Brookfield Asset Management Inc (A) (BAM.A.TO)

Over the years, this is proven to be an extremely astute investor. They have diversified into a lot of industries. Also, they are very good players within private equity markets. With this, you have to be a long-term player, but you can count on management liking to participate in capital gains and dividends over time.

An alternative asset manager. They invest their money and shareholders money into 4 general areas, property, infrastructure, renewables and private equity. If you buy this, you get global exposure. They have very attractive profiles. The company looks for assets that are long life and can provide stable cash flow streams. They tend to have a very strong balance sheet, as they like to buy sectors when they are out of favour. Dividend yield of 1.4%. (Analysts’ price target is $45.)

(Top Pick Aug 17/16, Up 17.91%) Very stable assets. They have a good track record of raising cash to pay for acquisitions. It is incredibly well managed. They have a contrarian bent as they are going to places like Brazil where they can work it out and get better returns after fixing a high quality asset.

A gem of a business. They’ve a lot of ownership through various entities, but what gets him excited is the actual asset management business. Over time, that has been a huge creator of wealth. This is the top of the pyramid where the fees flow and where the insiders have the greatest financial stake. You always want to follow the money. Lately there have been concerns about particular properties and you have to be comfortable with that. He would like to get this a little cheaper.

(Top Pick Apr 12/16, Up 19.95%) He thinks everybody has to own this one. They are brilliant managers and own assets all over the world. Their carried interest in all their funds is their hidden asset. They get a piece of the action of their funds where they invest their own money and that does not show up on their balance sheet.

An alternative asset manager with over $250 billion under management. They invest for their shareholders and clients into 4 general areas. Property, renewables, infrastructure and private equities. In those sectors, they are looking for real assets that have a long life that are able to generate a stable stream of cash flow. A very good track record of making money for shareholders and their clients. Globally diversified, so a good opportunity for Canadian investors to get a position in a company that has the relationships and resources to bid on large infrastructure projects. She likes that senior management owns a very high percentage of stock. Dividend yield of 1.4%. (Analysts’ price target is $45.)

A very complicated business. It is contractually driven. They build the company based on accumulating assets from institutional investors. The stock has been a fabulous performer. He thinks there is more upside.

(A Top Pick July 28/16. Up 10%.) The unique thing with this is that it is evolving a little into a company that really generates a lot of money off its fees. These are fees associated with publicly traded companies and they are going to be able to make a lot of money as those companies grow. In addition, they have about $250 billion in assets under management, where they can go out, raise money from investors and redeploy it.

This has done great and he is still modelling 10% compounded annual growth rate over the next couple of years. Not cheap, but still trading below its five-year average. Two things can really move the needle. If you are concerned that yields are going to be going up a little, this is a bit of a yield play. Also, they are priced off their US counterpart, and when the US$ starts to shrink, the Cdn$ starts to fade a little, which he thinks is what has happened. They have a lot of global operations, which will be a tailwind for them.

This company’s long-term game is infrastructure. They are looking to buy ports, toll roads, etc. that will give them a long-term return after tax of somewhere between 5% and 10%. What happens in the short term should be irrelevant for the investor as well as management. They are looking for investments that you can’t buy on the stock market, that are going to provide a consistent revenue stream, allowing them to take the cash and buying more assets.

The “old lid” of $48 is the level of support. It is at $49 now and could pull back to the $48 level again. On the chart, the highs and lows seem to be progressing, and the stock is consolidating. He would guess the breakout is still in place.

An extremely well-managed company over the years. They’ve been very, very astute investors over time. It is just a question of what you pay for it. He has a very small position in this.

It is being viewed as a REIT in many ways and being stagnated due to the rising rate environment. Management are do a good job in terms of rates of return on invested capital. He likes it as a long term core holding.

A lot of dual listed stocks have suffered on the Canadian side. There is nothing wrong with this. Until people get comfortable owning Canadian stocks again, this is the way it is going to be. They are making all the smart moves buying distressed assets in Brazil. The type of business you want to own. It will benefit from a pickup in global growth. Trading at a reasonable value to its NAV.

Brookfield Asset Management (BAM.A-T) or Brookfield Infrastructure Partners (BIP.UN-T)? He would always choose the parent, because the income flows up. As all the other Brookfield entities get bigger, the dividends flow up to the parent and you share in that wealth. The company is generating a lot of free cash. They have a plan by 2025 to have a ton of money that they are going to manage for other people, and will get a lot of carried interest, plus management fees, plus performance fees.