Westwood Holdings Group NYSE: WHG reported first-quarter 2026 results highlighting higher assets under management, continued growth in its ETF and private capital platforms, and a modest gain from the sale of its Vista Bank interest.
Assets under management rose to $18.3 billion
Chief Executive Officer Brian Casey said firm-wide assets under management (AUM) increased to $18.3 billion at March 31, 2026, from $17.4 billion at year-end 2025. Casey attributed the growth primarily to energy and real asset strategies—particularly private energy funds and energy-focused ETFs—which more than offset “modest declines in U.S. value equity.”
Casey emphasized that private fund AUM was a significant contributor, reflecting new commitments and capital deployment in energy secondaries and co-investment vehicles. He characterized this growth as “structural in nature rather than market dependent,” adding that the firm is seeing client allocations shift toward “income-oriented, real asset, and private market solutions,” citing factors such as energy security concerns, global infrastructure investment, and power demand tied to data centers and AI-linked infrastructure.
Market backdrop and strategy performance
In discussing the quarter’s market environment, Casey noted that after U.S. equities reached new highs in late January, markets reversed, and oil prices rose significantly in March following U.S. and Israeli military actions against Iran. He said the S&P 500 fell 4.3% for the quarter, while small- and mid-cap stocks were modestly positive. Energy was the standout, with S&P 500 energy stocks gaining more than 38% over the period, according to Casey.
Casey also noted that the Federal Reserve held the federal funds rate steady in the 3.5%–3.75% range amid 0.7% annualized fourth-quarter GDP growth and lingering inflation. Bond yields edged higher, producing modestly negative returns, he said.
On investment performance, Casey acknowledged ongoing pressure in parts of the firm’s U.S. value equity strategies, while pointing to areas of strength. He said the SMidCap Value strategy ranked in the top quartile of both its investment and Morningstar peer groups over the trailing three years, and that the Large Cap Value strategy delivered “competitive results relative to peers” over a 10-year period.
Casey highlighted multi-asset results, saying the Multi-Asset Income Fund ranked in the top decile of its Morningstar peer category over trailing three- and five-year periods, while the Income Opportunity strategy ranked in the top third over the trailing three years. He also pointed to performance in energy and real asset strategies and said MDST and WEEI—Westwood’s Salient Enhanced Midstream Income ETF and Salient Enhanced Energy Income ETF—continued to provide “attractive yields” consistent with their objectives.
Looking ahead, Casey said the firm believes conditions are evolving “in a way that increasingly favors our investment philosophy,” citing broadening market leadership beyond mega-cap technology into sectors including energy, industrials, and utilities.
Sales activity and distribution milestones
Casey said combined institutional and intermediary gross sales were approximately $529 million in the quarter. In the institutional channel, he reported gross sales of $322 million and net inflows of $32 million. A key development was onboarding the firm’s first institutional Managed Investment Solutions (MIS) client, which Casey said accounted for more than $200 million in gross sales.
He added that the pipeline remained robust across value and energy strategies, and said the firm began SMidCap due diligence with two large national consultants, with an expectation of continued momentum in SMidCap Value for defined contribution plans.
In the intermediary channel, Casey reported gross sales of $207 million, led by energy and real assets, with net outflows of $34 million. He said MDST gained approval from its first major wirehouse and continued to receive approvals from major national platforms. Casey also noted that YLDW, the firm’s Enhanced Income Opportunity ETF launched in December, was approaching $25 million in assets—describing that level as a typical threshold for platform onboarding.
ETF and private capital growth, including West Two and West Three
Casey said Westwood’s ETF suite surpassed $315 million in combined AUM during the quarter. He later added that the firm’s “three Enhanced Income Series ETFs have now surpassed $320 million in combined assets,” after MDST crossed $200 million in AUM in February—an achievement he described as a landmark for a fund “in the market for less than two years.” He said MDST maintained an annualized distribution rate of approximately 10%.
On private capital, Casey said Westwood Energy Secondaries Fund II (West Two) closed with over $300 million in capital commitments, more than double its initial $150 million target. Since launching its first energy secondaries fund in 2023, he said the firm raised nearly $350 million and deployed over $250 million across two flagship funds and three co-investment vehicles. Casey said fundraising for Westwood Energy Secondaries Fund III (West Three) and a related co-investment fund was underway and expected to be marketed through early 2027, with “substantial early interest.”
To support the private capital platform, Casey said the firm added team members to its private capital operations group and implemented a new AI-driven technology tool to streamline operational processes.
Financial results, Vista Bank sale, and dividend
Chief Financial Officer Murray Forbes III reported total revenues of $25.0 million for the first quarter of 2026, compared with $27.1 million in the fourth quarter and $23.3 million in the prior-year first quarter. Forbes said revenue declined sequentially due to lower average AUM and because performance fees were recognized in the fourth quarter for the prior year. Year-over-year revenue increased due to higher average AUM and growth from ETFs and private energy secondaries funds, he said.
Forbes reported first-quarter net income of $0.8 million, or $0.09 per share, compared with $1.9 million, or $0.21 per share, in the prior quarter. He attributed the change primarily to lower revenues and higher compensation expenses, partially offset by a gain from the sale of an investment in a private bank and lower income taxes. Non-GAAP economic earnings were $2.8 million, or $0.31 per share, versus $3.3 million, or $0.36 per share, in the fourth quarter. Economic earnings compared with $2.5 million, or $0.29 per share, in the first quarter of 2025, Forbes said.
On AUM detail, Forbes said firm-wide assets under management and advisement totaled $18.3 billion, consisting of $17.3 billion of AUM and $0.9 billion of assets under advisement. He said AUM was comprised of $9.0 billion institutional (52%), $4.2 billion wealth management (24%), and $4.1 billion mutual fund and ETF assets (24%). Over the quarter, he reported net outflows of $50 million and market appreciation of $0.8 billion within AUM.
Casey also highlighted completion of the sale of Westwood’s interest in Vista Bank, which he said generated a net gain of approximately $2 million.
Forbes said Westwood ended the quarter with $34.2 million in cash and liquid investments and a debt-free balance sheet. He also announced the board approved a regular cash dividend of $0.15 per common share, payable July 1, 2026, to stockholders of record on June 1, 2026.
No questions were asked during the call’s Q&A session. In closing remarks, Casey said the firm’s opportunity pipeline had grown to “over $1 billion” and that the MIS pipeline was improving, with expectations to land another institutional client “in the coming months.” He also said the ETF platform was seeing strong demand and noted MDST was expected to go fully live across a major wirehouse platform the following day.
About Westwood Holdings Group NYSE: WHG
Westwood Holdings Group, Inc is an independent, publicly traded asset management firm founded in 1983 and headquartered in Kansas City, Missouri. Through its wholly owned subsidiaries, the company offers a range of investment advisory services tailored to institutional, retail, and high-net-worth clients. Westwood's disciplined, value-oriented approach guides its research process across equity and fixed-income markets, with an emphasis on fundamental analysis and long-term risk management.
The firm's product lineup includes U.S.
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