Financial Data and Key Metrics Changes - In the second quarter of 2025, the company reported a 15% year-over-year growth in economic earnings per share, reaching $5.39 [4][21] - Adjusted EBITDA for the quarter was $220 million, reflecting a 1% year-over-year increase, with fee-related earnings growing 4% year-over-year [21] - The company generated over $8 billion in net client cash flows, marking the strongest net flow quarter in over a decade [10][20] Business Line Data and Key Metrics Changes - The company added approximately $55 billion in alternative assets under management (AUM), increasing total alternative AUM by 20% in just six months [5][12] - Private markets AUM grew by 50% since 2022, now standing at $150 billion, driven by high teens organic growth and new affiliate partnerships [12][15] - Liquid alternatives generated nearly $12 billion in net inflows during the quarter, with strong demand for tax-aware solutions [13][14] Market Data and Key Metrics Changes - The company experienced $19 billion in client cash inflows into alternatives, offsetting $11 billion in outflows from active equities [10][11] - The wealth channel is seeing an acceleration of alternative flows, particularly in private equity, private credit, and infrastructure [6][12] - The company’s strategic engagement with affiliates is enhancing access to the rapidly expanding wealth marketplace [6][18] Company Strategy and Development Direction - The company is focused on evolving its business mix towards secular growth areas, particularly in alternative asset classes [10][18] - The strategic partnerships with affiliates are aimed at capitalizing on growth opportunities in private markets and liquid alternatives [7][18] - The company anticipates a meaningful increase in economic earnings per share in 2026 due to the growth in alternative AUM and new affiliate partnerships [5][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term impact of their strategy execution, highlighting substantial value creation potential for shareholders [9][24] - The company is well-positioned to continue executing its growth strategy, supported by a strong balance sheet and diversified business profile [20][24] - Management noted that the ongoing demand for alternative strategies is expected to drive further growth across affiliates [6][18] Other Important Information - The company completed the sale of its minority stake in Peppertree, more than doubling its initial investment [8] - The company repurchased approximately $100 million in shares during the second quarter, with a full-year repurchase expectation of around $400 million [24][65] - The company is actively pursuing new investment opportunities, having announced four new partnerships in 2025 [7][8] Q&A Session Summary Question: Contribution from AQR and Pantheon - Management expects both Pantheon and AQR to be double-digit contributors to earnings this year, with AQR focusing on tax-aware solutions benefiting high net worth individuals [28][40] Question: Capacity Constraints for AQR - AQR has a competitive advantage due to its innovation and robust trading systems, allowing it to sustain growth despite potential capacity constraints [43][46] Question: Portfolio Management and Buybacks - The company is focused on long-term partnerships with affiliates rather than actively trading stakes, and buybacks are viewed as a flexible tool for returning capital to shareholders [52][60][63] Question: Private Market Fundraising Consistency - The company has seen substantial growth in private markets, with a diverse range of fundraising sources contributing to a more consistent flow of capital [70][75] Question: European Market Trends - Management has not observed significant reallocations from U.S. to European managers impacting their second-quarter numbers, but they are monitoring the situation closely [80][84]

Group 1 - Toast, Inc. (NYSE: TOST) is gaining traction in the fintech sector but is currently trading at high valuations [1] - Block, Inc. (NYSE: XYZ) has not recovered from its all-time highs and is trading at lower valuations [1] - Julian Lin, a financial analyst, focuses on identifying undervalued companies with long-term growth potential and strong management [1] Group 2 - The investment group led by Julian Lin emphasizes stocks with a high probability of delivering significant alpha compared to the S&P 500 [1] - The investment strategy combines growth-oriented principles with strict valuation criteria to enhance the margin of safety [1]

Group 1 - Airbnb has underperformed the broader market over the last several years, which may present a potential opportunity for value-minded investors [1] - The valuation proposition for Airbnb has improved significantly, indicating a more attractive investment case [1] - The company is expanding into offering additional services, which could enhance its growth prospects [1] Group 2 - Julian Lin, a financial analyst, focuses on finding undervalued companies with secular growth potential [1] - The investment strategy emphasizes strong balance sheets and management teams in sectors with long growth runways [1]

Group 1 - The article discusses Julian's investment strategy, focusing on identifying stocks with a high probability of delivering significant alpha compared to the S&P 500 [1] - Julian emphasizes a combination of growth-oriented principles and strict valuation criteria to enhance the margin of safety in investments [1] - The investment group offers features such as exclusive access to high-conviction stock picks, comprehensive research reports, real-time trade alerts, and macro market analysis [1] Group 2 - Julian Lin is characterized as a financial analyst who specializes in finding undervalued companies with long-term growth potential [1] - The approach involves targeting companies with robust balance sheets and effective management teams within sectors that have substantial growth opportunities [1]

Group 1 - Nvidia Corporation is experiencing a resurgence in the bull market, reaching new highs despite facing export control limitations to China due to tariff disputes [1] - The company is part of an investment strategy that focuses on stocks with a high probability of delivering significant alpha relative to the S&P 500, combining growth principles with strict valuation hurdles [1] - The investment approach emphasizes finding undervalued companies with strong balance sheets and management teams in sectors with long-term growth potential [1]

Core Insights - The Trade Desk (TTD) has demonstrated significant growth in both revenue and earnings, continuing its trend of "beat and raise" performance despite macroeconomic challenges [1] Group 1: Company Performance - TTD is experiencing rapid growth in its top and bottom lines, indicating strong operational performance [1] - The company is led by a management team that focuses on delivering substantial alpha relative to the S&P 500 [1] Group 2: Investment Strategy - The investment approach emphasizes finding undervalued companies with long-term growth potential, supported by strong balance sheets and management [1]

Group 1 - ClearPoint Neuro's stock has faced pressure due to soft first-quarter results and additional capital raising, but strong consumables growth indicates underlying business progress [1] - System placements are highlighted as a positive aspect of ClearPoint's business performance [1] - Narweena, an asset manager, focuses on identifying market dislocations and believes in achieving excess risk-adjusted returns through secular growth opportunities in markets with barriers to entry [1] Group 2 - Narweena's research emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon [1] - The aging population, low population growth, and stagnating productivity growth are expected to create new investment opportunities, differing from past trends [1] - Many industries may experience stagnation or secular decline, potentially improving business performance due to decreased competition [1] Group 3 - The economy is increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1] - Richard Durant, the leader of Narweena, has a strong educational background in engineering, finance, and an MBA, along with passing the CFA exams [1]

Group 1 - American Tower Corporation (NYSE: AMT) has experienced a challenging 2024 due to volatility in international operations and domestic consolidation churn [1] - The company is now finding its footing again, indicating a potential recovery phase [1] Group 2 - The article highlights the investment approach of Julian Lin, who focuses on identifying undervalued companies with secular growth potential [1] - Lin emphasizes the importance of strong balance sheets and management teams in sectors with long growth runways [1]

Group 1 - W. P. Carey (WPC) has experienced stagnation in stock performance for over a decade, which may deter some investors, but the company has undergone significant transformation [1] - The company is now positioned as a potential investment opportunity due to its strong balance sheet and management team, focusing on sectors with long-term growth potential [1] - Julian Lin, a financial analyst, emphasizes the importance of identifying undervalued companies with secular growth, which aligns with WPC's current strategy [1] Group 2 - The investment approach combines growth-oriented principles with strict valuation criteria, aiming to provide a margin of safety for investors [1] - Exclusive features offered include access to high-conviction stock picks, comprehensive research reports, real-time trade alerts, and macro market analysis [1]

Group 1 - Prologis, Inc. (NYSE: PLD) is recognized as one of the faster-growing companies in the typically slow-growth REIT industry [1] - The company continues to deliver solid financial results despite ongoing tariff uncertainties [1] - Prologis has shown a significant recovery after years of underperformance [1] Group 2 - The investment strategy focuses on identifying undervalued companies with long-term growth potential [1] - The approach emphasizes strong balance sheets and effective management teams in sectors with extended growth opportunities [1]