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Westwood Holdings Group, Inc. (NYSE:WHG) showcased its latest financial performance and strategic initiatives in an investor presentation on April 30, 2025. The boutique asset management firm reported growth in assets under management (AUM) and positive net flows for the first quarter, while highlighting its expanding ETF platform and diversified business model.
Q1 2025 Financial Highlights
Westwood reported solid financial results for the first quarter of 2025, with revenues of $23.2 million and income of $0.5 million. The company’s assets under management reached $18.0 billion as of March 31, 2025, consisting of $17.0 billion in AUM and $1.0 billion in assets under advisement (AUA). Notably, the firm achieved positive net flows of $0.6 billion during the quarter.
As shown in the following financial highlights:
This performance represents continued momentum from 2024, when the company reported in its Q3 earnings that AUM had reached $17.7 billion, its highest level in six years. The growth from $17.7 billion in Q3 2024 to $18.0 billion in Q1 2025 demonstrates Westwood’s ability to attract and retain client assets.
The company’s Economic Earnings, a non-GAAP measure used by management to evaluate performance, stood at $2.5 million for Q1 2025, reflecting adjustments for stock-based compensation, intangible amortization, and related tax impacts.
Strategic Initiatives
A key focus of Westwood’s presentation was its expanding ETF platform, which was launched in 2024. The company now offers five ETFs across various asset classes, including energy, equity, and defined volatility products. This strategic move positions Westwood to capitalize on the growing ETF market, which according to previous company statements has reached $10 trillion in the U.S.
The ETF offerings are detailed in the following slide:
The ETF lineup includes the Enhanced Midstream Income ETF (MDST) and Enhanced Energy Income ETF (WEEI), which were launched in April 2024. The company expanded its offerings with two defined volatility ETFs (DVQQ and DVSP) in December 2024, and most recently launched the LBRTY Global Equity ETF (BFRE) in March 2025.
Another strategic initiative highlighted in the presentation is Westwood’s position as a founding investor in the Texas Stock Exchange, which represents a new opportunity in the regional financial infrastructure landscape.
Business Diversification
Westwood emphasized its diversified business model as a key strength. The company’s AUM is spread across multiple strategies and client types, providing stability and multiple growth avenues.
The following chart illustrates this diversification:
U.S. Value Equity represents the largest portion of Westwood’s strategy mix at 51%, followed by Multi-Asset/Multi-Strategy at 28% and Wealth at 21%. By account type, Institutional Separate Accounts and Other Managed Accounts make up 53% of assets, while Wealth Management and Mutual Funds & ETFs account for 24% and 23%, respectively.
The institutional client base is primarily composed of Public Funds and Sub-Advisory relationships, each representing 39% of institutional assets. Corporate clients account for 15%, with Foundations/Endowments at 6% and Taft-Hartley at 1%.
This diversification helps insulate the company from volatility in any single market segment or client type.
Firm Overview and Culture
Westwood, founded in 1983, employs 153 people and maintains a focus on high-conviction, quality-biased investments. The company’s investment approach is team-driven and risk-aware, with capabilities spanning equity, tactical asset allocation, energy & real assets, and customized solutions.
The comprehensive firm overview is presented in this slide:
The company also highlighted its commitment to diversity and ESG principles. According to the presentation, 20% of corporate board members and 41% of employees are women. In 2024, approximately 38% of new team members came from diverse backgrounds. Westwood manages $970 million in values-based ESG assets as of December 31, 2024, and supported more than 60 charities through corporate giving programs last year.
Forward-Looking Statements
Looking ahead, Westwood appears positioned for continued growth through its diversified business model and strategic initiatives in the ETF space. The positive net flows in Q1 2025 represent a turnaround from the net outflows reported in Q3 2024, suggesting improved momentum in asset gathering.
The company’s stock closed at $16.67 on April 30, 2025, down slightly by 0.42% from the previous close. Over the past year, the stock has traded between $11.01 and $18.03, with recent performance showing resilience amid market volatility.
Westwood’s emphasis on employee ownership, with staff and directors holding approximately 33% of the company’s equity, aligns management interests with shareholders and underscores confidence in the firm’s long-term prospects.
As the company continues to expand its ETF platform and capitalize on its diversified business model, investors will be watching for sustained growth in AUM and improved financial performance in the coming quarters.
Full presentation:
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