Brookfield Asset Management (BAM) to Spin Off its Asset Management Business

·2 min read

SaltLight Capital Management, an investment management company started in 2015, released its second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned -1.21% in the second quarter. The fund performed in line with the market movements. It increased the investments in companies that it believes will generate long-term substantial wealth creation. For more information on the fund’s top picks in 2022, please check its top five holdings.

The fund invested in stocks like Brookfield Asset Management Inc. (NYSE:BAM) and discussed it in the letter. Brookfield Asset Management Inc. (NYSE:BAM) is an investment management company based in Toronto, Canada. The stock of Brookfield Asset Management Inc. (NYSE:BAM) closed at $52.97 per share on August 10, 2022. One-month return of Brookfield Asset Management Inc. (NYSE:BAM) rose to 22.53% and its 12-month return dropped to -6.33%. Brookfield Asset Management Inc. (NYSE:BAM) has a market capitalization of $87.416 billion.

Here is what SaltLight Capital Management specifically said about Brookfield Asset Management Inc. (NYSE:BAM) in its Q2 2022 investor letter:

“In our letter last quarter, we talked in detail about our investment in Brookfield Asset Management Inc. (NYSE:BAM) and a potential value-unlock transaction. BAM also operates a large holding company trading at a substantial discount. However, management has a better track record in unlocking value.

In our letter we wrote:

During the quarter, management announced that they’re considering splitting their ‘asset heavy’ investments and the ‘asset light’ asset management business. Nothing has been crystalised, but this could be an additional value unlock. In May, BAM confirmed that they are indeed going through with a transaction to spin off a portion of their 'asset light' asset management business by the end of the year(Click here to read more)"

Managing assets, Asset Management

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Brookfield Asset Management Inc. (NYSE:BAM) is not on the list of  30 Most Popular Stocks Among Hedge Funds. As per our database, Brookfield Asset Management Inc. (NYSE:BAM) was held by 35 hedge fund portfolios at the end of the first quarter, which was 29 in the previous quarter.

We discussed Brookfield Asset Management Inc. (NYSE:BAM) in another article and shared SaltLight Capital Management’s views about the company in the previous quarter. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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