Author Topic: BAM - Brookfield Asset Management  (Read 511146 times)

John Hjorth

  • Hero Member
  • *****
  • Posts: 3136
Re: BAM - Brookfield Asset Management
« Reply #390 on: January 10, 2018, 01:06:47 PM »
Bam and all funds are down 3%ish... Small and probably a blip on the radar but is this what the market thinks of Brookfield if interest rates rise? Gets back to the earlier discussion on inflation

Yes, chrispy,

I've noticed that, too. I've started charting SAN vs BAM daily, to decide when to start doing a roll gradually. Approx. 8 percent relative change to the good side for me alone since the beginning of the year. [BAM down relative to SAN].
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai


John Hjorth

  • Hero Member
  • *****
  • Posts: 3136
Re: BAM - Brookfield Asset Management
« Reply #391 on: January 10, 2018, 01:17:38 PM »
Hi John,

I pulled $10-20m out of thin air, totally hypothetical.  My line of thinking was that if Berkshire Hathaway Energy has a team capable of analyzing the deals already (they have a strong M&A track record), it may be as easy as bringing in a small team to fill in the gaps they have operationally.  No idea what it would cost to lure them away, maybe $20m a year for a team of 4-5? 

I was just trying to illustrate that a good team would be well worth the investment if they can put billions to work.  Greg Abel's team are already working on tons of deals in the utility space, is a toll road/port that much different?

So, basically, I think we agree, Shane.

BAM management is - relatively - cheap - to us, as investors, because they appear to be good at what they are doing, combined with the scale of BAM in general. ["relativety - cheap" here in the meaning like "not Bigliari like", as an example].

The management options are a condition, that is, a condition for us for investing in BAM. This condition should be considered by us individually.

However we just need to try to stay factual with numbers here on CoBF.

That does not in any way guarantee against screw ups. Just look up my post a couple of days ago in the BAC topic about the BAC DTAs, where I ended up in the ditch in my efforts for calculating a number that was already out in open air from the company.
« Last Edit: January 10, 2018, 01:43:21 PM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

cubsfan

  • Hero Member
  • *****
  • Posts: 1957
Re: BAM - Brookfield Asset Management
« Reply #392 on: January 10, 2018, 01:18:08 PM »
Bam and all funds are down 3%ish... Small and probably a blip on the radar but is this what the market thinks of Brookfield if interest rates rise? Gets back to the earlier discussion on inflation

Well it's only one day in the markets. Longterm, future earnings look pretty good for BAM, when
you examine the important factors like carried interest, buildup in committed bookings that turn to revenue, length of contracts, increased fee revenue, and funds raised. Those are going to carry the day in the long run. Short term, interest rates will make some nervous.
« Last Edit: January 10, 2018, 01:20:08 PM by cubsfan »

villainx

  • Sr. Member
  • ****
  • Posts: 265
Re: BAM - Brookfield Asset Management
« Reply #393 on: January 10, 2018, 03:24:30 PM »
I was just trying to place some factual counterweight & mild pushback on Shanes post about a management compensation of 10 - 20 M, and giving my own confirmation bias about BAM some massage. I haven't made any calculations or studied it further, but to me it is evident that the total compensation to the BAM management team is in a different range.

No problem.  I follow the mainstream media's account of BAM and Flatt fairly closely, and compensation (high, low, fair or not) has not - to my memory - been an issue.  I like the company and management, but always welcome any criticism or closer look.

The few things to me is that it seems the board is fairly independent, and otherwise have no real motivation to enrich current management, other than for performance reason.

And ... I guess Flatt was not part of the long standing Brascan/BAM insider machine (which I always seem to be think there is one), and had to perform his way to the top.  I imagine Flatt like Michael J Fox in whatever romantic comedy it was where he was some kind of corporate whiz kid and had to convince the board/investors to help him.  BAM before Flatt was very different, and he rose up and led a complete transformation. I give him the benefit of the doubt - in terms of compensation - because he likely had to chart and prove it to management/board/long time stakeholders.

But again, level of compensation is significant with regards to whether to invest or not in a company like BAM.

John Hjorth

  • Hero Member
  • *****
  • Posts: 3136
Re: BAM - Brookfield Asset Management
« Reply #394 on: January 10, 2018, 04:44:18 PM »

I was just trying to place some factual counterweight & mild pushback on Shanes post about a management compensation of 10 - 20 M, and giving my own confirmation bias about BAM some massage. I haven't made any calculations or studied it further, but to me it is evident that the total compensation to the BAM management team is in a different range.


No problem. I follow the mainstream media's account of BAM and Flatt fairly closely, and compensation (high, low, fair or not) has not - to my memory - been an issue.  I like the company and management, but always welcome any criticism or closer look.

The few things to me is that it seems the board is fairly independent, and otherwise have no real motivation to enrich current management, other than for performance reason.

And ... I guess Flatt was not part of the long standing Brascan/BAM insider machine (which I always seem to be think there is one), and had to perform his way to the top.  I imagine Flatt like Michael J Fox in whatever romantic comedy it was where he was some kind of corporate whiz kid and had to convince the board/investors to help him.  BAM before Flatt was very different, and he rose up and led a complete transformation. I give him the benefit of the doubt - in terms of compensation - because he likely had to chart and prove it to management/board/long time stakeholders.

But again, level of compensation is significant with regards to whether to invest or not in a company like BAM.

villainx,

I'm really trying not to be rude here.

The first emphasize of mine in your post, ref. above: It is all about variant perceptions, that make the wheels go around here on CoBF. This is what differs CoBF from everything else out there. So please, let's analyze this *thing* in cooperation with the use of available sharing here on CoBF. [the *thing* that nobody else has paid attention to].

The second emphasize of mine in your post, ref. above : I have read somewhere [I don't have the specific source at hand right now], that Mr. Flatt did use leverage - a lot of it - to gain effective control of BAM, with his team.

I will find my source and post it here.

And again, don't guess, please.
« Last Edit: January 10, 2018, 04:47:10 PM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

racemize

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2767

villainx

  • Sr. Member
  • ****
  • Posts: 265
Re: BAM - Brookfield Asset Management
« Reply #396 on: January 10, 2018, 05:31:33 PM »
The second emphasize of mine in your post, ref. above : I have read somewhere [I don't have the specific source at hand right now], that Mr. Flatt did use leverage - a lot of it - to gain effective control of BAM, with his team.

I will find my source and post it here.

And again, don't guess, please.

I wouldn't think you are rude.  I'm here to get investment help, so I appreciate any insight.

I don't have any defense for your first emphasis, as my investment style is second hand, probably shoddy analysis - that would never be up to CoFB standards. I go more with feel, but dearly appreciate and learn from more rigid dives.

In regards to your second emphasis, I have never heard that.  Would like to hear more.  I don't mean to offer my guesses as proof, but it's more to test my guesses until I learn more. 

chrispy

  • Sr. Member
  • ****
  • Posts: 392
Re: BAM - Brookfield Asset Management
« Reply #397 on: January 25, 2018, 02:51:04 PM »
They are trying to monetize their graftech gains:

Brookfield-Backed GrafTech Files for IPO https://www.wsj.com/articles/brookfield-backed-graftech-files-for-ipo-1516384344

Jerry Capital

  • Full Member
  • ***
  • Posts: 108
Re: BAM - Brookfield Asset Management
« Reply #398 on: January 30, 2018, 10:05:05 PM »
Apologies if this has been posted before. It is from 2013 but this for lack of a better word, "short case", may help you understand $BAM

http://sirf-online.org/2013/03/11/paper-world-of-brookfield-asset-management/
Follow me on Twitter @JerryCap

villainx

  • Sr. Member
  • ****
  • Posts: 265
Re: BAM - Brookfield Asset Management
« Reply #399 on: January 31, 2018, 01:37:53 PM »
Apologies if this has been posted before. It is from 2013 but this for lack of a better word, "short case", may help you understand $BAM

http://sirf-online.org/2013/03/11/paper-world-of-brookfield-asset-management/

This comes up now and then, and has already upthread.  But aside from some folks finding BAM confusing organizationally to begin with, the more nefarious claims have - yet - to be born out.