Brookfield Asset Management Ltd. (BAM): A Bull Case Theory

We came across a bullish thesis on Brookfield Asset Management Ltd. on The Investing Ledger’s Substack by Volodymyr. In this article, we will summarize the bulls’ thesis on BAM. Brookfield Asset Management Ltd.'s share was trading at $50.69 as of January 29th. BAM’s trailing and forward P/E were 32.70 and 25.71, respectively according to Yahoo Finance.

Brookfield Asset Management Ltd. is a private equity firm specializing in acquisitions and growth capital investments. BAM stands out as a high-quality, asset-light alternative asset manager with a long history as an owner-operator of tangible assets. Originating in 1899 as a Brazilian utility operator, BAM evolved under Bruce Flatt into a global, diversified asset manager that deploys third-party capital alongside its own balance sheet. Unlike peers such as Blackstone, KKR, and Apollo, BAM combines operational expertise with financial management, employing over 250,000 personnel to actively manage assets.

Its business spans five verticals: Renewable Power Transition, Infrastructure, Real Estate, Private Equity, and Credit, with fee-bearing capital growing from $290 billion in 2019 to $538 billion in 2024. This growth has driven Fee-Related Earnings (FRE) from $966 million to $2.46 billion and Distributable Earnings (DE) from $1.1 billion to $2.36 billion over the same period, reflecting a shift toward more stable, fee-driven earnings. BAM’s 2025–2030 strategy focuses on scaling existing verticals, expanding Credit via the full acquisition of Oaktree, and tapping new markets, including AI infrastructure, retail, and the 401(k) sector, aiming for $1.2 trillion in fee-bearing capital and $5.9 billion in DE by 2030.

While Q3 2025 results show strong FRE growth, DE has been impacted by higher interest expenses and lower investment income, highlighting potential execution and interest rate risks. Valuation analysis suggests limited upside from the current stock price, trading at a premium 32x DE, though BAM remains well-positioned to capitalize on secular megatrends such as decarbonization, AI infrastructure, and deglobalization. Its operational moat, diversified growth engines, and long-term capital deployment make it a compelling long-term investment, particularly if market conditions allow entry at a more attractive valuation.

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 robust fundraising. The company's stock price has depreciated by approximately 16.47% since our coverage. The thesis still stands as BAM leverages its operational moat. Volodymyr shares a similar perspective but emphasizes BAM’s historical evolution, FRE and DE trends, and 2025–2030 growth strategy.

Brookfield Asset Management Ltd. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held BAM at the end of the second quarter which was 38 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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.