Joining us here at Post9 this morning with his take is Lazard Asset Management CIO Eric Vonstren. Eric also served as assistant Treasury Secretary for economic policy under the Biden White House. Welcome, Eric.It's good to see you. >> Good to be with you, Carl. >> Um, so David's been and remains pretty constructive on this notion of a reaceleration.Are you with him. Well, I think we're seeing a lot of upside in the aggregate numbers, but I think the important thing to recognize is that the US economy, its g ...

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Summary of Lazard Asset Management Conference Call Company Overview - **Company**: Lazard Asset Management - **AUM**: Approximately $265 billion [1] Key Points and Arguments Leadership Transition - **New CEO**: Chris Hogbin appointed as CEO of Lazard Asset Management in December [1] - **Experience**: Chris brings 30 years of global investment leadership, previously serving as global head of investments at AllianceBernstein [1] Strategic Vision - **Lazard 2030**: The vision set by group CEO Peter Orszag is a key attraction for Chris Hogbin [3] - **Strengths**: Lazard has strong investment and distribution capabilities, but there are areas for improvement [3][4] Priorities for Growth 1. **Delivering Investment Performance**: - Two-thirds of AUM is outperforming its stated benchmark, but there is room for improvement [7] - Appointment of a Chief Investment Officer, Eric Van Nostrand, to oversee portfolio managers and enhance performance [8][9] 2. **Growing the Business**: - Transition year with $8.5 billion of net inflows, excluding a significant client termination [11] - January saw nearly $3 billion in net inflows, indicating positive momentum [11] 3. **Capitalizing on Growth**: - Focus on improving margins without adding costs [12] - Need for operating leverage as the business grows [12] Strategic Business Mix - **Protect and Grow**: Focus on systematic equities, global listed infrastructure, and emerging markets [13] - **Invest and Enhance**: Investment in the investment team and new product development, including a move from 0 to $1 billion in active ETFs [14] - **White Space Opportunities**: - Expansion in public markets, private markets, and wealth management [15][16] M&A Considerations - Organic growth is preferred, but selective M&A may be necessary for expansion [17][20] - Focus on partnerships rather than large acquisitions in private markets [20] Institutional Investor Sentiment - Increasing skepticism among asset owners regarding U.S. market valuations, leading to diversification into international markets [25] - Two-thirds of managed assets are non-dollar denominated, indicating strong international exposure [26] Active ETF Business - Growth from 0 to 7 active ETFs with $1 billion AUM, indicating strong demand for successful strategies [35][36] - Future plans include expanding into Europe and innovating new ETFs [37] Margin Improvement - Current margins are below industry average, with no structural limitations to improvement [42][44] - Focus on growing existing products and rationalizing underperforming strategies [45][46] Distribution and Sales Strategy - Impressive distribution team performance with record gross sales of $55 billion [55] - Need for increased front-line personnel to enhance intermediary relationships [55][57] Wealth Management Opportunities - Wealth business in France is profitable and has growth potential; U.S. wealth business offers unique high-net-worth services [71][72] AI Integration - AI will be leveraged in investment processes, client experience, and operational efficiency [75][76] - Aim to automate routine tasks to allow analysts more time for strategic thinking [76] Closing Remarks - Confidence in Lazard's strengths and long-term growth vectors, contributing to the Lazard 2030 ambitions [78]

Core Insights - Lazard exemplifies the concept of "contextual alpha," which integrates various factors such as regulatory and macroeconomic elements into investment analysis, enhancing the quality of M&A and asset investment decisions [2][3] Company Background - The leadership at Lazard, including figures like Felix Rohatyn, has historically focused on a comprehensive approach to investment banking, which aligns with the current CEO's vision [3] Strategic Approach - The CEO's diverse background in business, government, and academia informs the strategic initiatives at Lazard, emphasizing the importance of contextual factors in investment decisions [2][3]

Lazard (NYSE: LAZ) 2026 Conference Summary Company Overview - **Company**: Lazard - **Date**: February 10, 2026 - **Speaker**: Peter Orszag, CEO and Chairman Key Points Industry Insights - **Contextual Alpha**: Lazard emphasizes "contextual alpha," which integrates macroeconomic and regulatory factors into investment analysis, a concept rooted in the firm's history with figures like Felix Rohatyn [4][6] - **U.S. Economy**: The U.S. economy is described as "strong but fragile," driven by an AI investment boom and high-income consumer spending [8][9] - **Corporate Performance Disparity**: There is a significant disparity in corporate performance, with the 95th percentile firms achieving returns on invested capital (ROIC) 25 times higher than the 10th percentile, compared to a 10 times ratio two decades ago [11][12] - **M&A Opportunities**: The current regulatory environment is more accommodating, leading to increased ambitions for mergers and acquisitions (M&A), with potential GDP gains of 15% from M&A activity [9][13] Company Strategy - **Lazard 2030 Initiative**: Aimed at enhancing ambition and shareholder returns, including a C-Corp conversion to attract new investors [30][32] - **Cultural Transformation**: Lazard has undergone a cultural shift towards a more collegial and collaborative environment, improving recruitment and internal morale [43][46] - **Advisory Business Focus**: The advisory side is prioritizing productivity improvements, with a target of increasing productivity per managing director by $2.5 million relative to 2023 [53][54] Advisory Business Developments - **Managing Director Changes**: Lazard has replaced 80 out of 200 managing directors to enhance performance and productivity [53] - **Expansion Plans**: Plans to rebalance focus between public and private company work, with an emphasis on large-cap public company transactions [57][58] - **Private Capital Growth**: The share of advisory revenue from private capital has increased from 25% to 40%, with plans to grow this further [66] Asset Management Insights - **Focus Areas**: Lazard is concentrating on quant and systematic strategies, emerging market equity, and customized solutions, with strong inflows in these areas [81][82] - **Wealth Management Potential**: The wealth management segment, particularly in Paris, is seen as having significant growth potential, leveraging the Lazard brand and insights [92][93] AI Integration - **AI Utilization**: Lazard is integrating AI tools to enhance productivity and efficiency, with expectations of smaller deal teams in the future [115][116] - **AI's Role in Operations**: AI is expected to streamline operations, allowing bankers to focus more on in-person relationships and less on administrative tasks [115][116] Capital Allocation Strategy - **Prioritization Changes**: The focus on buybacks has shifted to prioritizing inorganic growth opportunities and cash management, with a disciplined approach to acquisitions [112][113] Conclusion - **Future Outlook**: Lazard is optimistic about its growth trajectory, driven by cultural transformation, strategic focus on advisory and asset management, and the integration of AI technologies [34][106]

Core Insights - Lazard, Inc. reported preliminary assets under management (AUM) of approximately $267.0 billion as of January 31, 2026, reflecting a market appreciation of $7.6 billion, net inflows of $2.9 billion, and foreign exchange (FX) appreciation of $2.1 billion [1] Group 1: Assets Under Management - The AUM as of January 31, 2026, includes $195.775 billion in equity, $35.758 billion in fixed income, $25.267 billion in multi-asset, and $10.153 billion in alternatives [1] - The total AUM increased from $254.300 billion as of December 31, 2025, indicating a growth of approximately 5.5% month-over-month [1] Group 2: Company Overview - Lazard is a leading financial advisory and asset management firm, established in 1848, with a global presence across North and South America, Europe, the Middle East, Asia, and Australia [1] - The firm provides a range of services including advice on mergers and acquisitions, capital markets, restructuring, and asset management for various clients including institutions, corporations, and high net worth individuals [1]

Core Insights - Lazard Inc. (LAZ) reported better-than-expected quarterly results, with shares gaining 2.2% following the announcement of adjusted earnings per share (EPS) of 80 cents, surpassing the Zacks Consensus Estimate of 68 cents and up from 78 cents in the previous year [1][8] Financial Performance - For Q4 2025, adjusted net revenues were $892.1 million, reflecting a 10% year-over-year increase and exceeding the Zacks Consensus Estimate by 10.1% [4] - For the full year 2025, adjusted EPS was $2.44, beating the Zacks Consensus Estimate of $2.32 and up from $2.34 in the prior year [3] - Net income on a GAAP basis for Q4 was $49.9 million, a decline of 42% from the prior-year quarter, while full-year net income was $2.36 billion, down 15% year over year [2][3] Revenue Segments - Financial Advisory segment reported adjusted operating revenues of $541.6 million, up 7% year-over-year, supported by strong advisory activity [6] - Asset Management segment saw adjusted operating revenues of $338.6 million, an 18% increase year-over-year, driven by higher management and incentive fees [6] - Corporate segment adjusted operating revenues were $11.9 million, down from $17.6 million in the previous year [6] Asset Management - Total assets under management (AUM) as of December 31, 2025, were $254.3 billion, a 12% increase year-over-year [7][9] - Average AUM for the reported quarter was $261.1 billion, also reflecting a 12% year-over-year growth [9] Expense Analysis - Operating expenses increased by 16% year-over-year to $821.8 million, primarily due to higher compensation costs [5] - The ratio of adjusted compensation expenses to operating revenues was 65.5%, slightly lower than 65.6% in the previous year [5] - The ratio of adjusted non-compensation expenses to operating revenues was 17.8%, down from 19% in the prior-year quarter [5] Balance Sheet and Share Repurchase - Cash and cash equivalents totaled $1.47 billion as of December 31, 2025, up from $1.31 billion in the prior quarter, indicating a strong liquidity position [10] - Lazard repurchased $50 million of common stock in Q4 2025, equivalent to 1 million shares, with approximately $109 million remaining for future repurchases [11] Market Position and Outlook - The company continues to benefit from strong momentum in Financial Advisory and Asset Management, supported by higher revenues and improved market conditions [12] - Persistent cost pressures, particularly related to compensation, require close monitoring going forward [12]

Core Insights - Lazard reported $892.11 million in revenue for Q4 2025, a year-over-year increase of 9.8%, with an EPS of $0.80 compared to $0.78 a year ago, exceeding the Zacks Consensus Estimate of $810.16 million by 10.12% [1] Financial Performance - The company delivered an EPS surprise of 18.08%, with the consensus EPS estimate being $0.68 [1] - Adjusted net revenue for Asset Management was $338.59 million, surpassing the average estimate of $316.2 million, representing a year-over-year change of 17.9% [4] - Adjusted net revenue for Financial Advisory was $541.63 million, exceeding the average estimate of $483.88 million, with a year-over-year change of 6.7% [4] - Adjusted net revenue for Corporate was $11.89 million, compared to the estimated $10.07 million, but showed a significant decline of 32.2% year-over-year [4] Assets Under Management - Total Equity assets under management were $199.26 billion, below the average estimate of $203.57 billion [4] - Total Fixed Income assets under management were $45.64 billion, compared to the average estimate of $48.09 billion [4] - Net Flows were reported at -$19.71 billion, worse than the estimated -$11.19 billion [4] - End of Period assets under management totaled $254.30 billion, below the average estimate of $260.69 billion [4] Stock Performance - Lazard shares returned 10.8% over the past month, outperforming the Zacks S&P 500 composite's 0.9% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]