10 Best Asset Management Stocks to Buy According to Hedge Funds

2. KKR & Co. Inc. (NYSE:KKR) 

Number of Hedge Fund Holders as of Q3 2024: 66

KKR & Co. Inc. (NYSE:KKR) is a private equity and real estate investment firm. It specializes in acquisitions, leveraged buyouts, management buyouts, and special credit situations. The global asset management firm has demonstrated strong performance and strategic growth initiatives. Consequently, the stock is up by 94% year to date, outperforming the overall market.

KKR & Co. Inc. (NYSE:KKR)’s financial performance has been robust, with the company reporting strong earnings for the third quarter on October 24, 2024. Adjusted net income grew more than 50% on record fees-related earnings and total operating income. Revenues came in at $4.79 billion compared to $3.3 billion generated in the same quarter last year.

In an effort to boost growth and increase its market share, KKR has been aggressively pursuing strategic initiatives. The $2.1 billion purchase of a high-rise apartment portfolio from Lennar/Quarterra, at an estimated 5.3% cap rate, was a noteworthy step in this direction. KKR has also made a calculated move in the Japanese tech industry by acquiring more than one-third of the shares in Fuji Soft Inc., a software developer based in Japan.

As the British utility Thames Water looks to recapitalize in the face of difficulties, KKR & Co. Inc. (NYSE:KKR) is also in talks about a potential share sale. A $50 billion partnership has also been established between KKR and Energy Capital Partners to accelerate the construction of infrastructure for the expanding cloud computing and artificial intelligence industries. This partnership addresses the growing demand for data centers amid the artificial intelligence race.