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KKR & Co. Inc. (KKR)
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Blackstone Inc. (BX)
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Ares Management Corporation Class A (ARES)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Q: Hi I’ve held BN for some time. I feel it’s an exceptional business with little price action. Are my expectations too high? fundamental concern?
Buy/hold/sell?
If selling is an option, what would you purchase as a replacement? Thanks
Buy/hold/sell?
If selling is an option, what would you purchase as a replacement? Thanks
5i Research Answer:
We agree that the quality of BN’s portfolio of businesses is highly valuable and unique. Investors could sleep well owning BN over the long term.
Although price action has been less positive than KKR, BX, or ARES. We think part of the reason is mainly because BN’s portfolio involved long-duration assets (renewable energy, real estate, etc.), that do have significant headwinds in the last few years. We think BN is still cheap relative to other asset managers and we would be comfortable owning it here.