Several Factors Contributed to the Performance of Brookfield Asset Management Ltd. (BAM) in Q3

Aristotle Capital Management, LLC, an investment management company, released its “International Equity Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. During the quarter global equity markets reached record highs. The MSCI ACWI Index surged 6.61%, while the Bloomberg Global Aggregate Bond Index rallied 6.98%. Aristotle Capital International Equity returned 10.97% gross of fees (10.82% net of fees) in the third quarter outperforming the MSCI EAFE Index’s 7.26% return, and the MSCI ACWI ex USA Index’s 8.06% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Aristotle Capital International Equity Strategy highlighted stocks like Brookfield Asset Management Ltd. (NYSE:BAM), in the third quarter 2024 investor letter. Brookfield Asset Management Ltd. (NYSE:BAM) is a real estate investment firm specializing in alternative asset management services. The one-month return of Brookfield Asset Management Ltd. (NYSE:BAM) was 7.86%, and its shares gained 50.20% of their value over the last 52 weeks. On October 14, 2024, Brookfield Asset Management Ltd. (NYSE:BAM) stock closed at $49.13 per share with a market capitalization of $20.578 billion.

Aristotle Capital International Equity Strategy stated the following regarding Brookfield Asset Management Ltd. (NYSE:BAM) in its Q3 2024 investor letter:

“Brookfield Asset Management Ltd. (NYSE:BAM), one of the world’s largest and most diversified private market investors, was the top contributor for the period. Several key factors contributed to this success, which are linked to both catalysts currently underway and the company’s long-term strategic positioning. In the near term, the company reported significant fundraising strength, with over $68 billion in inflows during the second quarter of 2024. This capital influx was bolstered by an expanded credit platform, positioning Brookfield to return substantial cash to shareholders through more than $800 million in share buybacks so far this year. Additionally, Brookfield advanced its energy transition strategy, particularly through its renewable power and infrastructure businesses. A notable development was the company’s agreement to acquire a majority stake in Neoen, a leading global renewables platform operating in Australia, France and the Nordics. Neoen specializes in solar, wind and energy storage projects, sectors that are critical to the global shift toward clean energy. Looking at Brookfield from a long-term perspective, the company is uniquely positioned to capitalize on its scale, expertise and diverse business model. Its ability to attract large amounts of capital, combined with its experience in managing high-quality assets, gives Brookfield a competitive edge in both the traditional and renewable energy markets. Brookfield’s long-standing reputation as a successful owner-operator and its ability to quickly act on opportunities further strengthen our outlook for the company.”

A skyline of modern office towers built with investments from the alternative asset manager.

Brookfield Asset Management Ltd. (NYSE:BAM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Brookfield Asset Management Ltd. (NYSE:BAM) at the end of the second quarter which was 17 in the previous quarter. While we acknowledge the potential of Brookfield Asset Management Ltd. (NYSE:BAM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.