5 Best Stocks to Buy for Long Term According to ValueAct Capital

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

ValueAct Capital’s Stake Value: $1,321,735,000

Percentage of ValueAct Capital’s 13F Portfolio: 18.18%

Number of Hedge Fund Holders: 54

KKR & Co. Inc. (NYSE:KKR) is a private equity and real estate investment firm specializing in direct and fund of fund investments. In the first quarter of 2022, ValueAct Capital raised its stakes in KKR & Co. Inc. (NYSE:KKR) by 3%, bringing them to $1.32 billion. ValueAct Capital is the top shareholder in KKR & Co. Inc. (NYSE:KKR) and as of March 31, owns over 22.60 million shares of the company which represents 18.18% of its 13F portfolio.

As of May 19, Deutsche Bank analyst Brian Bedell has a $79 price target and a Buy rating on KKR & Co. Inc. (NYSE:KRR).

As of July 5, KKR & Co. Inc. (NYSE:KKR) has a trailing twelve-month PE ratio of 10.57 and is offering a forward dividend yield of 1.33%.

At the close of Q1 2022, 54 hedge funds held stakes in KKR & Co. Inc. (NYSE:KKR) worth $4.04 billion. This is compared to 55 positions in the previous quarter with stakes worth $5.53 billion.

Third Avenue Management, an investment management firm, recently published its “Real Estate Value Fund” first-quarter 2022 investor letter in which it mentioned KKR & CO. Inc. (NYSE:KKR), here is what they said:

“During the quarter it was reported that US private equity firm KKR (NYSE:KKR) purchased the Japanese fund management platform MC-UBSR, a joint venture between Mitsubishi Corp and UBS (NYSE:UBS) that manages two public Japanese REITs with US $15bn of total assets. The reported purchase price of US $2bn equated to more than 10% of assets under management and 32x trailing EBITDA. The high price paid for MC-UBSR surprised Fund Management. Such high pricing is likely a function of the difficulties foreign asset management firms face when attempting to build a platform in Japan from the ground up, and their frustration given Japan’s standing as one of the most liquid institutional real estate investment markets globally. When looking at the MC-UBSR transaction, the Fund’s investments in Tosei Inc and Nomura Real Estate Holdings are prime examples of the disconnect between public market pricing and private market pricing.”