Hulbert Rating Explained for Australian Investors (2025 Guide)

In the world of investment analysis, the Hulbert Rating stands as a unique tool for evaluating the reliability of financial newsletters and gurus. But what does it mean for Australians in 2025—and how can you use it to cut through the noise and make smarter investment decisions?

What is the Hulbert Rating?

The Hulbert Rating, originally developed by Mark Hulbert in the United States, assesses the performance of investment newsletters and their stock recommendations. Unlike most rating systems, Hulbert focuses on the real-world, risk-adjusted returns achieved by following a newsletter’s picks, rather than relying solely on hypothetical portfolios or back-tested results.

• Performance-Driven: The rating is based on actual investment returns, net of transaction costs and subscription fees.

• Accountability: Newsletters are tracked over years, providing a transparent record of success (or failure).

• Independence: The rating is not influenced by advertising or sponsorship, aiming for objectivity.

While the Hulbert Rating system is most prominent in the U.S., its methodology offers valuable lessons for Australian investors keen on separating expert advice from empty promises.

Why Hulbert Ratings Matter in 2025

The Australian investment landscape is evolving rapidly in 2025. With the rise of social media ‘finfluencers’, an explosion of online investment newsletters, and new regulatory scrutiny from ASIC, it’s more important than ever to evaluate the credibility of financial advice sources. Hulbert-style analysis—focusing on track records and risk-adjusted returns—offers a much-needed reality check.

• ASIC’s 2025 Reforms: The Australian Securities & Investments Commission (ASIC) has introduced tighter regulations on the promotion of financial products, requiring clearer disclosure of performance data and risk metrics.

• Rise of Independent Analysis: As traditional media loses ground to online platforms, demand for independent performance verification is surging.

• Volatile Markets: With the ASX experiencing heightened volatility amid global uncertainty in 2025, past performance data (adjusted for risk) is more relevant than ever.

Hulbert Ratings provide a model for how investors can assess whether a newsletter’s track record holds up under scrutiny—especially in a crowded, unpredictable marketplace.

How Australian Investors Can Use Hulbert Ratings

Even though the official Hulbert Ratings service focuses on U.S. newsletters, the core principles can be applied by Australians evaluating local or global investment advice. Here’s how:

• Demand Transparency: Before subscribing to any investment newsletter or taking advice from a ‘finfluencer’, ask for their documented, risk-adjusted performance over several years—not just cherry-picked wins.

• Scrutinise Methodology: Check if returns are calculated after transaction costs and taxes. Are the recommendations practical for a typical retail investor?

• Look for Consistency: A strong Hulbert Rating rewards consistency, not just one-off lucky picks. Look for advisers with a proven, repeatable process.

• Use Third-Party Verification: Some Australian platforms are beginning to adopt similar independent verification models—such as Morningstar’s Analyst Ratings and the ASX’s own performance reports.

For example, if an Australian stock newsletter claims a 20% annual return, check whether that figure includes all costs and is substantiated by third-party data. ASIC’s 2025 guidelines empower consumers to demand this level of detail.

The Bottom Line: Smarter Investing with Hulbert-Inspired Analysis

In a digital era where investment advice is everywhere, the Hulbert Rating’s emphasis on accountability, risk-adjusted performance, and transparency offers a powerful filter. While the original Hulbert Ratings are U.S.-centric, their principles can help Australians avoid costly mistakes and identify genuinely reliable sources of investment insight.

With new regulatory protections in place and more tools for independent verification, 2025 is shaping up to be a year where informed investors can thrive—provided they know what to look for.