Calculating Assets under Management

Drawing upon more than two decades of financial leadership experience, Scott Bushley oversees operations at Boston’s Granite Point Capital. Scott Bushley previously functioned as the head of business operations at BNY Mellon Investment Management, a multi-affiliate investment manager comprised of nearly $2 trillion in total assets under management (AUM).

AUM refers to the combined market value of investments managed by a person or entity on behalf of his/her or its clients and can be used to help evaluate the success of a particular company or investment. The means of calculating AUM varies among financial institutions, as some limit it to discretionary investment management funds while others include cash, mutual funds, and bank deposits.

In order for a client’s portfolio to be counted toward total AUM, it must fit the U.S. Securities and Exchange Commission’s definition of a securities portfolio, meaning that at least 50 percent of its total value must come from securities like cash or private fund assets. Precious metals and real estate do not count as securities.

The number of stock units multiplied by its most recent market price determines asset value. For instance, if a portfolio contains 200 units of Nike stock that, at the time of calculation, is trading at $110, the value of that particular stock would equal $22,000. This formula is used for every asset in the portfolio. The resulting figures are then added together to determine total value of that particular portfolio. The sum of the value of all portfolios is the total AUM.

Massachusetts’ Unique Purgatory Chasm State Reservation

Respected in the Boston community, Scott Bushley serves as the finances and operations partner of an established hedge fund. A skiing and hiking enthusiast, Scott Bushley enjoys exploring outdoor destinations in New England and beyond.

One of the most unique local spots is Sutton, Massachusetts’ Purgatory Chasm State Reservation, which encompasses a chasm that extends for a quarter mile through granite walls that rise as high as 70 feet. This feature originates from glacial meltwater that, after getting dammed up toward the end of the last Ice Age circa 12,000 BCE, was suddenly released with great pressure and force.

Reaching the chasm’s entry point involves a relatively steep descent that requires rock and boulder scrambling skills and steady footing. The deep cuts in the rock, which are associated with various Native American and colonial legends, include a particularly narrow passage known as Fat Man’s Misery. Another rivet, where a tomahawk cut into the granite according to myth, is called the Devil’s Corn Crib. The surrounding area offers numerous trails and picnic areas, as well as ponds and blueberries when in season.