Westwood Holdings Group Inc (NYSE: WHG)

Westwood Holdings Group Inc manages investment assets and provides services through its subsidiaries, primarily operating in the asset management industry. The company offers investment advisory services to a diverse client base, including institutional investors, mutual funds, individual investors, and high net worth individuals. Westwood Holdings Group Inc was founded in 1983 and has since established itself as a provider of investment solutions, leveraging its expertise in various asset classes and investment strategies.

The company generates revenue primarily through fees based on a percentage of assets under management (AUM) and assets under advisement (AUA). As of December 31, 2025, Westwood Management and Westwood Trust collectively had AUM of approximately $16.5 billion and AUA of approximately $0.9 billion. The company's revenue model is driven by the performance and growth of its investment strategies, which cater to a wide range of clients seeking to achieve their financial objectives.

• U.S. Value Equity: This segment employs a value-oriented approach to identify undervalued, high-quality businesses capable of generating superior risk-adjusted returns. The team seeks well-run businesses with conservative balance sheets and strong free cash flow. Key strategies include AllCap Value, LargeCap Value, MidCap Value, SmallCap Value, and SMidCap Value, each benchmarked to specific Russell indices.

• Multi-Asset: The Multi-Asset team employs an investment process that applies top-down views across asset classes along with bottom-up security selection. The team utilizes quantitative and fundamental tools to evaluate macro, micro, and technical conditions. Key strategies include Income Opportunity and Multi-Asset Income, which invest across multiple fixed income sectors, convertibles, and equity securities with an income generation bias.

• Energy and Real Assets: This team focuses on providing access to a broad universe of energy companies, with an emphasis on energy infrastructure. The strategy includes Master Limited Partnerships (MLPs) and midstream corporations, as well as other companies involved with infrastructure connected to the production, transportation, or distribution of energy. The principal investment strategy is MLP & Energy Infrastructure, which aims to diversify a traditional stock/bond portfolio along with income and inflation protection.

• Tactical Absolute Return: These strategies seek to deliver positive absolute returns through market cycles. The team uses a combination of qualitative and quantitative metrics to manage risk and enhance alpha. Key strategies include Tactical Growth and Tactical Plus, which actively manage equity market exposure via the use of ETFs, equity-based futures, and options.

• Income Alternatives: This segment manages the Alternative Income strategy and the Real Estate Income strategy. The Alternative Income strategy utilizes a market-neutral approach with convertible arbitrage and opportunistic fixed income. The Real Estate Income strategy invests across the capital stack of publicly-traded real estate investment trusts (REITs) and other real estate-related companies.

• Managed Investment Solutions (MIS): The MIS team focuses on tailoring investment solutions to a diverse array of individual institutional risk/reward tolerances and investment approaches. The team combines active design, rules-based methodologies, transparency, outcome-oriented solutions, adaptability, and independence to create custom portfolio solutions based on specific client goals, beliefs, and objectives.

Westwood Holdings Group Inc operates in a highly competitive industry, facing substantial competition from other asset management firms. The company competes on the basis of investment strategies, performance, quality of service, fee levels, and the way in which investment strategies are marketed. Key competitors include other asset management firms, investment dealers, banks, insurance companies, mutual fund companies, ETFs, brokerage and investment firms, and others that sell various investment products. The company's competitive advantages include its boutique, innovative offerings across its product platform, strong relationships with clients, investment consultants, and intermediaries, and a focus on client service and investment performance.

The company's client base includes large institutions such as corporate retirement plans, public retirement plans, endowments, foundations, financial advisors, individuals, mutual funds, and private capital funds. Westwood Holdings Group Inc also serves high net worth individuals and families, non-profit endowments and foundations, public and private retirement plans, and individual retirement accounts through Westwood Trust. The company's ability to attract and retain clients is driven by its competitive investment performance, strong client relationships, and excellent client service.