Why Brookfield Asset Management Stock Slumped 10.1% in October

Shares of Brookfield Asset Management (NYSE: BAM) slumped 10.1% in the month of October, according to data provided by S&P Global Market Intelligence. Interestingly, the alternative asset manager stock has recouped all of its October losses, some already within the first week of November. That performance has outpaced the market, indicating investors in Brookfield perhaps saw an opportunity after the stock's October drop. That's a reasonable argument given that October didn't bring up any nasty shocks to justify the stock's fall.

Brookfield shares were holding up strong until the second half of October, which is also when it made a couple of big deals.

First was its partnership with American Equity Investment Life Holding (NYSE: AEL), under which Brookfield agreed to reinsure $10 billion worth of American Equity's liabilities while acquiring 19.9% stake in the company. Although Brookfield agreed to pay a substantial premium for the stake, the company is optimistic about the deal.

Source Fool.com