Keith Dalrymple of Dalrymple Finance makes the short case on Brookfield Infrastructure Partners (BIP). At the heart of this thesis, Keith posits that BIP is selling equity units at multiples of NAV, enabling its external manager to extract immense fees while eroding unitholder value. He believes to maintain this illusion of financial strength, BIP carries its assets at inflated values, while cash flows are insufficient to cover partnership distributions. Ultimately, Keith thinks that the only off-ramp from BIP’s high cash expense structure is a much lower unit price.

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