Federated Hermes, Inc. (FHI) Stock Price & How to Invest
Last updated July 2026
Short answer
You can invest in Federated Hermes (NYSE: FHI) by buying shares or fractional shares at any major broker, through a financial-sector or asset-manager ETF that holds it, or as one holding in a thematic basket. Federated Hermes is a Pittsburgh-based investment manager best known as one of the largest U.S. money market fund providers, and it earns money mainly from management fees charged on its assets under management across money market, fixed income, equity, and alternative strategies.
FHI stock price
As of 2026-07-24, Federated Hermes, Inc. (FHI) last closed at $57.92, up 17.6% over the past year. Over the past 52 weeks it has traded between $47.30 and $60.04.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Federated Hermes, Inc.'s investor relations page. Walnut is informational, not investment advice.
What does Federated Hermes, Inc. (FHI) do?
Federated Hermes, Inc. (NYSE: FHI) is a global investment manager headquartered in Pittsburgh, Pennsylvania, formed from the combination of Federated Investors and the UK-based Hermes Investment Management. As of the first quarter of 2026 the firm managed a record ~$907 billion in assets, split roughly into money market funds (about 75% of managed assets), fixed income (about 11%), equity (about 11%), alternatives (about 2%), and multi-asset (under 1%). Its money market business, with a record ~$685 billion in assets, makes Federated one of the largest cash-management providers in the country, serving institutions, financial intermediaries, and individual investors.
The firm makes money primarily from management and advisory fees calculated as a percentage of the assets it manages, so revenue rises and falls with both asset levels and the mix between higher-fee (equity, alternatives) and lower-fee (money market) products. Because money market funds dominate the asset base, Federated's earnings are closely tied to the level of short-term interest rates and to cash allocation trends: high rates and elevated demand for cash have driven money market assets to records, while sustained rate cuts can trigger fee waivers and slow the growth of that franchise. The investment picture blends a durable, scaled cash-management engine with a longer-running effort to grow equity, fixed-income, and alternative strategies (including through the Hermes side and acquisitions) and to return capital through a steadily rising dividend and buybacks.
What's driving Federated Hermes, Inc. (FHI)?
1. Scaled money market franchise.
Money market assets reached a record ~$685 billion in Q1 2026, up about 7% year over year, and represent roughly 75% of Federated's managed assets. Elevated short-term interest rates and strong investor demand for cash-like yield have made this a large, sticky, fee-generating base. This franchise gives Federated meaningful scale in a business where scale and distribution relationships matter.
2. Growth in equity and alternatives.
Equity assets rose about 25% year over year to roughly $101 billion in Q1 2026, reflecting market gains and inflows into higher-fee strategies. Because equity and alternative products carry higher fee rates than money market funds, growth in this mix can lift revenue and margins more than headline asset growth alone. The Hermes side adds international distribution and sustainability-oriented and private-markets capabilities.
3. Capital return to shareholders.
Federated raised its quarterly dividend by about 12% to $0.38 per share in early 2026, marking its 113th consecutive quarterly dividend, and has an established record of share repurchases. Total revenue grew about 13% year over year in Q1 2026 to roughly $479 million, and diluted EPS was $1.27. A relatively capital-light, fee-based model supports consistent cash returns.
4. Record assets under management.
Total managed assets hit a record ~$907 billion in Q1 2026, up about 8% year over year, spanning money market, fixed income, equity, alternative, and multi-asset strategies. A diversified product lineup across cash, bonds, stocks, and private markets gives the firm multiple avenues for flows. Continued records in AUM directly support the fee revenue that drives earnings.
What are the risks to Federated Hermes, Inc. (FHI)?
Federated's heavy concentration in money market funds ties a large share of its earnings to short-term interest rates: sustained rate cuts can compress money market yields and force fee waivers, which reduce net revenue, as the firm experienced during past near-zero-rate periods. Asset flows are cyclical and competitive, with much larger rivals (BlackRock, Fidelity, Vanguard, JPMorgan, Goldman Sachs, Charles Schwab) pressuring fees across both cash and long-term products. Market downturns lower equity and fixed-income assets and therefore fees, and performance fees and carried interest can be lumpy. Regulatory changes to money market fund rules (floating NAVs, liquidity fees, and redemption gates) have historically shifted assets between fund types and could do so again. Finally, as a mid-cap manager (market capitalization around $4 billion in mid-2026), the stock can be more volatile than larger diversified financials.
How is Federated Hermes, Inc. (FHI) valued? (approximate, JULY 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Federated Hermes, Inc.'s investor relations page or your broker.
- Total Assets Under Management (Q1 2026): ~$907 billion (record, up ~8% YoY)
- Money Market Assets (Q1 2026): ~$685 billion (record, ~75% of AUM)
- Total Revenue (Q1 2026): ~$479 million (up ~13% YoY)
- Diluted EPS (Q1 2026): ~$1.27
- Quarterly Dividend: ~$0.38 per share (raised ~12% in early 2026)
- Market Capitalization: ~$4 billion (mid-2026)
Federated Hermes earns fees as a percentage of assets under management, so revenue tracks both the level of managed assets and the mix between higher-fee equity or alternatives and lower-fee money market products. Because money market funds make up about three-quarters of assets, results are unusually sensitive to short-term interest rates and cash demand. Figures are approximate and based on the company's Q1 2026 disclosures.
Who competes with Federated Hermes, Inc. (FHI)?
Large diversified asset managers
BlackRock, Fidelity, Vanguard, Franklin Templeton, Invesco, and T. Rowe Price compete across money market, fixed income, equity, and alternative products, often with far greater scale and distribution reach than Federated Hermes.
Money market and cash-management leaders
Fidelity, Vanguard, JPMorgan Asset Management, Goldman Sachs Asset Management, and Charles Schwab run some of the largest money market fund complexes and compete directly with Federated's core cash-management franchise on scale and fees.
Alternatives and specialty managers
In private markets, sustainability-focused, and higher-fee strategies, Federated (including its Hermes business) competes with firms such as Ares Management and other specialist and alternative-asset managers seeking similar institutional mandates.
How to invest in Federated Hermes, Inc. (FHI)
There are three common ways to get FHI exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so FHI sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where FHI fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on Federated Hermes, Inc. (FHI)
Federated Hermes is a mid-cap asset manager whose earnings are anchored by a very large money market franchise (about 75% of managed assets), which makes its results sensitive to short-term interest rates, cash flows, and fee waivers, alongside a smaller but growing equity and alternatives business.
More on Federated Hermes, Inc. (FHI)
Whether FHI is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is FHI a buy?, and where the stock could go from here in the FHI stock forecast.
For income investors, whether FHI pays a dividend and how the payout looks is covered in does FHI pay a dividend?
Build a basket around FHI with Walnut
Use Federated Hermes, Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What does Federated Hermes do?
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Federated Hermes is a global investment manager that runs money market, fixed income, equity, alternative, and multi-asset funds and strategies for institutions, financial advisers, and individual investors. It earns fees based on the assets it manages, which reached a record of about $907 billion in early 2026.
Why is Federated Hermes so focused on money market funds?
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Money market funds make up roughly 75% of Federated's managed assets, about $685 billion in Q1 2026, making it one of the largest U.S. cash-management providers. This scaled franchise is a core earnings driver but also ties results closely to short-term interest rates and cash demand.
How does Federated Hermes make money?
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It primarily charges management and advisory fees calculated as a percentage of assets under management. Revenue depends on both the level of assets and the mix, since equity and alternative products carry higher fee rates than money market funds. It also earns occasional performance fees and carried interest.
How did Federated Hermes perform in its most recent quarter?
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In the first quarter of 2026, Federated reported record assets under management of about $907 billion, total revenue of roughly $479 million (up about 13% year over year), and diluted EPS of about $1.27, aided by higher money market and equity assets.
Does Federated Hermes pay a dividend?
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Yes. Federated Hermes pays a quarterly dividend, which it raised by about 12% to roughly $0.38 per share in early 2026, marking its 113th consecutive quarterly dividend. The firm has also historically repurchased shares as part of returning capital.
What are the main risks of investing in FHI?
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Key risks include heavy reliance on money market funds (which exposes earnings to falling short-term rates and fee waivers), competition from much larger managers, cyclical asset flows, market downturns that reduce fee-generating assets, regulatory changes to money market rules, and mid-cap stock volatility.
Who are Federated Hermes' main competitors?
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It competes with large diversified managers like BlackRock, Fidelity, Vanguard, Franklin Templeton, and Invesco, with money market leaders like JPMorgan, Goldman Sachs, and Charles Schwab, and with alternatives and specialty firms such as Ares Management in higher-fee strategies.
How can I invest in Federated Hermes?
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FHI trades on the New York Stock Exchange, so you can buy shares or fractional shares through any major brokerage, gain exposure through a financial-sector or asset-manager ETF that holds it, or include it as one position in a thematic basket. Walnut is not an investment adviser, and this is general information, not a recommendation.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Federated Hermes, Inc.'s investor relations page or your broker before making investment decisions.