BAM - Better Buy: Brookfield Asset Management vs. TerraForm Power
At first blush, there doesn't seem to be much in common between an asset management company like Brookfield Asset Management (NYSE: BAM) and renewable power owner and operator TerraForm Power (NASDAQ: TERP). But they are joined, indirectly, at the hip. Read on to learn how they're related and which one might make a better fit for your portfolio.
Brookfield Asset Management is often referred to as an alternative asset manager. That's because its focus for the last hundred years or so has been on putting money to work in the infrastructure space. For a long time, it did this for itself and private clients. More recently, it has started a collection of master limited partnerships that invest in infrastructure, including Brookfield Infrastructure Partners, Brookfield Renewable Partners, and Brookfield Property Partners. A few years ago, Brookfield Renewable Partners took a majority stake in TerraForm Power. Thus, Brookfield Asset Management, indirectly, controls TerraForm Power.
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