Yesterday, Brookfield Asset Management (BAM) acquired 62% of Oaktree Capital (OAK). I've held Oaktree for some time now and am disappointed I have to give it up. However, it is possible (to an extent) to roll-over shares into the acquirer. But what is this Brookfield Asset Management anyway? It is a really good Canadian private equity firm who have their own approach that is centered on a "real asset" strategy. Is it a good investment firm? Well, I thinnk so and Wikipedia agrees:
The annual compound stock market return of Brookfield Asset Management has been 18% over the past 20 years. This has led Brookfield to become one of the leading investment managers of alternative assets globally with $350 billion of assets under management in 30 countries. Brookfield has a market capitalization of $45 billion and close to $100 billion of permanent capital when including its four NYSE listed partnerships that it controls.
Returns over 20 years say something but what are the odds they do well in the future? Bruce Flatt gave this excellent talk at Google where he lays out the investment philosophy of the firm clearly. My takeaway has always been there's a good chance what they are doing keeps working. Howard Marks doesn't sell out to just anybody:
Check out the Special Situation Investing report if you are interested in uncorrelated returns. We look at special situations like spin-offs, share repurchases, rights offerings and M&A events like Oaktree Capital. Ideas like this are especially interesting in the current late stages of the economic cycle.