Shares of WisdomTree Investments (NasdaqGM: WETF) rose 5% in early trading Friday after the ETF provider said its first-quarter net income rose more than 600% from the year-ago period.
The firm has benefited from the biggest story of 2013 in ETFs: WisdomTree Japan Hedged Equity (NYSEArca: DXJ).
The specialized ETF is designed to invest in Japanese stocks but hedges its currency exposure to the yen. The fund has rallied 30% so far this year as Japan desperately tries to stoke inflation and weaken its currency.
DXJ is the best-selling ETF of 2013, raking in more than $5 billion.
Meanwhile, WisdomTree shares were up 78% so far this year through Thursday. [WisdomTree ETF Assets Grow as Shares Rally]
On Friday the company said its first-quarter net income rose to $7.9 million from $1.1 million in the same quarter of 2012.
“WisdomTree’s net inflows of $5.9 billion represented our best quarter yet and fueled a meaningful acceleration in our organic growth in 2013,” said Chief Executive Jonathan Steinberg. “At $27 billion in assets and the fifth largest U.S. ETF sponsor today, WisdomTree has reached an exciting point in our development.”
Noted former hedge fund manager Michael Steinhardt is WisdomTree’s chairman. [WisdomTree Japan ETF Creates ‘Windfall’]
Next page: $100 billion in assets goal
CEO Steinberg during a conference call Friday said the firm’s ETF assets are up 50% year to date to a record $27.6 billion.
He noted that DXJ, the Japan ETF, has become a globally recognized security.
“In 2009, WisdomTree stated that we had a longer term stretch goal of becoming a top-five player in the U.S. ETF market. I am excited to say that we recently achieved that goal. I am truly very proud of our recent accomplishments,” Steinberg said.
“But I am not satisfied. We need to continue to look forward, so we have established a new longer term stretch goal. We have laid the foundation to become a $100 billion asset manager,” the CEO added.
“So that is our new vision, $100 billion in assets under management. I feel strongly that going from zero to $25 billion in assets will prove more difficult than going from $25 billion to $100 billion,” he predicted. “That said, we still have plenty of hard work ahead of us.”
WisdomTree Investments