Brookfield Asset Management, Inc. (USA) (BAM)

ACMPartnerslp (< 20) Submitted: 11/05/07 8:36 AM : Start Price: $35.77 BAM Score: -1.44

BAM is truly a best in breed asset management company focused exclusively on delivering value to shareholders by producing increasing, recurring high-quality free cash flow. Due to the recent misunderstanding relating to its potential exposure to the US housing markets, and a more recent (and just as ridiculous) sell-off after its Nov.2nd earnings announcement investors have the ability to purchase the pre-eminent wealth creation company in the market today for a significant discount to its intrinsic value.

Much like BRK or LUK, BAM is difficult to quickly summarize or catagorize. Their basic strategy is to opportunistically acquire and manage long lived assets, at reasonable prices, and manage them actively to maximize total returns. Asset classes include commercial and residential property, financial assets, power generation and transmission, timberlands, and renewable energy.

Considering the recent price of roughly 11x run rate free cash flow (half the multiple of asset managers of similar nature), which I believe is an absurdly low price considering their growth, cash flows, returns on equity, stable and high quality asset base, and inherent inflation and recession resiliency BAM represents an amazing opportunity at today's prices.

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