Alphyn Capital Management, an investment management firm, released its first-quarter 2023 investor letter. The same can be downloaded here. The fund returned 7.5% (net) in the first quarter compared to a 7.5% return for the S&P500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Alphyn Capital Management highlighted stocks like Brookfield Asset Management Ltd. (NYSE:BAM) in the first quarter 2023 investor letter. Headquartered in Toronto, Canada, Brookfield Asset Management Ltd. (NYSE:BAM) is an alternate asset management company. On April 26, 2023, Brookfield Asset Management Ltd. (NYSE:BAM) stock closed at $32.25 per share. One-month return of Brookfield Asset Management Ltd. (NYSE:BAM) was 0.69%, and year-to-date its shares gained 12.49%. Brookfield Asset Management Ltd. (NYSE:BAM) has a market capitalization of $12.784 billion.
Alphyn Capital Management made the following comment about Brookfield Asset Management Ltd. (NYSE:BAM) in its Q1 2023 investor letter:
“On December 9th, Brookfield spun out its management company, now carrying the “Brookfield Asset Management” name and the BAM ticker. This spin-off aimed to offer investors direct access to an “asset-lite” alternatives manager with its robust, contracted, and growing cash flows generated through steady fees applied to significant assets under management. 83% of Brookfield Asset Management Ltd. (NYSE:BAM)’s $418 billion fee-paying AUM is long-term or perpetual. BAM expects to grow its $2.1 billion in fee-related earnings (FRE) by 15-20% per annum for the next five years as it continues to raise and deploy funds into attractive segments of the alternatives sector, including infrastructure (a vast multi-trillion-dollar market that complements Brookfield’s unique global operating strengths), renewables, and direct lending. Moreover, as an asset-lite business, BAM can distribute 90% of these earnings as dividends.
Through the spin, Brookfield aimed to emphasize the value of the asset management franchise as a standalone entity, acting as a catalyst for re-rating. While Brookfield initially guided towards an $80 billion valuation for BAM (with a $20 billion free float representing the 25% owned by shareholders), the market has thus far only assigned an approximate value of $52 billion to the manager (with a $13 billion free float). BAM trades at a relatively full multiple, around 25x Price-to-FRE (fee-related earnings, a P/E equivalent measure for asset managers) at the upper end of comparable company valuations.”
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Brookfield Asset Management Ltd. (NYSE:BAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Brookfield Asset Management Ltd. (NYSE:BAM) at the end of the fourth quarter which was 0 in the previous quarter.
We discussed Brookfield Asset Management Ltd. (NYSE:BAM) in another article and shared the list of best asset management stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2023 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.
