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KKR & Co. Inc. (KKR)
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Blackstone Inc. (BX)
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Brookfield Corporation Class A Limited Voting Shares (BN)
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Brookfield Corporation Class A Limited (BN)
My questions this morning is partly Currency related as it applies to BN in particular and your best idea for a stock to add to the "ALTERNATIVES" portion of my overall family portfolio.
Q1. Would you kindly recommend your best two ideas for a stock to add in the "Alternatives" portion of my overall portfolio.
Q2. For my US$ Non Registered account, I was thinking of adding some BN to the existing holdings by buying BN in CDN$ and journaling the CDN$ stocks over to my US$ Non Registered account as I have done in the past.
That said and given that the CDN$ has dropped significantly of late and with perhaps more to go, would it be preferable at this time to simply purchase BN in my CDN$ account and leave the shares in the CDN$ Non Registered account with no journaling into the US$ account.
Thank you and I'll await your response.
Francesco
Alternative asset managers are expected to grow their assets under management (AUM) strongly over the next few years due to the tailwind of the transition from public investing to private investing by capital allocators. Most of these asset managers are expected to double their AUM by 2030. On the other hand, these companies have different approaches when it comes to capital allocation. BN and KKR focused on compounding capital by retaining the majority of their earnings, while BX, APO and ARES have focused on dividend growth.
For investors that are seeking long-term capital appreciation, we would go with BN, while we would side with ARES for investors who seek dividend growth. That being said, for the sole purpose of achieving high total returns, BN would be our top pick.
Given the weakness of the Canadian dollar recently, we don’t think it is an attractive time to use the Canadian dollar to convert to foreign currency at this point. Therefore, we think investors should buy BN in Canadian dollars for now.