American International Group (AIG) 4Q14: A Mixed but Refreshing Report

As we have seen in the past AIG’s earnings report [Source] this quarter was a mixture of good and bad news. It can be characterized as a quarter of “housekeeping” where the company takes hits in an effort to move forward with a clean slate. Reflecting on the new CEO Peter Hancock’s first two quarters at […]

Brookfield Property Partners (BPY) 2014 Good Result with More to Come

Brookfield Property Partners (BPY) reported a strong first full year of operations since it was spun off delivering a total return of 20.2% to unit holders for the year. Consisting of 15.2% in capital gains and 5.0% in distributions the total return compares very favorably to the S&P 500 total return including dividends of 14.0%. […]

Brookfield Infrastructure (BIP) Reports 2014 Results; Another Good Year

Brookfield Infrastructure Partners (BIP) reported results [Source] for full year 2014 with a total return of 12% compared to its target total return of 12-15%. In the past three and five years annualized returns were 20% and 26% respectively. Funds from Operations (FFO), BIP’s measure of cash flow, for the full year 2014 was $724 […]

Kinder Morgan, Inc. (KMI) Reports Solid 4Q14 Results

We bought Kinder Morgan Inc., in October, 2014 after they announced the consolidation merger bringing all of its publicly traded segments into one company. We expected good things from KMI and the 29% gain in 2014 was a nice start for the 2½ months we owned it. We are expecting more good things over the years and […]

Brookfield Infrastructure Partners (BIP) Thesis Update

In 2012 we estimated Brookfield Infrastructure Partners (BIP) [Source] would be $40-46/unit (share) in a 3-5 year time frame. The investment thesis is playing out and BIP has reached the lower end of the range a little early for a total return of 43% or about 16%/year. While investors may consider selling to lock in […]

Brookfield Asset Management (BAM) 3Q14 Update: Growing Platform of Opportunity

Brookfield Asset Management is a global alternative asset manager with $200 billion in Assets under Management (AUM). They own and operate real assets with a focus on: property, renewable power, infrastructure through listed entities and their asset management franchise. Capital is employed with a long term investment horizon, attention to the business cycles and a […]

Brookfield Property Partners (BPY) 3Q14 Update: Significant Upside Potential

Sometimes Mr. Market just doesn’t get it. BPY is a global premier property company with significant upside potential over the next five years. The upside is driven by initiatives underway in its existing asset base led by a top notch management team with a track record of outstanding risk adjusted returns. BPY was spun off from […]

Brookfield Infrastructure (BIP) 3Q14 Update: Strong Quarter to Underpin Future Returns

Brookfield Infrastructure (BIP) reported a strong 3Q14 [Source] and continues to execute well. Importantly management provides examples of what BIP is doing each quarter to continue their performance in the future through: “(i) the quality of our assets (ii) our track record of internally generated growth (iii) our global business development platform with local presence and (iv) our full […]

American International Group (AIG) 3Q14 Update

American International Group (AIG) reported 3Q14 earnings [Source]. This is CEO Peter Hancock’s first earnings report following his promotion effective September 1, 2014. He summarizes the quarter this way: “The solid third quarter results were driven by consistent performance across our businesses. While no one quarter is a trend, our risk-adjusted return focus could be […]

Kinder Morgan Inc. (KMI) Investment Thesis

The oil and gas industry relies on midstream companies with the infrastructure to transport large volumes of products. Houston based Kinder Morgan Inc. and its subsidiaries make up the largest midstream infrastructure company in North America with approximate 80,000 miles of pipelines and 180 terminals. The pipelines transport crude oil, natural gas, refined petroleum products, […]