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  03-31-98

 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, 1998.

                                        Common Stock-$.01 Par Value Per Share
                                             Authorized 15,000,000 Shares
                                             5,185,887 Shares Outstanding


                              TABLE OF CONTENTS


         Part I.  Financial Information                    

                  Condensed Consolidated Statements of Financial Condition  
                  Condensed Consolidated Statements of Operations           
                  Condensed Consolidated Statements of Cash Flows           
                  Notes to Condensed Consolidated Financial Statements      
                  Management's Discussion and Analysis of Financial Condition
                       and Results of Operations                            

         Part II.  Other Information
                  Legal Proceedings and Exhibits                            


                                    LEXINGTON GLOBAL ASSET MANAGERS, INC.
                                    AND SUBSIDIARIES

Item I.  Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<S>                                                                       <C>                    <C>  
                                                                            3/31/1998             12/31/1997
                                                                           (Unaudited)            
Assets:
Cash and cash equivalents:
   Cash                                                                         $ 562,650             $ 193,383
   Money market accounts                                                        7,064,992             8,511,915
                                                                         -----------------     -----------------
                                                                                7,627,642             8,705,298
                                                                         -----------------     -----------------

Receivables:
   Investment advisory and management fees                                      1,216,449             1,233,377
   Due from funds and other                                                     1,027,909               596,333
                                                                         -----------------     -----------------
                                                                                2,244,358             1,829,710
                                                                         -----------------     -----------------
Marketable securities                                                           1,623,476             1,524,788
Prepaid expenses                                                                1,789,212             1,708,122
Prepaid taxes                                                                     139,556                 6,203
Fixed assets (net of accumulated depreciation
   and amortization)                                                            1,343,546             1,384,772
Intangible assets (net of accumulated amortization)                               190,626               194,676
Deferred income taxes                                                           1,803,521             1,938,213
Other assets                                                                      141,491               141,491
                                                                         -----------------     -----------------
          Total assets                                                       $ 16,903,428          $ 17,433,273
                                                                         =================     =================


Liabilities:
Accounts payable and other accrued expenses                                   $ 3,303,451           $ 4,437,585
Deferred income                                                                 1,827,119             1,626,123
Federal income taxes payable                                                      882,215               863,667
Other liabilities                                                                  11,586                10,579
                                                                         -----------------     -----------------
          Total liabilities                                                     6,024,371             6,937,954
                                                                         -----------------     -----------------
Minority interest                                                                 405,688               405,058

Stockholders' Equity:
Common stock, $.01 par value; 15,000,000 authorized shares;
   5,487,887 issued                                                                54,879                54,879
Additional paid-in capital                                                     21,708,142            21,708,142
Accumulated deficit                                                            (9,113,331)           (9,345,918)
Deferred Compensation                                                          (1,503,821)           (1,654,342)
Treasury stock at cost                                                           (672,500)             (672,500)
                                                                         -----------------     -----------------
          Total stockholders' equity                                           10,473,369            10,090,261
                                                                         -----------------     -----------------

          Total liabilities and stockholders' equity                         $ 16,903,428          $ 17,433,273
                                                                         =================     =================



                  See accompanying notes to the condensed consolidated financial statements (Unaudited).
</TABLE>

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



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  (Unaudited)

                                                                                 Three Months Ended March 31,
                                                                                 1998                  1997

Revenues:
   Investment advisory:
      Mutual fund management fees (including approximately
          $99,800 and $134,400 from related parties)                            $ 2,482,703           $ 2,731,467
      Mutual fund commissions                                                        29,116                18,649
      Other management fees (including approximately
         $714,700 and $637,800 from related parties)                              1,892,446             1,635,045
   Commissions income                                                                23,373                32,613
   Other income                                                                     192,058               205,591
                                                                            ----------------      ----------------
          Total revenues                                                          4,619,696             4,623,365
                                                                            ----------------      ----------------

Expenses:
   Salaries and other compensation                                                2,435,789             2,263,748
   Selling and promotional                                                          223,898               238,984
   Administrative and general                                                     1,545,692               846,245
                                                                            ----------------      ----------------
          Total expenses                                                          4,205,379             3,348,977
                                                                            ----------------      ----------------
          Income before income taxes and minority interest                          414,317             1,274,388

Provision for income  taxes
   Current                                                                           46,408                53,033
   Deferred                                                                         134,692               470,296
                                                                            ----------------      ----------------
          Total provision                                                           181,100               523,329
                                                                            ----------------      ----------------
          Income before minority interest                                           233,217               751,059
Minority interest                                                                       630                12,095
                                                                            ----------------      ----------------
          Net income                                                              $ 232,587             $ 738,964
                                                                            ================      ================

Earnings per share:
   Basic earnings per share                                                         $0.04                 $0.13
                                                                            ================      ================
   Diluted earnings per share                                                       $0.04                 $0.13
                                                                            ================      ================

   Average shares outstanding during the period                                   5,181,854             5,486,776
                                                                            ================      ================



                   See   accompanying   notes  to  the  condensed   consolidated financial statements (Unaudited).
</TABLE>

                                        LEXINGTON GLOBAL ASSET MANAGERS, INC.
                                        AND SUBSIDIARIES


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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

                                                                               Three Months Ended March 31,
                                                                                  1998               1997

Cash flows from operating activities:
Net income                                                                      $ 232,587          $ 738,964
Adjustments to reconcile net income to net cash provided
   by (used in) operating activities:
      Depreciation and amortization                                                78,820             72,009
      Amortization of deferred costs                                                    -              9,221
      Deferred income taxes                                                       134,692            470,296
      Minority interest                                                               630             12,095
      Compensation expense - stock options                                        150,521                  -
Change in assets and liabilities
      Receivables                                                                (414,648)            15,824
      Marketable securities                                                          (98,688)           (61,563)
      Prepaid expenses                                                            (81,090)          (658,142)
      Prepaid taxes                                                              (133,353)           (17,169)
      Accounts payable and accrued expenses                                    (1,134,134)          (649,740)
      Federal income taxes payable                                                 18,548              1,378
      Deferred management fees                                                    200,996            226,336
      Other, net                                                                    1,007             22,410
                                                                           ---------------   ----------------
Net cash provided by (used in) operating activities                            (1,044,112)           181,919

Cash flows from investing activities:
      Purchases of furniture, equipment and leasehold
         improvements                                                             (33,544)          (214,556)
                                                                           ---------------   ----------------
Net cash used in investing activities                                             (33,544)          (214,556)

Cash flows from financing activities:
      Purchase of treasury stock                                                        -           (130,000)
                                                                           ---------------   ----------------
Net cash used in financing activities                                                   -           (130,000)
Net decrease in cash and cash equivalents                                      (1,077,656)          (162,637)
Cash and cash equivalents, beginning of period                                  8,705,298          7,529,824
                                                                           ---------------   ----------------
Cash and cash equivalents, end of period                                      $ 7,627,642        $ 7,367,187
                                                                           ===============   ================



                 See accompanying notes to the condensed  consolidated financial statements (Unaudited).
</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  1997 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 the  Company  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.  During 1997,
the Company repurchased 313,000 shares of stock for a total of $2,280,375. Also,
during 1997, 233,000 treasury shares were issued under the Company's  Restricted
Stock Award Plan. In the first quarter of 1998, the Company did not purchase any
of its common stock.  Subsequent to the first quarter,  the Company  repurchased
95,000 shares of its common stock.


3.  Changes in Accounting Principles

In June 1997,  FASB  issued  SFAS No.  131,  "Disclosures  about  Segments of an
Enterprise and Related Information".  SFAS No. 131 establishes standards for the
way a public  enterprise  reports  information  about operating  segments in its
annual and interim  financial  statements.  It also  establishes  standards  for
related  disclosures  about  products and services,  geographic  areas and major
customers.  Generally,  financial information will be required to be reported on
the basis used by management for evaluating segment performance and for deciding
how to allocate  resources  to segments.  SFAS No. 131 is  effective  for fiscal
years  beginning  after  December  15,  1997 and need not be  applied to interim
reporting  in the initial  year of  adoption.  The Company  intends to adopt the
provisions  of  SFAS  No.  131 in its  December  31,  1998  annual  consolidated
financial statements,  however, management of the Company has not yet determined
what additional information, if any, will need to be reported.


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, 1997 is  incorporated  herein by reference and should
be read in conjunction with the following.

March 31, 1998 Compared to March 31, 1997

The  consolidated  net income for the three months ended March 31, 1998 was $0.2
million,  or $0.04 per share,  compared to $0.7 million,  or $0.13 per share for
the first three months of 1997.

Total assets under  management  at March 31, 1998 were $3.7 billion  compared to
$3.4 billion at December  31, 1997 and $3.3  billion at March 31, 1997.  Each of
the Company's three primary served markets,  (Mutual Funds,  Private Client, and
Institutional),  contributed  approximately $0.1 billion to the growth in assets
from  December 31, 1997.  Both the Private  Client and  Institutional  segments,
which are primarily  invested in the U.S. bond and equity  markets,  experienced
growth  in assets  through  superior  performance  results  associated  with the
relatively strong U.S. capital markets in 1997 and in the first quarter of 1998.
Mutual fund assets under management also grew primarily through  appreciation of
domestic equity mutual funds.

Total revenues of $4.6 million are even with the first quarter of 1997.

Net mutual fund management fees, the Company's largest revenue source, decreased
$0.2  million to $2.5  million in the first  quarter  of 1998  compared  to $2.7
million in the first quarter of 1997.  These  revenues  decreased as a result of
the shift in assets under  management  from some of the Company's  higher priced
products  (emerging  markets and  precious  metals) to some of the lower  priced
products  (domestic equity and fixed income) and to products with shared revenue
arrangements  (sub-advisory  relationships).  This shift occurred as a result of
relative investment  performance and changing investor  preferences which toward
the end of the year  favored  U.S.  capital  markets  over  some of the  foreign
markets, particularly the emerging markets.

Other  management  fees of $1.9 million are up $0.3 million from $1.6 million in
the first quarter of 1997. The West Coast operations  accounted for the increase
due to  continued  increases  in assets  under  management  associated  with the
continuing strength of the U.S. equity markets.  Other income of $0.2 million is
even with the first quarter of 1997.

Total  expenses of $4.2  million are $0.9 million  above total  expenses of $3.3
million in the first quarter of 1997.  The total expense  increase was primarily
due to  administrative  and  general  expenses  of $1.5  million  which are $0.7
million  above the $0.8 million  recorded in the first  quarter of 1997. Of this
increase,  $0.6 million  derives  from an  administrative  contract  with Select
Advisors  ("Select") for the Company's West Coast operations.  This contract was
part of the  reorganization of these  operations,  which occurred in 1996. Under
the  administrative  contract the Company pays fees to Select for administrative
and support services for the West Coast clients.  Because the West Coast clients
are billed  annually in advance,  the expenses  incurred for the  administrative
contract are amortized evenly over a twelve-month period. The first quarter 1998
expenses includes  amortization of the contract expense across the entire client
base. In the first quarter of 1997, the Company  benefited from the fact that no
administrative  fees were charged in 1997 for those  accounts which entered into
or renewed advisory  agreements in the first nine months of 1996; i.e., prior to
September 30, 1996, the date of the West Coast reorganization.

Total  personnel  costs of $2.4  million are $0.2  million  higher than the $2.2
million  recorded  in  the  first  quarter  of  1997.  The  Company   recognized
approximately  $150,000 of expense  associated  with the issuance of  restricted
stock to certain key executive employees.  In addition,  salaries increased $0.1
million due to annual salary increases.

Selling and promotional costs of $0.2 million remained  relatively even with the
first quarter of 1997.

Pre-tax income of $0.4 million decreased $0.9 million from $1.3 million recorded
in the  first  quarter  of 1997.  The  provision  for state  and  federal  taxes
decreased  $0.4  million due to the decrease in taxable  income.  Due to taxable
temporary differences and lower profits, the Company did not use any NOLs in the
first quarter of 1998, yet the Company has remaining NOLs of approximately  $2.7
million which are available to offset  future  taxable  income which expire over
the period 2003 through 2012.


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 values 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  investments  are in technology,  including
computer equipment and telephones.

Historically,  the  Company  has been  cash  self-sufficient.  Cash  flows  from
operations have ranged between inflows of $3.7 million and $1.5 million over the
past three  years.  In the first  quarter of 1998 the Company had cash  outflows
from  operations  which amounted to $1.0 million.  The major use of cash was the
payment of accrued expenses.

Net cash from investing  activities  have ranged between inflows of $0.5 million
and outflows of $0.5  million  over the past three years.  Outflows of cash from
investing  activities were just marginally negative in the first quarter of 1998
representing the purchase of computer equipment.

Cash flows from financing  activities  consistently  have been negative over the
past three  years.  On March 7, 1997,  the  Company  announced  a 750,000  share
repurchase program under which the Company may repurchase its stock from time to
time in the open market or through privately  negotiated  transactions at market
prices.  The stock  repurchase plan has a term of three years.  During 1997, the
Company repurchased  313,000 shares of its stock for a total of $2,280,375.  The
Company  did not  purchase  any of its stock in the first  quarter of 1998,  but
subsequent to the first quarter purchased 95,000 shares for a total of $724,375.
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,  1998 the  Company  had $7.6  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,   had  federal  and  state  net  capital
requirements at March 31, 1998 of $25,000.  The aggregate net capital of LFD was
$0.3 million at March 31, 1998.  LMC, MSR, and MSRI,  as  registered  investment
advisors,  must meet net capital  requirements  imposed at the Federal and state
levels.

Stockholders'  equity on March 31, 1998  increased  to $10.5  million from $10.1
million at December 31, 1997 primarily as a result of the Company's net income.

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

Year 2000

The Company,  like most  commercial  and financial  institutions,  is working to
ensure that its operating and processing  systems will,  along with those of its
service providers,  continue to function when the year 2000 arrives. The Company
has developed  and  implemented  a  comprehensive  plan to complete all internal
system  conversions by the end of 1998. A significant  part of the plan involves
upgrading  current  software  to  newer  versions  which  are  fully  Year  2000
compliant.  To date, most of the Company's  current  software  systems are fully
compliant.  Based on this plan, it is estimated that incremental expenses to the
Company for the Year 2000 project will be nominal.  In addition,  the Company is
keeping  apprised of the progress of outside  vendors' plans to become Year 2000
compliant. 


Some of the statements included within Management's  Discussion and Analysis may
be  considered  to be forward  looking  statements  which are subject to certain
risks and uncertainties.  Factors which could cause the actual results to differ
materially  from those  suggested by such  statements are described from time to
time in the  Company's  Annual  Report on Form 10-K and other  filings  with the
Securities and Exchange Commission.


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)

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: 5-14-98