Q: BAM's share price has popped up quite a bit in the last few weeks. Any reason for this? And is the valuation getting stretched, to the point of trimming one's holdings? Thanks much for your excellent service
5i Research Answer:
BAM has announced a few investments/partnerships leading to the run up. BAM invested $1.1B in Infinium (private company) and finalized a $1.5B partnership with Castlelake (an alternative investment manager. BAM is trading at about 31x forward earnings which is approaching all-time high levels. We do not think trimming is necessary yet as BAM should be able to grow earnings nicely in the future. We would say Hold.