Westwood Holdings Group, Inc. (WHG): History, Ownership, Mission, How It Works & Makes Money

How does a boutique asset manager like Westwood Holdings Group, Inc. (WHG) navigate the volatile markets and still manage $18.3 billion in firmwide Assets Under Management and Advisement (AUM/AUA) as of Q3 2025? Their third-quarter results, showing $24.3 million in revenue and a net income of $3.7 million, prove their diversified platform is defintely a factor, but what's the real engine behind that performance? You need to understand the core mission, how they structure ownership, and the mechanics of their revenue streams-especially how strategic moves like their MDST Exchange-Traded Fund (ETF) reaching $150 million in assets translate to shareholder value.

Westwood Holdings Group, Inc. (WHG) History

You're looking for the bedrock of Westwood Holdings Group, Inc. (WHG)-the story behind how a boutique Dallas firm grew into a publicly traded asset manager. The direct takeaway is that Westwood's journey is one of strategic, long-term acquisitions and a clear focus shift, starting with a woman-founded investment advisory firm in 1983 and culminating in a diversified platform with $18.3 billion in firmwide assets under management and advisement (AUM/AUA) as of September 30, 2025.

Given Company's Founding Timeline

Year established

Westwood Management Corp., the predecessor to Westwood Holdings Group, Inc., was established in 1983.

Original location

The company was originally located in Dallas, Texas, where it remains headquartered today.

Founding team members

The firm was founded by Susan Byrne, who served as Chairman and CEO of Westwood Management Corp. until 2005, and Brian O'Reilly. It's a point of pride that the firm reflects its origins as a woman-founded business.

Initial capital/funding

The precise initial capital or funding details are not publicly available, but the company's foundational capital came from establishing an SEC Registered Investment Advisor, Westwood Management Corp.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The biggest shifts for Westwood Holdings Group weren't just about size, but about structure and focus. Honestly, the move to become a publicly-traded holding company was defintely the most important structural change, allowing for the subsequent acquisition-fueled growth.

• The Public Market Pivot (1997/2002): The Initial Public Offering in 1997, and the subsequent spin-off and NYSE listing in 2002, fundamentally changed the company's trajectory. This access to capital markets was crucial for funding the growth strategy through M&A.
• Strategic Diversification through M&A: The acquisitions of Liberty Financial Asset Management in 2002 and Thompson, Siegel & Walmsley, LLC in 2006 were pivotal. These deals didn't just add assets; they brought in new investment strategies and broadened the client base, moving the firm beyond its initial core offerings.
• The 2025 ETF and Institutional Mandate Success: The first three quarters of 2025 showed the strategy paying off, with the firm securing a nearly $1 billion sub-advisory mandate in Small Cap Value and launching the LBRTY Global Equity ETF. This focus on high-growth areas helped drive Q3 2025 revenues to $24.3 million and net income to $3.7 million.
• The Wealth Management Focus: The sale of its trust company operations and the continued emphasis on wealth management for high net worth individuals, alongside institutional asset management, solidified its position as a focused investment management boutique. This is a critical distinction in a crowded field. You can read more about this strategic direction in Mission Statement, Vision, & Core Values of Westwood Holdings Group, Inc. (WHG).

As of September 30, 2025, the firm's financial strength is clear: it held $39.2 million in cash and liquid investments and reported stockholders' equity of $123.9 million, with no debt. That's a strong balance sheet for navigating market uncertainties.

Westwood Holdings Group, Inc. (WHG) Ownership Structure

Westwood Holdings Group, Inc. (WHG) is a publicly traded investment management firm with a mixed ownership structure, where institutional investors hold the majority stake, but insiders maintain a significant, aligned position.

Westwood Holdings Group, Inc.'s Current Status

Westwood Holdings Group is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol WHG. This status means its shares are available on the open market, and it is subject to the rigorous reporting requirements of the U.S. Securities and Exchange Commission (SEC). As of October 30, 2025, the company reported a market capitalization of approximately $147.14 million, reflecting its size as a focused asset and wealth management boutique. The firm benefits from broad-based employee ownership, which helps align management and employee interests with shareholder returns. For more on the firm's core philosophy, you can review its Mission Statement, Vision, & Core Values of Westwood Holdings Group, Inc. (WHG).

Westwood Holdings Group, Inc.'s Ownership Breakdown

The company's decision-making is heavily influenced by its institutional shareholders, but the substantial insider ownership ensures a defintely strong alignment of interests between management and long-term value creation. Based on data from the third quarter of 2025, here is the breakdown:

Here's the quick math: With 61.95% of shares held by institutions, any major strategic shift needs their tacit approval. BlackRock, for example, is one of the top institutional holders, controlling approximately 5.08% of the shares as of mid-2025.

Westwood Holdings Group, Inc.'s Leadership

The firm is steered by a seasoned executive team and a board with deep financial and industry expertise, with an average management tenure of 7.5 years. This stability in leadership is crucial in the volatile asset management space.

• Brian O. Casey: Chief Executive Officer (CEO) and Director. He has been with the company for nearly two decades, providing long-term strategic continuity.
• Fabian Gomez: President and Chief Operating Officer (COO). He oversees the day-to-day operations and execution of the firm's strategy.
• Murray Forbes, III: Managing Director, Chief Financial Officer (CFO), Principal Accounting Officer, and Treasurer. He manages the firm's financial health and reporting.
• Randy A. Bowman: Independent Chairman of the Board. He guides the board's oversight function.
• Susan Byrne: Founder and Vice Chairman of the Board. Her continued presence maintains a link to the firm's founding principles.

The Board of Directors was strengthened in March 2025 with the appointments of J. Hale Hoak and Katherine Murray, adding extensive investment management and energy sector expertise, which is particularly relevant given the firm's focus on Energy & Real Assets strategies.

Westwood Holdings Group, Inc. (WHG) Mission and Values

Westwood Holdings Group, Inc. (WHG) is a focused investment management boutique and wealth management firm whose purpose extends beyond returns, centering on a client-first approach built on integrity and a disciplined process. Their core values, which include reliability and driving results, are actually rooted in a unique cultural foundation: Coach John Wooden's Pyramid of Success, guiding every decision from portfolio management to client service.

Westwood Holdings Group's Core Purpose

You're looking for the cultural DNA of a firm, and for Westwood Holdings Group, Inc., it's a commitment to a high-conviction, outcome-oriented approach, delivering bespoke (customized) solutions to institutions and private wealth clients. This client-centric focus has been their bedrock for over 40 years, fostering long-term relationships.

Official mission statement

While Westwood Holdings Group, Inc. doesn't publish a single, concise mission statement, their actions and stated business philosophy clearly define their purpose. They aim to deliver superior investment solutions and build lasting relationships, which means they focus on two key areas.

• Provide tailored investment solutions to meet specific financial goals.
• Deliver strong, long-term investment performance through rigorous research.
• Maintain long-lasting relationships based on trust, transparency, and exceptional service.

Honestly, their mission is to be the boutique firm that gives you the best of both worlds: specialized strategies and white-glove service. For a deeper dive into how this mission translates to the balance sheet, check out Breaking Down Westwood Holdings Group, Inc. (WHG) Financial Health: Key Insights for Investors.

Vision statement

The firm's vision is less about a formal declaration and more about the impact they want to have in the competitive financial landscape. They want to be known for their expertise and their client-centric approach, which is how a smaller player competes with giants like BlackRock.

• Be a leading independent investment management firm recognized for expertise.
• Consistently deliver superior investment results that exceed client expectations.
• Expand capabilities while maintaining commitment to integrity and excellence.

They are defintely putting capital behind this vision; as of March 31, 2025, Westwood Holdings Group, Inc. held $26.9 million in cash and liquid investments, ready to execute on strategic opportunities like their expanding ETF platform. That's a solid war chest for a boutique firm.

Westwood Holdings Group, Inc. slogan/tagline

Westwood Holdings Group, Inc. uses a powerful, concise three-word phrase that captures their operational ethos and client promise.

• INTEGRITY | RELIABILITY | RESULTS

This isn't just marketing fluff; it's a distillation of their core values-integrity, reliability, responsiveness, adaptability, teamwork, and driving results-all underpinned by a culture that values ethical conduct and transparency. Their focus on results is clear: Firm Assets Under Management (AUM) reached $18.3 Billion as of June 30, 2025.

Westwood Holdings Group, Inc. (WHG) How It Works

Westwood Holdings Group, Inc. operates as a boutique asset management and wealth services firm, generating revenue primarily through advisory fees charged on the $17.3 billion in Assets Under Management (AUM) it oversees for institutional, intermediary, and private wealth clients. The firm creates value by actively managing a diverse suite of investment strategies, focusing on risk-adjusted returns and a client-first approach to bespoke financial solutions.

Westwood Holdings Group, Inc.'s Product/Service Portfolio

Westwood Holdings Group, Inc.'s Operational Framework

Westwood's operational framework is built on a disciplined, active management process that translates its value-oriented investment philosophy into a range of vehicle-optimized solutions for clients. This structure lets them deliver tailored investment strategies across three main distribution channels: Institutional, Wealth Management, and Mutual Funds/ETFs.

The firm maintains a lean operating expense base, which contributed to a sharp turnaround in profitability, with the net profit margin climbing to 7.5% in Q3 2025, up from 3% a year prior. This focus on cost discipline means that growth in AUM can be leveraged into higher operating income relatively fast. Honestly, that kind of margin expansion is a defintely sign of a well-run business model.

• Investment Process: Combines bottom-up fundamental security selection with top-down asset allocation views to navigate market cycles.
• Asset Mix: As of September 30, 2025, the largest segment is Institutional Assets at $9.0 billion (52%), followed by Wealth Management at $4.3 billion (25%).
• Value Creation: Revenue of $24.3 million in Q3 2025 was driven by higher average AUM, primarily consisting of advisory fees charged on the assets it manages.
• Wealth Services: Delivers white-glove trust and wealth services, including financial planning and estate services, ensuring high client retention.

Westwood Holdings Group, Inc.'s Strategic Advantages

The firm's competitive edge comes from its long-standing commitment to a differentiated investment philosophy and a boutique service model, which is especially appealing as market leadership broadens beyond a few mega-cap stocks.

• Risk-Adjusted Performance: Core strategies, like Income Opportunity, have maintained a top decile ranking since inception, validating the emphasis on downside risk mitigation.
• Product Innovation: The rapid expansion of the ETF platform, including the launch of eleven new Defined Volatility sector ETFs, positions Westwood to capture flows from the intermediary channel.
• Financial Strength: A debt-free balance sheet and a strong cash position of $39.2 million in cash and liquid investments as of Q3 2025 provide operational flexibility and capital for strategic growth.
• Client-First Culture: Over 40 years of experience providing bespoke investment strategies with a vehicle-optimized approach fosters strong, long-term client relationships.

If you want to understand the foundational principles driving these actions, review the Mission Statement, Vision, & Core Values of Westwood Holdings Group, Inc. (WHG).

Westwood Holdings Group, Inc. (WHG) How It Makes Money

Westwood Holdings Group, Inc. (WHG) primarily makes money by charging fees on the assets it manages and advises for clients, a model known as asset management. This revenue is directly tied to the total value of client portfolios-the Assets Under Management (AUM) and Assets Under Advisement (AUA)-meaning market appreciation boosts revenue even if net client flows are flat.

The firm's total revenue for the third quarter of 2025 was $24.3 million, driven by higher average AUM, which totaled $17.3 billion at the end of the quarter.

Westwood Holdings Group's Revenue Breakdown

The company's revenue is structured around two core segments: Advisory and Trust. The Advisory segment, which includes institutional, mutual fund, and ETF strategies, is the largest revenue driver, while the Trust segment provides wealth management and fiduciary services.

Here's the quick math: The Advisory segment generated approximately $19.52 million in the second quarter of 2025, with the Trust segment adding about $5.11 million. The Advisory segment's growth is focused on higher-fee products like the MDST exchange-traded fund (ETF), which surpassed $150 million in assets in Q3 2025, and private fund strategies that exceeded their annual fundraising goal.

Business Economics

The financial engine of Westwood Holdings Group is fundamentally a fee-for-service model based on a percentage of AUM, but the firm is actively shifting toward higher-margin products to fight industry-wide fee compression.

• Fee Pressure & Product Mix: Outflows in Q3 2025 were concentrated in lower-fee, large-cap strategies, but the firm is successfully building momentum in higher-fee channels. This shift is critical because a smaller AUM base in a high-fee product can generate more revenue than a larger AUM base in a low-fee product.
• Performance-Based Fees: Westwood offers a performance-based fee structure, sometimes branded as Sensible Fees™ for certain strategies, for qualified clients. This aligns the firm's earnings with client outcomes, meaning they earn a higher fee when they outperform a benchmark. It's a smart way to justify active management fees in a market where passive investing is cheap.
• AUM Composition: The largest single block of assets is Institutional, accounting for 52% of the $17.3 billion in AUM, or $9.0 billion. Wealth Management holds 25% ($4.3 billion), and Mutual Funds/ETFs hold 23% ($4.0 billion). Maintaining institutional mandates is vital for scale.
• Operating Leverage: Since the core cost structure (salaries, technology, office space) is relatively fixed, any increase in AUM from market appreciation or net inflows drops quickly to the bottom line, providing strong operating leverage.

For a deeper dive into the firm's guiding principles, you can check out the Mission Statement, Vision, & Core Values of Westwood Holdings Group, Inc. (WHG).

Westwood Holdings Group's Financial Performance

As of the end of the third quarter of 2025, Westwood Holdings Group demonstrated a significant improvement in profitability year-over-year, largely due to higher revenues and unrealized appreciation on private investments.

• Quarterly Revenue: Total revenue for Q3 2025 was $24.3 million, up from $23.7 million in the same quarter a year ago.
• Net Income: Net income saw a substantial jump to $3.7 million in Q3 2025, compared to just $0.1 million in Q3 2024. This is a defintely strong turnaround.
• Earnings Per Share (EPS): Diluted EPS was $0.41 for Q3 2025, a massive improvement from $0.01 in the prior year's quarter.
• Non-GAAP Economic Earnings: This non-GAAP metric, which management uses to evaluate performance, was $5.7 million in Q3 2025, or $0.64 per share. This shows the underlying profitability is strong.
• Balance Sheet Health: The firm maintains a very conservative financial position, holding $39.2 million in cash and liquid investments as of September 30, 2025, and carries no debt. This debt-free structure provides significant stability.

Westwood Holdings Group, Inc. (WHG) Market Position & Future Outlook

Westwood Holdings Group, Inc. (WHG) is positioned as a high-conviction value boutique navigating a challenging asset management landscape by aggressively diversifying its product lineup. Its future trajectory hinges on the success of its new Exchange-Traded Fund (ETF) platform and its strategic shift to a multi-family office model to stabilize client flows.

Competitive Landscape

In the fragmented asset management sector, Westwood Holdings Group, Inc. competes against a spectrum of firms, from large, diversified players to other specialized boutiques. The table below visualizes its size relative to two key peers, illustrating its position as a smaller, highly focused player in the mid-tier segment.

Here's the quick math: This comparison uses the combined Assets Under Management (AUM) of the three firms-approximately $339.4 billion-as a proxy for their competitive peer group, showing how much larger scale competitors are. Westwood Holdings Group, Inc. is a small-cap asset manager with AUM of $17.3 billion as of Q3 2025, which gives it a tiny slice of the overall market but a competitive standing against firms like Manning & Napier ($18.4 billion AUM) [cite: 7, 1, 1 in step 2, 1 in step 3].

Opportunities & Challenges

The firm's focus on value-oriented and alternative strategies positions it well for a potential market rotation away from the 'Magnificent Seven' mega-cap growth stocks, but it still faces persistent industry headwinds.

Industry Position

Westwood Holdings Group, Inc. is a small, specialized player in the U.S. Capital Markets industry, but its financial health is solid. The firm's P/E Ratio of 19.3x is notably below the peer average of 43.6x and the industry average of 25.6x, suggesting a valuation discount that may not fully reflect its recent profit acceleration [cite: 12 in step 1].

• Profitability Turnaround: Year-on-year profit growth of 165.3% in 2025 dramatically outpaced its five-year average, driven by strong cost discipline and higher average AUM [cite: 12 in step 1, 10 in step 2].
• Financial Fortitude: The balance sheet remains debt-free with $39.2 million in cash and liquid investments as of September 30, 2025 [cite: 7 in step 2].
• Product Momentum: The launch of 11 new Defined Volatility sector ETFs via the WEBs partnership and securing a nearly $1 billion sub-advisory mandate in Small Cap Value (Q1 2025) demonstrate product innovation and distribution traction [cite: 7 in step 2, 4 in step 1].
• Niche Expertise: The firm maintains top-quartile and top-decile performance rankings in key strategies like Income Opportunity and Real Estate Income, which is a major draw for institutional clients [cite: 10 in step 2].

If you're looking to dive deeper into who is betting on this turnaround, you should read Exploring Westwood Holdings Group, Inc. (WHG) Investor Profile: Who's Buying and Why?