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 09-30-1997
                                                            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 September
30, 1997.  Common  Stock-$.01 Par Value Per Share Authorized  15,000,000  Shares
5,174,887 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>


                                                               9/30/97           12/31/96
                                                             (Unaudited)
Assets:
Cash and cash equivalents:
   Cash                                                      $ 1,725,720        $ 1,631,249
   Money market accounts                                       5,443,602          5,898,575
                                                         ----------------   ----------------
                                                               7,169,322          7,529,824
                                                         ----------------   ----------------

Receivables:
   Investment advisory and management fees                     1,360,728          1,161,473
   Due from funds and other                                      655,687            868,649
                                                         ----------------   ----------------
                                                               2,016,415          2,030,122
                                                         ----------------   ----------------
Marketable securities                                          1,753,174          1,205,350
Prepaid expenses                                               1,501,552            367,159
Prepaid taxes                                                      6,203             11,900
Furniture, equipment and leasehold improvements (net of
   accumulated depreciation and amortization)                  1,423,425          1,347,324
Intangible assets (net of accumulated amortization)              198,726            210,875
Deferred income taxes                                          2,091,717          3,131,842
Other assets                                                     207,716            243,120
                                                         ----------------   ----------------
        Total assets                                        $ 16,368,250       $ 16,077,516
                                                         ================   ================


Liabilities:
Accounts payable and other accrued expenses                  $ 3,803,583        $ 3,691,326
Deferred income                                                1,477,717          1,197,576
Federal income taxes payable                                     851,025          1,015,351
Other liabilities                                                  8,399              6,681
                                                         ----------------   ----------------
        Total liabilities                                      6,140,724          5,910,934
                                                         ----------------   ----------------
Minority interest                                                386,653            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                                    21,501,516         21,501,517
Accumulated deficit                                           (9,435,147)       (11,734,723)
                                                         ----------------   ----------------
        Total paid-in capital and accumulated deficit         12,121,248          9,821,673
Less cost of treasury stock  (313,000 shares)                  2,280,375                  -
                                                         ----------------   ----------------
        Total stockholders' equity                             9,840,873          9,821,673
                                                         ----------------   ----------------

        Total liabilities and stockholders' equity          $ 16,368,250       $ 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 Sept. 30,         Nine Months Ended Sept. 30,
                                                             1997             1996               1997             1996

Revenues:
   Investment advisory:
      Mutual fund management fees (including approx.
          $177,922,  $118,571,  $464,546,  and
          $376,531  from related parties)                  $ 2,951,283      $ 2,682,772        $ 8,443,777      $ 8,149,465
      Mutual fund commissions                                    9,406           16,839             38,481          206,365
      Other management fees (including approximately
         $693,538  $581,017 $1,968,713 and
         $1,713,069  from related parties)                   1,788,396        2,159,268          5,129,896        6,397,947
   Commissions income                                           51,670          533,338            121,141        1,691,057
   Other income                                                221,931          172,800            658,412          443,542
                                                        ---------------   --------------    ---------------  ---------------
       Total revenues                                        5,022,686        5,565,017         14,391,707       16,888,376
                                                        ---------------   --------------    ---------------  ---------------

Expenses:
   Salaries and other compensation                           2,197,855        2,993,037          6,568,937        9,311,640
   Selling and promotional                                     232,277          329,886            797,402        1,157,685
   Administrative and general                                1,403,256        1,619,902          3,406,399        4,174,432
                                                        ---------------   --------------    ---------------  ---------------
       Total expenses                                        3,833,388        4,942,825         10,772,738       14,643,757
                                                        ---------------   --------------    ---------------  ---------------
       Income before income taxes and minority interest      1,189,298          622,192          3,618,969        2,244,619

Gain on sale of subsidiaries                                         -          639,881                  -          529,881

Provision for income  taxes
   Current                                                     293,036          301,556            237,530          898,720
   Deferred                                                    250,429          279,319          1,040,125          224,947
                                                        ---------------   --------------    ---------------  ---------------
       Total provision                                         543,465          580,875          1,277,655        1,123,667
                                                        ---------------   --------------    ---------------  ---------------
       Income before minority interest                         645,833          681,198          2,341,314        1,650,833
Minority interest                                               17,009         (108,128)            41,744          (79,269)
                                                        ---------------   --------------    ---------------  ---------------
       Net income                                            $ 628,824        $ 789,326        $ 2,299,570      $ 1,730,102
                                                        ===============   ==============    ===============  ===============

Earnings per share
   Net income per share                                        $0.12            $0.14              $0.43            $0.31
                                                        ===============   ==============    ===============  ===============

   Average shares outstanding during the period              5,231,409        5,487,887          5,371,806        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)

                                                                                                Nine Months Ended Sept. 30,
                                                                                                   1997                    1996

Cash flows from operating activities:
Net income                                                                                      $ 2,299,570          $ 1,730,102
Adjustments to reconcile net income to net cash provided
   by operating activities:
      Depreciation and amortization                                                                 243,802              346,647
      Unrealized appreciation on marketable securities                                             (274,079)             (86,151)
      Deferred income taxes                                                                       1,040,125              224,947
      Minority interest                                                                              41,744              (79,269)
Change in assets and liabilities
      Receivables                                                                                    13,707              395,897
      Prepaid expenses                                                                           (1,134,393)              14,515
      Prepaid taxes                                                                                   5,697               11,800
      Accounts payable and accrued expenses                                                         112,257             (849,228)
      Federal income taxes payable                                                                 (164,326)                 867
      Deferred management fees                                                                      280,141             (464,427)
      Other, net                                                                                     27,902               57,972
                                                                                           -----------------    -----------------
Net cash provided by operating activities                                                         2,492,147            1,303,672

Cash flows from investing activities:
      Purchases of furniture, equipment and leasehold
         improvements                                                                              (298,529)            (370,204)
      Purchases of intangibles                                                                            -               (7,225)
      Purchases of marketable securities                                                           (273,745)            (112,896)
      Sale of furniture and equipment                                                                     -              157,470
                                                                                           -----------------    -----------------
Net cash used in investing activities                                                              (572,274)            (332,855)

Cash flows from financing activities:
      Principal payments under capital lease obligations                                                  -              (67,521)
      Purchase of treasury stock                                                                 (2,280,375)                   -
                                                                                           -----------------    -----------------
Net cash used in financing activities                                                            (2,280,375)             (67,521)
Net increase / (decrease) in cash and cash equivalents                                             (360,502)             903,296
Cash and cash equivalents, beginning of period                                                    7,529,824            5,615,017
                                                                                           -----------------    -----------------
Cash and cash equivalents, end of period                                                        $ 7,169,322          $ 6,518,313
                                                                                           =================    =================

 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
Lexington  Global  Asset  Managers,   Inc.  (the  "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 the Company  authorized a share
repurchase program of up to 750,000 shares. Repurchases are to 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
three quarters of 1997, the Company  repurchased 313,000 shares of its stock for
a total of $2,280,375.


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.

September 30, 1997 Compared to September 30, 1996

As anticipated, the Company's results in the first nine months 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 nine months
ended  September  30, 1997 was $2.3 million,  $0.43 per share,  compared to $1.7
million, $0.31 per share for the first nine months of 1996. Included in the 1996
figures is a one time gain of $0.5 million ($0.09 per share) associated with the
sale of the Company's non-asset  management West Coast subsidiaries in the third
quarter.

Total assets under  management at September 30, 1997 were $3.8 billion  compared
to $3.2 billion at both December 31, 1996 and September 30, 1996. Total revenues
of $14.4  million are 14.8% below the first nine months of 1996 when the Company
recorded  revenues of $16.9  million.  The West Coast  operations  recorded $2.5
million in  revenues  in the first nine  months of 1997 and $5.3  million in the
first nine months of 1996.  Excluding the West Coast operations,  total revenues
of $11.9  million  increased  $0.3 million  compared to the first nine months of
1996.

Net mutual fund management fees, the Company's largest revenue source, increased
$0.3 million to $8.4  million in the first nine months of 1997  compared to $8.1
million in the first nine months of 1996.  Mutual fund assets  under  management
have  increased  during  the first  nine  months to $2.2  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 $5.1 million are down $1.3 million from $6.4 million in
the nine months ended  September 30, 1996.  The disposed  West Coast  operations
account for $1.2 million of this decline. Similarly, commissions income declined
to $0.1  million in the first nine months of 1997 from $1.7 million in the first
nine months of 1996 as a result of the  disposal  of the West Coast  operations.
Other income of $0.7  million is $0.2 million  ahead of the first nine months of
1996 primarily reflecting earnings on the Company's investment accounts.

Total  expenses of $10.8 million are $3.9 million below total  expenses of $14.7
million  in the first  nine  months of 1996.  Virtually  all of the  decline  is
attributable  to the  disposed  and  reorganized  West  Coast  operations  which
recorded  total  expenses  of $1.4  million  in the  first  nine  months of 1997
compared to $5.1 million in the prior year period.

Total  personnel  costs of $6.6  million  are $2.7  million  lower than the $9.3
million  recorded in the first nine months of 1996.  A $3.0  million  decline in
West Coast personnel expenses was partially offset by a $0.2 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 $0.8 million are
$0.4  million  below  the  $1.2  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 $3.4 million are $0.8 million less than the prior year's
figure of $4.2  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 $3.6  million,  up $0.8  million  from the $2.8
million  recorded in the first nine months of 1996.  The provision for state and
federal  taxes  increased  $0.2 million to $1.3 million in the first nine months
versus  $1.1  million in the prior year  period  due to the  increase  in profit
before tax. The Company has net operating loss  carryforwards  of  approximately
$5.6 million which are available to offset  future  taxable  income which expire
over the period 1998 through 2008.

Three Months Ended September 30, 1997 and 1996

The  consolidated  net income for the three months ended  September 30, 1997 was
$0.6 million,  compared to $0.8 million for the third quarter of 1996.  Included
in the 1996 figure is a one-time gain of $0.6 million  associated  with the sale
of the  Company's  non-asset  management  West Coast  subsidiaries  in the third
quarter.

Total  revenues of $5.0  million are 10.7% below the third  quarter of 1996 when
the  Company  recorded  revenues  of $5.6  million.  The West  Coast  operations
recorded  $0.9 million in revenues in the third quarter of 1997 and $1.9 million
in the  third  quarter  of 1996.  Excluding  the West  Coast  operations,  total
revenues of $4.1 million are $0.4 million ahead of the
prior year period.

Net mutual fund  management  fees of $3.0  million are $0.3  million  above $2.7
million in the prior year  period.  Assets  under  management  are $429  million
higher at September 30, 1997 than at September 30, 1996.  Other  management fees
of $1.8  million  are down $0.4  million  from $2.2  million  in the prior  year
period.  The disposed  West Coast  operations  account for all of this  decline.
Similarly,  commissions income of $0.1 million declined from $0.5 million in the
third quarter of 1996 as a result of the disposal of the West Coast  operations.
Other income of $0.2 million is even with the third quarter of 1996.

Total  expenses of $3.8  million are $1.1 million  below total  expenses of $4.9
million  in  the  third  quarter  of  1996.  Virtually  all of  the  decline  is
attributable  to the  disposed  and  reorganized  West  Coast  operations  which
recorded total expenses of $0.6 million in the third quarter of 1997 compared to
$1.7 million in the prior year period.

Total  personnel  costs of $2.2  million  are $0.8  million  lower than the $3.0
million  recorded in the third  quarter of 1996.  The decline of $0.8 million is
attributable to the reorganized West Coast  operations.  Selling and promotional
costs of $0.2 million are $0.1  million  below the $0.3 million in such costs in
the three  months ended  September  30, 1996,  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 $1.4 million are
$0.2  million  less than the prior  year's  figure  of $1.6  million  due to the
write-off of a loan recorded by Piedmont  Asset Advisors in the third quarter of
1996.

Profit  before tax  amounted to $1.2  million,  down $0.1  million from the $1.3
million  recorded  in the third  quarter of 1996.  The  provision  for state and
federal taxes  decreased  $37,000 in the third quarter of 1997 due to a decrease
in profit before taxable income.


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 $2.5 million in the first nine months 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
nine months of 1997,  cash outflows from investing  activities was $0.6 million.
The principal uses of cash for investing  activities in the first nine months of
1997 were the purchase of computer equipment and
purchases of various securities.

Cash flows from financing  activities  consistently  have been negative over the
past  three  years.  Historically,  the most  significant  outflow  has been the
payment of a regular  quarterly  dividend to Piedmont  Management  Company,  the
Company's former parent. The Company does not at this time pay a dividend on its
common  stock.  Net cash outflows  from  financing  activities in the first nine
months of 1997 of $2.3 million  consisted  of the purchase of 313,000  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
September 30, 1997, the Company had $7.2 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.

Lexington Funds Distributor, Inc. as a registered broker-dealer, has federal and
state net capital  requirements  at September 30, 1997 of $5,000.  The aggregate
net capital of LFD was $0.3 million at September 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 September  30, 1997 was even with  December 31, 1996 at
$9.8 million. Stockholders' equity reflects the Company's earnings for the first
nine  months,  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.

Year 2000

The Company,  like most  commercial  and financial  institutions,  is working to
assure 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.  Based on their progress,  we feel confident that the outside vendors
will achieve compliance in 1998.



Part II.  Other Information


Item 1.  Legal Proceedings

None


Item 6.  Exhibits and Reports on Form 8-K


(a)  Exhibits:

       (27)  Financial  Data  Schedule for the nine months ended  September  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:  11-12-97