Westwood(WHG)2025-03-05 21:47Assets Under Management and Financial Performance - Westwood Management and Westwood Trust collectively had AUM of approximately 1.0 billion as of December 31, 2024[15]. - As of December 31, 2024, assets under management (AUM) in the Westwood Funds® totaled 9 million[260]. - The company’s revenues are primarily generated from fees derived as a percentage of AUM and AUA, which are subject to market risks[259]. Acquisitions and Growth Strategy - The company acquired the asset management business of Salient Partners, L.P. in 2022, which included Salient Capital, L.P. and Salient Advisors, L.P.[18]. - In January 2023, Westwood acquired an additional 32% interest in Broadmark, increasing its ownership to approximately 80%[19]. - Westwood's growth strategy includes organic growth, acquisitions, and the addition of new products to diversify AUM and revenue sources[44]. - The company is pursuing strategic corporate development opportunities, including potential acquisitions of asset management firms and hiring investment professionals[70]. Investment Strategies and Products - Westwood's investment strategies include five strategies each having AUM exceeding $1 billion, such as LargeCap Value and Income Opportunity[27]. - Westwood launched its first two actively-managed ETFs in 2024: Westwood Salient Enhanced Midstream Income (MDST) and Westwood Salient Enhanced Energy Income (WEEI)[73]. - In 2024, Westwood launched two ETFs: Westwood Salient Enhanced Midstream Income ETF (MDST) and Westwood Salient Enhanced Energy Income ETF (WEEI)[45]. - Westwood's investment strategies include a focus on energy secondaries private investment funds, targeting discounts to net asset value ranging from 20% to 40%[73]. Client Relationships and Wealth Management - The company emphasizes building strong relationships with clients to enhance its ability to meet their investment objectives[16]. - Westwood Trust serves high net worth and ultra-high net worth individuals and families, with a focus on holistic wealth management approaches[67]. - The company anticipates continued interest from clients in its wealth management services, driven by referrals and existing client relationships[67]. Employee and Workforce Diversity - The company has approximately 151 full-time employees as of December 31, 2024, with 41% being female and 32% representing minority communities[87][104]. - As of December 31, 2024, approximately 15% of employees hold the Chartered Financial Analyst designation, indicating a skilled workforce[88]. Regulatory Compliance and Risk Management - The company is subject to extensive regulation by the SEC and other regulatory bodies, ensuring compliance with the Investment Advisers Act and the Investment Company Act[78]. - The company does not currently participate in any hedging activities or utilize derivative financial instruments, exposing it to inherent market risks[259]. - The company’s fiduciary duty to clients imposes standards and requirements on trading, allocation of investment opportunities, and execution of transactions[79]. Financial Health and Dividend Payments - The company has made quarterly and special dividend payments to Westwood Holdings Group, Inc. out of undivided profits, reflecting its financial health[83]. - The company’s cash equivalents and other investment instruments are exposed to financial market risk due to fluctuations in interest rates, but significant impacts on interest income are not expected[261]. Marketing and Brand Development - The firm aims to strengthen its brand name through high-profile coverage in investment publications and creative marketing strategies[71]. - The company has expanded its distribution capabilities through the Salient Acquisition and the addition of a Managed Investment Solutions team, enhancing its product range[64]. Sales and Market Engagement - Westwood's proactive sales efforts have increased throughout 2024, focusing on consultants and institutional plan sponsors[69]. - The Managed Investment Solutions team joined Westwood in late 2023, focusing on tailoring investment solutions for diverse institutional clients[42]. - The company continues to evaluate new strategies and resources to meet actual and potential investor needs[17].