Investment Q&A

Q: Hello 5i Team,

I have read your previous responses on Alternative Asset Management providers and particularly your thoughts on BN.

The above list of companies are likely to fall significantly in this down market and I was wondering at what prices would you buy and which are your favorites now.

Cheers and thank you in advance.

PK

Q: Hi 5i team,

What are your thoughts and do you have suggestions (names) on investing in a Public private equity company as a means to curb some of the volatility. Thank you as always.

Q: What's going on with these companies? Ever since I bought all of them about a month ago, they are al tanking!!!

Thanks! Austin

Q: ARES vs. APO:

APO's P/E ratio (18.6) is significantly lower than ARES's (90). Is there a reason for this discrepancy? Which one is a better buy?

In the past three years, both stocks have surged nearly 300%, marking a substantial increase. Any comments or insights on this?

Thanks.

Q: I own APO, BX and KKR in TFSA & Cash accounts = Mistake??? Should be in RIF??? Thinking of selling all and buying BIZD in my RIF. Does this make sense? Thanks!

Q: At 71, I'm getting a little scared of the Market (Wednesday), and I'm 100% in equities mostly Tech. I'll keep the Mag 7 but want to sell the rest and move to safety in these Large Mgt. Firms. Please LMK if you agree with my strategy and can you kindly Rank them? Thanks!

Q: Private Equity seems to be taking off and I want to protect my Tech gains. I still hold the Mag 7 but getting rid of others. Do you agree with this strategy, and can you recommend others? Thanks!

Q: Greetings 5i,

Ive held APO for several years now and have enjoyed a nice run. However the position is becoming overweight and I may begin trimming. Today I read that APO will be added to the SP500 Dec23 and as far as I understand, when companies are added to indexes they experience an increase in valuation as being listed on Indexes require ownership by ETFs that reflect that INDEX. In this case would you wait and capture some upside with this listing or trim now?

Cheers!

Q: Please rank BN, KKR, BX and APO, in order of preference and what would be a good entry point.

Q: I would like to invest in private equity and credit stocks. I came across below US and CDN stocks. Which one would you recommend that I should buy or unless you have better options. Plus is there an ETF that you would recommend.

Please give brief description and why you consider as Buy.

CDN: BN, ONEX
USA: KKR, BX, ARES, APO



Please deduct credit as appropriate.

Thanks for the great service.

Q: Good Morning. I need to trim my holdings portfolio down to a more manageable number. My portfolio is pretty well balanced. From the list of NTR,PBH, DIS,RCI.B, ADN,GE, FCX,WMB,GS,CVX, CAT,LYB and APO how would you rank them with 1 being the best and 5 the least favoured. Please take as many credits as you need. Thanks Peter

Q: Hi group ...Can you explain the difference between private equity and private credit. Also how to patriciate in this sector and what is your top 3 picks to start positions?...Thanks for your help

Q: Hello,

Can you please compare each of these companies using the valuation metric you believe to be the most appropriate given their business models?

Thank you

Q: Using total return over the medium term (3-5 yrs) as your goal what would be your top 3 picks in the Publicly Traded Private Equity sector excluding BN and BX?
Secondly, where would BN and BX rank among your picks?
Thirdly, what %age of a portfolio would you allocate to this sector?
Thank you, Hugh

Q: There has been lately a significant advertising pressure regarding alternative investments . What is your opinion on these? Which Canadian companies could be considered as being sort of companies with an alternative investments focus which would fulfill such type of investment for a small independent retail Canadian investors? Would you also recommend some US names with a similar focus. Thank you.

Q: Dear Peter and team,

Thank you for answering my question earlier about non-correlated assets. Very clear and helpful. For Private equity you had chosen BX as an option (also VXX) and every subscriber knows how much you like BN/BAM :) (I must say that I am tickled by the number of folks in both print and TV media, not just you, are enamored with Mr. Bruce Flatt. A true Bromance!!)

My question is how come not many mention anything about similar European Private equities firms which are publicly traded. Google search yielded CVC capital, EQT, Ardian, Apax...

Which PE firm from the EU would you consider as a reasonable complement for BX/BLK/BAM . Feel free to add any other PE firm that you think has potential.
Many thanks in advance.

Mano

Q: We have BN (full position) and BAM in Canadian $ accounts. 5i appears to consider these very good choices for part of a portfolio foundation. Do you have similar choices to recommend that we could put in our US$ accounts (TFSA, RRIF) ?
Thank you, as always.

Q: Current thoughts on Apollo for a 2 year hold. I recognize their revenue and cash flow streams are quite diversified. What sectors are most important to their success?

Q: Greetings 5i,

I own both of these and have done well. I consider them long term holds. Bruce Flat has stated last quarter he sees 20% growth per year over several years. Apollo has merged with Athene (insurance /annuities etc). My question is, in an inflationary and subsequent rising interest rate environment, will these two companies face significant headwinds? Have we seen the “top” in the asset management class short to medium term? Please explain why or why not. Deduct as needed.

Cheers!

Q: Hello your thoughts on APO