Is Brookfield Asset Management Ltd. (BAM) Attractively Valued?

Baron Funds, an investment management company, released its “Baron Real Estate Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 3.61% (Institutional Shares) in the quarter compared to a 1.46% decline for the MSCI US REIT Index (the REIT Index) and a 6.13% gain for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as Brookfield Asset Management Ltd. (NYSE:BAM). Brookfield Asset Management Ltd. (NYSE:BAM) is a subsidiary of Brookfield Corporation that provides alternative asset management services. The one-month return of Brookfield Asset Management Ltd. (NYSE:BAM) was 5.28%, and its shares gained 46.74% of their value over the last 52 weeks.  On August 1, 2025, Brookfield Asset Management Ltd. (NYSE:BAM) stock closed at $59.81 per share, with a market capitalization of $96.455 billion.

Baron Real Estate Fund stated the following regarding Brookfield Asset Management Ltd. (NYSE:BAM) in its second quarter 2025 investor letter:

“Brookfield Asset Management Ltd. (NYSE:BAM) is the asset management arm that was spun out from Brookfield Corporation in December 2022. Brookfield was a contributor to performance due to continued strong fundraising in a volatile macro and geopolitical backdrop along with improving margins and fee-related earnings growth. Brookfield Asset Management is a leading global alternative asset manager with approximately $1 trillion of assets under management across renewable power & transition, infrastructure, private equity, real estate and credit. We had previously written about and had consistently believed that the captive asset manager was undervalued when it was housed within the broader Brookfield organization. The tax-free spin-out to existing holders simplified the organization and allowed shareholders to access a steady earnings stream underpinned by base management fees (versus highly variable performance fees) that have a high degree of growth visibility. The market has come to our view with the shares of Brookfield Asset Management trading in-line or a slight premium to other alternative asset managers. We had argued for a premium valuation given our view that Brookfield Asset Management would be able to grow its fee-related earnings per share in the upper teens for the foreseeable future. We continue to believe shares are attractively valued given the multi-year earnings outlook for the Company.”

Cautious Investors Unloads Shares of Brookfield Asset Management (BAM)

A skyline of modern office towers built with investments from the alternative asset manager.

Brookfield Asset Management Ltd. (NYSE:BAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Brookfield Asset Management Ltd. (NYSE:BAM) at the end of the first quarter which was 21 in the previous quarter. While we acknowledge the risk and potential of Brookfield Asset Management Ltd. (NYSE:BAM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BROOKFIELD ASSET MANAGEMENT LTD. (NYSE:BAM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Brookfield Asset Management Ltd. (NYSE:BAM) and shared the list of best fast growth stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.