10 Best Asset Management Stocks to Buy According to Hedge Funds

6. Brookfield Asset Management Inc. (NYSE:BAM) 

Number of Hedge Fund Holders as of Q3 2024: 37

Brookfield Asset Management Inc. (NYSE:BAM) is an asset management company focused on real estate, renewable power, infrastructure venture capital and private equity assets. It manages a range of public and private investment products and services for institutional and retail clients. It has produced average compound annual returns of 18% over the past 30 years.

The impressive track record persisted in the third quarter, and the company delivered remarkable results on November 14, 2024. Record cash earnings from base businesses were characterized by a 19% increase in distributable earnings at $1.3 billion or $0.80 a share. The growth was attributable to a 14% growth in fee-related earnings in the asset management business. The acquisition of American Equity Life, higher annuity sales, and solid investment performance helped Wealth Solutions’ earnings double from the same quarter last year.

Brookfield Asset Management Inc. (NYSE:BAM)’s growth metrics and long-term prospects are solid. Over the next five years, the company anticipates increasing its earnings per share by more than 20% annually. The increase should stem from sustained growth in the wealth solutions and asset management divisions,

Brookfield Asset Management Inc. (NYSE:BAM) also anticipates generating a total of $47 billion in free cash flow, or $30 per share, over the next five years. The increase should provide it with ample funds to invest in increasing shareholder value.

Madison Investors Fund stated the following regarding Brookfield Asset Management Ltd. (NYSE:BAM) in its Q3 2024 investor letter:

“During the quarter, we sold our stake in Brookfield Asset Management Ltd. (NYSE:BAM), a leading alternative asset manager. In late 2022, we received shares in the company following its spin-off from Brookfield Corporation. We admire Brookfield Asset Management’s owner-operator culture and long-term track record of generating impressive investment performance. However, during the quarter, we sold our stake to fund other opportunities. We continue to be optimistic on the outlook for Brookfield Asset Management and have indirect exposure to the company though our stake in Brookfield Corporation, which remains Brookfield Asset Management’s largest shareholder.”