10 Best Financial Stocks To Buy According to Hedge Funds

04. KKR & Co. Inc. (NYSE:KKR)

Number of Hedge Fund Holders: 87

In a recent development, KKR & Co. Inc. (NYSE:KKR) has approached WPP, the UK-listed advertising group, about increasing its majority control of financial communications firm FGS Global, according to sources familiar with the matter. WPP, which currently holds about 55% of FGS, rejected the recent offer to boost KKR & Co. Inc. (NYSE:KKR) stake, which valued FGS higher than a previous deal in 2023 but was deemed inadequate by some insiders. Negotiations may continue with a potential for KKR & Co. Inc. (NYSE:KKR) to revise its offer upwards. Philipp Freise of KKR & Co. Inc. (NYSE:KKR) led the initial investment in FGS, and Goldman Sachs is advising WPP on transactions. WPP, KKR, and FGS are also exploring plans to potentially list FGS in the next two years. WPP’s broader portfolio includes firms like Burson and GroupM, and it holds a stake in Kantar. FGS, a strategic advisory and communications consultancy with a global presence, was formed through the merger of several companies controlled by WPP. It generated approximately $450 million in revenue last year.

In Q1 2024, the count of hedge funds holding stakes in KKR & Co. Inc. (NYSE:KKR) rose to 87 from 68 in the previous quarter, based on Insider Monkey’s database of 920 hedge funds. These stakes collectively amount to around $5.81 billion in value. Alexis Fortune’s Blacksheep Fund Management emerged as the largest stakeholder among these hedge funds during this period.

Vulcan Value Partners stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its first quarter 2024 investor letter:

“KKR & Co. Inc. (NYSE:KKR), a large alternative investment manager, continues to execute well and was a material contributor for the second consecutive quarter. The company reported increased fundraising during the quarter and macro factors are becoming more favorable for the firm. We continue to believe that KKR is well-positioned for the future.”