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Brookfield Infrastructure Partners L.P. (BIP.UN)
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Brookfield Corporation Class A Limited (BN)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM)
Q: These 3 names get a lot of very positive comments from investment mangers, portfolio managers, etc. 5i included. But unless I am missing something I just do not get it. Take BN , for example.which is touted as a growth stock, yet is about the same price as it was about 4 years ago. Not much growth there. BIP..un is the same price as it was around 5 years ago. So many positive comments. Yet the moment stocks see a set back as we have just had, these stocks get hit hard even though most money mangers ‘love, the companies. There has to be rationale for this disconnect, but it escapes me.
5i Research Answer:
Any examination of Brookfield returns needs to remember to include the multiple spin offs the company does. BAM.A split into BN and BAM. BIP.UN created and spun off BIPC. When the value of these other entities are included, the results change significantly. And this is only recent spin offs. Historically, the group has done many more. All, in, if one includes these, the group has created substantial shareholder value over the past 15 years.