Brookfield Corporation (BN) Reported Strong Growth in Q2

Alphyn Capital Management, an investment management firm, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Master Account of the fund returned 12.4% net in the second quarter compared to 10.9% for the S&P 500 Index. As of the second quarter of 2025, the top ten holdings accounted for approximately 65% of the portfolio, and approximately 17% of the portfolio was held in cash. Market conditions remained volatile in Q2 due to ongoing tariff developments and evolving interest rate projections. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Alphyn Capital Management highlighted stocks such as Brookfield Corporation (NYSE:BN). Brookfield Corporation (NYSE:BN) is an alternative asset manager and REIT/Real Estate Investment Manager firm. The one-month return of Brookfield Corporation (NYSE:BN) was 7.97%, and its shares gained 42.26% of their value over the last 52 weeks. On July 10, 2025, Brookfield Corporation (NYSE:BN) stock closed at $63.96 per share with a market capitalization of $98.095 billion.

Alphyn Capital Management stated the following regarding Brookfield Corporation (NYSE:BN) in its second quarter 2025 investor letter:

"Brookfield Corporation (NYSE:BN) machine kept humming in the quarter. Distributable earnings climbed 27 % to $1.55bn. Fee related earnings hit a record $698m at a 57 % margin, while fee bearing capital reached $549bn. Management closed two new $16bn flagship funds and raised roughly $25bn of total commitments, further enlarging the base of steady, compounding fees that do not depend on exit markets. Brookfield also agreed to buy a majority stake in Angel Oak, an $18bn mortgage credit platform that will seed a new lending strategy. Insurance and operating platforms continue to extend Brookfield’s runway. Insurance generated $430m of earnings on $133bn of assets, backed by $4bn of new annuity sales and a 5.7 % portfolio yield that sits 180 bp above the cost of funds.

Looking beyond the quarter, Bruce Flatt recently re-emphasized the three structural tailwinds Brookfield is leaning into, digitization, decarbonization, and deglobalization. Many of the investable assets tied to these themes did not exist at scale two decades ago, yet they now represent expanding opportunity sets that play directly to Brookfield’s strengths. Critics often seize on the firm’s complexity, a trait that can attract the occasional short-seller attack, but Mr. Flatt maintains the same architecture lets management shift capital among listed partnerships, private funds, and the insurance balance sheet wherever risk-adjusted returns look best and wherever the market is willing to ascribe value (such as with high multiples for asset-light managers). That flexibility has helped Brookfield compound capital at roughly 19 % annually over the past 30 years."

Brookfield Corporation (NYSE:BN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Brookfield Corporation (NYSE:BN) at the end of the first quarter, which was 37 in the previous quarter. While we acknowledge the potential of BN 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.

In another article, we covered Brookfield Corporation (NYSE:BN) and shared Hardman Johnston Global Equity Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 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.