Strive Asset Management, which encourages companies to focus on profits and not ESG, now has $500 million under management. It is unknown what asset base level it will need to make so it posts a profit. The surge in assets remains impressive, whatever Strive’s internal financials are.
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Strive has in place or will launch seven exchange-traded funds (ETF). Eighty percent of the Strive assets under management (AUM) is in one ETF, the Strive U.S. Energy ETF. Rather than own environmentally conscious energy companies, its holding is mostly in those that have recently made huge profits but tend to get low ESG scores. These include Exxon Mobil, Chevron and ConocoPhillips. They make up well over 40% of the ETF’s assets. As oil prices have risen, stocks in these companies have surged. Because fossil fuel energy stocks have done so well, the ETF’s price has risen $17 in the past three months
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The second largest ETF by assets is the Strive 500, which has $78 million of AUM. Its primary holdings are mega-cap stocks, including Apple, Microsoft, Amazon and Alphabet. Because of the tech company stock price fallout in the past month, this ETF has performed about the same as the S&P 500.
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Presumably, since Strive gets 0.41% of AUM, its current revenue run rate is about $2 million. It may not be able to make money at that level, so the move toward $1 billion AUM is critical.
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