Brookfield (BN):

We initially wrote up BN in Jan 2024, it has increased 70%, so why mention it again?

Firstly, we think the fundamentals are as good now as they were 2 yrs ago, with a >15% IRR on offer.

BN is not a well covered asset, investors ignore it due to perceived complexity, however the investment thesis is very simple:

With its historic focus on infrastructure, we consider BN as a beneficiary of on-shoring and increased infrastructure spend in the US.
Attractive structural tailwinds and growth opportunities in insurance and wealth management.
Brookfield Wealth Solutions is highly attractive at ~1x book, given 15% ROE.
BN is getting better at communicating its value proposition. Few investors are listening.
We see a 22% IRR over the next 2 years in our upside scenario, even if we assume a ~30% discount to SOTP value remains in place long term.

Potential Upside: $63 (+44%)

Sensible Downside: $40 (-10%)

Abacus Research LLP