Author Topic: BAM - Brookfield Asset Management  (Read 391518 times)

John Hjorth

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Re: BAM - Brookfield Asset Management Inc.
« Reply #1060 on: August 10, 2019, 05:54:24 AM »
Brookfield Asset Management - Press Release [August 8th 2019] : Brookfield Asset Management Reports Second Quarter 2019 Net Income and FFO.

[The quarterly shareholder letter by Mr. Flatt is released, too, but not the Quarterly Report 2019Q2 yet. Supplemental information is available, too.

It looks OK to me - still great business momentum.

Same situation with regard to available information for BPY, BPR & BIP, while BEP & BBU have released their quarterly financials. I wonder if this is normal? [I haven't noticed it before, less the first quarterly for BPR under the BAM umbrella last year.]

I've sent an e-mail to Linda Northwood, BAM IR, today about it.
« Last Edit: August 10, 2019, 06:02:08 AM by John Hjorth »
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ValueMaven

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Re: BAM - Brookfield Asset Management
« Reply #1061 on: August 10, 2019, 09:28:55 AM »
Hi John  - Would  you mind commenting a bit more?  I've always appreciated your insights re: BAM + subs.  One interesting point I think Mr. Flatt continues to build on is 1) FCF yield story and 2) returning capital back to shareholders via buybacks.  It really is amazing to me the amount of bolt-on acquisitions they are making even now !!

Sincerely,
ValueMaven

ValueMaven

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Re: BAM - Brookfield Asset Management
« Reply #1062 on: August 10, 2019, 01:47:40 PM »
Can someone tell me why the subs are still LPs?  Some of these companies are extremely cheap, and should convert to C'-Corps.  Which of the Sub's do you like the most?  For me its Business Partners

John Hjorth

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Re: BAM - Brookfield Asset Management Inc.
« Reply #1063 on: August 12, 2019, 08:32:44 AM »
Reply to me from Linda Northwood - just received, & ref. my e-mail to her mentioned above :

Quote
Hi John,

We are filing our Q2 Interim Report this Wednesday, and will be posting on our website later that day.

In the interim, below is a link to our Supplemental Information book for Q2:

https://bam.brookfield.com/reports-and-filings/financial-reports/supplemental-information

With best regards,

Linda

- - - o 0 o - - -

Valuemaven,

Thank you for your posts and you kind words. I will get back to you here. BAM is rumbling inside my head nowadays - I just need some time to get some structure on my thoughts and try to do my best to elaborate.
”In the race of excellence … there is no finish line.”
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wisowis

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Re: BAM - Brookfield Asset Management
« Reply #1064 on: August 13, 2019, 03:07:13 PM »
https://business.financialpost.com/news/fp-street/brookfield-to-buy-57-in-genworths-canada-unit-in-1-81-bln-deal

Quote
Genworth Financial Inc. agreed to sell its Canadian unit to Brookfield Business Partners LP for $2.4 billion as it works to win regulatory approval for its acquisition by China Oceanwide Holdings Group Co.

Brookfield Business Partners LP will purchase 48.9 million shares, or a 57 per cent stake, at $48.86 apiece in Genworth MI Canada Inc., giving it majority control of Canada’s largest private-sector residential mortgage insurer. That’s a 5.1 per cent discount to Genworth MI’s closing price Monday.

John Hjorth

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”In the race of excellence … there is no finish line.”
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ValueMaven

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Re: BAM - Brookfield Asset Management
« Reply #1066 on: August 24, 2019, 07:35:45 AM »
Thank you John!! 

Would still love to get youre take on the current business, valuation etc -- honestly the more I study this - this is turning into my single favorite long-term investment idea....

Packer16

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Re: BAM - Brookfield Asset Management
« Reply #1067 on: August 24, 2019, 10:44:16 AM »
I like this complex also.  I like BIP best as this where BAM has the largest competitive advantage vs. others.  These advantages include having assets that can be accretive to potential purchases and relationships in EM they have developed.  This characteristic is not present in real estate or renewables.  BIP BTW is the group of funds the Brookfield has the largest % of 3rd-party (institutional) investors and the longest track record.  They also have beaten the LT expected returns vs. lower performance from BPY & BEP.

BAM is interesting but IMO is not cheap.  The value build-up assumes a 15x earnings & no discount on the underlying holding.  Holding companies like BAM rarely trade a NAV, so the question is how much of a discount should there be.  Based upon the current price the implied discount is about 25% not unreasonable given the corporate costs (equates to a 5% discount - corp costs caped at 10%) plus size of BPY & BRE vs. BIP & BBU.

Packer   
« Last Edit: August 24, 2019, 10:51:14 AM by Packer16 »

ValueMaven

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Re: BAM - Brookfield Asset Management
« Reply #1068 on: August 24, 2019, 10:56:01 AM »
Given all of the LPs (MLPs and P/E Firms) converting into C-Corps -- what benefit do the subs have at this point as LPs?  Why not convert

vince

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Re: BAM - Brookfield Asset Management
« Reply #1069 on: August 24, 2019, 01:43:03 PM »
I like this complex also.  I like BIP best as this where BAM has the largest competitive advantage vs. others.  These advantages include having assets that can be accretive to potential purchases and relationships in EM they have developed.  This characteristic is not present in real estate or renewables.  BIP BTW is the group of funds the Brookfield has the largest % of 3rd-party (institutional) investors and the longest track record.  They also have beaten the LT expected returns vs. lower performance from BPY & BEP.

BAM is interesting but IMO is not cheap.  The value build-up assumes a 15x earnings & no discount on the underlying holding.  Holding companies like BAM rarely trade a NAV, so the question is how much of a discount should there be.  Based upon the current price the implied discount is about 25% not unreasonable given the corporate costs (equates to a 5% discount - corp costs caped at 10%) plus size of BPY & BRE vs. BIP & BBU.

Packer

Not that I necessarily disagree with you, and I wouldn't bet a lot of money on it buy I think their is a very good probability that Bam outperforms each of the partnerships over time.  And the article made the best argument that I completely agree with....Bam's value is shifting more and more to the asset mgmt business, which in my mind is a better business model.  And the partnerships pay a pretty hefty price, on top of terms (the fees increase with total capitalization) that virtually guarantee a growing stream to Bam that isn't perfectly correlated to increased partnership value....at least that's how I understand it but wouldn't mind being shown that I'm wrong here.