1,275,175 and
         $1,132,052 from related parties)                 1,706,455        2,117,185          3,341,500         4,238,679
   Commissions income                                        36,858          593,714             69,471         1,157,719
   Other income                                             230,890           77,981            436,481           270,742
                                                        ---------------   --------------    ---------------  ---------------
       Total revenues                                     4,745,656        5,606,059          9,369,021        11,323,359
                                                        ---------------   --------------    ---------------  ---------------

Expenses:
   Salaries and other compensation                        2,107,335        3,159,050          4,371,083         6,318,603
   Selling and promotional                                  326,141          398,598            565,125           827,800
   Administrative and general                             1,156,898        1,297,972          2,003,142         2,664,532
                                                        ---------------   --------------    ---------------  ---------------
       Total expenses                                     3,590,374        4,855,620          6,939,350         9,810,935
                                                        ---------------   --------------    ---------------  ---------------
       Income before income taxes and minority interest   1,155,282          750,439          2,429,671         1,512,424

Provision for income  taxes
   Current                                                  114,633          489,836            167,666           597,162
   Deferred                                                  96,228         (153,851)           566,524           (54,372)
                                                        ---------------   --------------    ---------------  ---------------
       Total provision                                      210,861          335,985            734,190           542,790
                                                        ---------------   --------------    ---------------  ---------------
       Income before minority interest                      944,421          414,454          1,695,481           969,634
Minority interest                                            12,639           17,619             24,735            28,859
                                                        ---------------   --------------    ---------------  ---------------
       Net income                                        $  931,782        $ 396,835        $ 1,670,746           940,775
                                                        ===============   ==============    ===============  ===============

Earnings per share
   Net income per share                                       $0.17            $0.07              $0.30             $0.17
                                                        ===============   ==============    ===============  ===============

   Average shares outstanding during the period           5,400,041        5,487,887          5,443,169         5,487,887
                                                        ===============   ==============    ===============  ===============





              The accompaning notes are an integral part of the condensed consolidated financial statements.
</TABLE>
                                  LEXINGTON GLOBAL ASSET MANANGERS, INC.
                                                      AND SUBSIDIARIES



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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (Unaudited)

                                                                                                 Six Months Ended June 30,
                                                                                                 1997                 1996

Cash flows from operating activities:
Net income                                                                                   $ 1,670,746          $  940,775
Adjustments to reconcile net income to net cash provided
   by operating activities:
      Depreciation and amortization                                                              161,596             224,344
      Unrealized appreciation on marketable securities                                          (192,759)           (103,116)
      Deferred income taxes                                                                      566,524             (54,372)
      Minority interest                                                                           24,735              28,859
Change in assets and liabilities
      Receivables                                                                               (203,744)            (16,841)
      Prepaid expenses                                                                          (985,250)           (119,123)
      Prepaid taxes                                                                                1,541               5,477
      Accounts payable and accrued expenses                                                     (605,702)           (605,698)
      Federal income taxes payable                                                                  (907)            141,128
      Deferred management fees                                                                   297,838              49,443
      Other, net                                                                                  24,282              (2,473)
                                                                                           -----------------    -----------------
Net cash provided by operating activities                                                        758,900             488,403

Cash flows from investing activities:
      Purchases of furniture, equipment and leasehold
         improvements                                                                           (267,379)           (313,882)
      Purchases of marketable securities                                                        (259,680)           (108,538)
                                                                                           -----------------    -----------------
Net cash used in investing activities                                                           (527,059)           (422,420)

Cash flows from financing activities:
      Principal payments under capital lease obligations                                               -             (45,901)
      Purchase of treasury stock                                                              (1,236,625)                  -
                                                                                           -----------------    -----------------
Net cash used in financing activities                                                         (1,236,625)            (45,901)
Net increase / (decrease) in cash and cash equivalents                                        (1,004,784)             20,082
Cash and cash equivalents, beginning of period                                                 7,529,824           5,615,017
                                                                                           -----------------    -----------------
Cash and cash equivalents, end of period                                                     $ 6,525,040         $ 5,635,099
                                                                                           =================    =================








                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. In the second quarter,  the Company  repurchased 168,000 shares of
its stock.


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.

June 30, 1997 Compared to June 30, 1996

As anticipated,  the Company's  results in the first half 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 six months ended June 30,
1997 was $1.7  million,  $0.30 per share,  compared to $0.9  million,  $0.17 per
share for the first six months of 1996.

Total assets  under  management  at June 30, 1997 were $3.4 billion  compared to
$3.2  billion at December  31, 1996 and June 30,  1996.  Total  revenues of $9.4
million  are  16.8%  below  the first  half of 1996  when the  Company  recorded
revenues of $11.3 million.  The West Coast  operations  recorded $1.6 million in
revenues  in the first half of 1997 and $3.5  million in the first half of 1996.
Excluding  the West Coast  operations,  total  revenues of $7.8 million are even
with the first half of 1996.

Net mutual fund management fees, the Company's largest revenue source, were even
with the first half of 1996 at $5.5 million. Mutual fund assets under management
have  increased  during the first  half to $2.0  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)  and  to  products  with  shared  revenue
arrangements (sub-advisory relationships).

Other management fees of $3.3 million are down $0.9 million from $4.2 million in
the prior year  period.  The  disposed  West Coast  operations  account for $0.8
million of this decline. Similarly,  commissions income declined to $0.1 million
in the first half of 1997 from $1.2  million  the first half of 1996 as a result
of the  disposal of the West Coast  operations.  Other income of $0.4 million is
$0.1 million ahead of the first half of 1996  primarily  reflecting  earnings on
the Company's investment accounts.

Total  expenses of $7.0  million are $2.8 million  below total  expenses of $9.8
million in the first half of 1996.  Virtually all of the decline is attributable
to the disposed and  reorganized  West Coast  operations  which  recorded  total
expenses of $0.8  million in the first half of 1997  compared to $3.4 million in
the prior year period.

Total  personnel  costs of $4.4  million  are $1.9  million  lower than the $6.3
million recorded in the first half of 1996. A $2.0 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 $0.6 million are $0.2
million  below the $0.8  million in such costs in the year  earlier,  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 $2.0 million are $0.7 million less than the prior year's figure of $2.7
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 $2.4  million,  up $0.9  million  from the $1.5
million  recorded in the first half of 1996. The provision for state and federal
taxes  increased  $0.2  million to $0.7  million in the first half  versus  $0.5
million in the prior year period due to the  increase in profit  before tax. The
Company has net operating loss carryforwards of approximately $5.3 million which
are available to offset future  taxable income which expire over the period 1998
through 2008.


Three Months Ended June 30, 1997 and 1996

The  consolidated  net income for the three  months ended June 30, 1997 was $0.9
million, compared to $0.4 million for the second quarter of 1996.

Total  revenues of $4.7 million are 16.1% below the second  quarter of 1996 when
the  Company  recorded  revenues  of $5.6  million.  The West  Coast  operations
recorded $0.8 million in revenues in the second quarter of 1997 and $1.7 million
in the  second  quarter of 1996.  Excluding  the West  Coast  operations,  total
revenues of $3.9 million are even with the second quarter of 1996.

Net mutual  fund  management  fees were even with the second  quarter of 1996 at
$2.8 million.  Although assets under  management are $0.2 billion higher at June
30, 1997 than at June 30, 1996,  the growth in assets has occurred  primarily in
lower fee products.  Other management fees of $1.7 million are down $0.4 million
from $2.1 million in the prior year period.  The disposed West Coast  operations
account for all of this decline.  Similarly,  commissions  income  declined from
$0.5 million in the second  quarter of 1996 to $37,000 in the second  quarter of
1997 as a result of the disposal of the West Coast  operations.  Other income of
$0.2 million is $0.1 million ahead of $0.1 million in the second quarter of 1996
and primarily reflects earnings on the Company's investment accounts.

Total  expenses of $3.6  million are $1.3 million  below total  expenses of $4.9
million  in the  second  quarter  of  1996.  Virtually  all of  the  decline  is
attributable  to the  disposed  and  reorganized  West  Coast  operations  which
recorded  total  expenses of $0.5 million in the second quarter of 1997 compared
to $1.7 million in the prior year period.

Total  personnel  cost of $2.1  million  are $1.1  million  lower  than the $3.2
million  recorded in the second  quarter of 1996. One million of this decline is
attributable to the reorganized West Coast  operations.  Selling and promotional
costs of $0.3 million are $0.1  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 $1.2 million are $0.1 million less
than the prior year's figure of $1.3 million.

Profit  before tax  amounted  to $1.2  million,  up $0.4  million  from the $0.8
million  recorded in the second  quarter of 1996.  The  provision  for state and
federal  taxes  decreased  $0.1  million to $0.2  million in the second  quarter
versus  $0.3  million  in  the  prior  year  period  due to  temporary  book/tax
differences having the effect of reducing taxes.


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 $0.8 million in the first half of 1997; the major source
of this cash was the Company's net income.

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
half of 1997,  cash outflows from  investing  activities  was $0.5 million.  The
principal  uses of cash for investing  activities in the first half of 1997 were
the purchase of computer  equipment and purchases of various  securities related
to the development of a new product for the Company.

Cash flows from financing  activities  consistently  have been negative over the
past three years. The Company does not at this time pay a dividend on its common
stock. 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 half of 1997 of $1.2 million consisted of the
purchase of 188,000 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
June 30, 1997, the Company had $6.5 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  a  registered   broker-dealer,   has  federal  and  state  net  capital
requirements  at June 30, 1997 of $5,000.  The  aggregate net capital of LFD was
$0.3 million at June 30, 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 June 30,  1997  increased  to $10.3  million  from $9.8
million at December 31, 1996. This increase reflects the Company's  earnings for
the first half,  less the purchase of the Company's  stock  recorded as treasury
shares.

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 4.  Submission of Matters to a Vote of Security Holders

    (a)  Date of Meeting:  May 15, 1997 Annual Meeting of Stockholders

    (b)  Matters voted on and number of affirmative/negative votes:

           1.  Election of Directors:
           William R. Miller, Lunsford Richardson, Jr., L. Richardson Preyer

           For All Directors:  5,279,658            Withheld Authority:  51,943

     2.  Ratification  of the  selection  of KPMG  Peat  Marwick  L.L.P.  as the
     independent auditors for the current calendar year.

           Votes:                   For              Against           Abstain
                                 5,325,409            1,464             4,728


Item 6.  Exhibits and Reports on Form 8-K


(a)  Exhibits:

       (27)  Financial Data Schedule for the six months ended June 30, 1997.



                                   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:  8-13-97