Brookfield Asset Management Ltd. (BAM):
We came across a bullish thesis on Brookfield Asset Management Ltd. on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on BAM. Brookfield Asset Management Ltd.'s share was trading at $60.19 as of July 21st. BAM’s trailing and forward P/E were 44.26 and 42.55, respectively according to Yahoo Finance.
Brookfield Corporation delivered another strong quarter, with distributable earnings rising 27% to $1.55 billion, supported by record fee-related earnings of $698 million at a 57% margin and fee-bearing capital reaching $549 billion. Management successfully closed two $16 billion flagship funds and secured $25 billion of total commitments, further expanding its base of stable, compounding fees that are resilient to exit market cycles.
The company also agreed to acquire a majority stake in Angel Oak, an $18 billion mortgage credit platform, launching a new lending strategy that adds to its growing insurance and operating platforms. Insurance operations generated $430 million in earnings on $133 billion of assets, driven by $4 billion in new annuity sales and a 5.7% portfolio yield, which remains 180 basis points above the cost of funds.
Beyond the quarter, CEO Bruce Flatt underscored Brookfield’s alignment with three structural growth drivers—digitization, decarbonization, and deglobalization—where investable assets have multiplied dramatically over the past two decades, creating deepening opportunity sets that match the firm’s capabilities.
Critics often highlight Brookfield’s complexity, occasionally attracting short-seller scrutiny, but management views its multi-layered structure as a strategic advantage, enabling seamless capital allocation across listed partnerships, private funds, and insurance balance sheets to maximize risk-adjusted returns and capitalize on markets that reward asset-light managers with premium valuations.
This disciplined flexibility, which has driven approximately 19% annual capital compounding over three decades, continues to reinforce Brookfield’s positioning as a leading alternative asset manager with enduring growth potential and multiple levers for sustained value creation.
Previously, we covered a bullish thesis on Brookfield Asset Management Ltd. (BAM) by Soren Peterson in February 2025, which highlighted the company’s positioning to benefit from AI-driven infrastructure, credit expansion, and efficient capital-raising within the Brookfield ecosystem. The company’s stock price has depreciated approximately by 0.82% since our coverage, though the thesis remains intact. Stock Analysis Compilation shares a similar view but emphasizes recent record earnings and structural tailwinds driving long-term growth.
Brookfield Asset Management Ltd. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held BAM at the end of the first quarter which was 21 in the previous quarter. While we acknowledge the potential of BAM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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