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Brookfield Renewable Partners L.P. (BEP.UN $46.60)
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Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC $57.50)
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Brookfield Corporation Class A Limited Voting Shares (BN $56.93)
Q: Hi 5i
I am tempted to sell BEP.UN to buy more BN. BEP.UN is about 1% of port., BN about 1.7%. BEP.UN is at 52 week high and often pulls back to under 40 from here. BN is well off its high so going forward, I see it with better total return potential. Have held both for many years. I am starting to hear rumblings of private equity/private credit/mark to market problems, which make me a little hesitant on BN. Also the BEPC/BEP.UN discrepancy has narrowed somewhat so I'm not sure how this factors in. I look forward to your thoughts.
Thanks, Greg
I am tempted to sell BEP.UN to buy more BN. BEP.UN is about 1% of port., BN about 1.7%. BEP.UN is at 52 week high and often pulls back to under 40 from here. BN is well off its high so going forward, I see it with better total return potential. Have held both for many years. I am starting to hear rumblings of private equity/private credit/mark to market problems, which make me a little hesitant on BN. Also the BEPC/BEP.UN discrepancy has narrowed somewhat so I'm not sure how this factors in. I look forward to your thoughts.
Thanks, Greg
5i Research Answer:
We think the move makes sense and still maintains some exposure to BEP through BN. BN has been weak on concerns with private equity but we see BNs exposures as a bit different than a lot of the companies that are in the spotlight. Regardless, it might take some time for the narrative to shift but with some patience and as a bit of a rebalancing move, we think this shift can make sense.