Alphyn Capital Management, an investment management firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Master Account of the fund returned 2.6% net in the fourth quarter compared to 2.4% for the S&P500 Index. As of fourth quarter 2024, the top ten holdings accounted for approximately 67% of the portfolio, and approximately 9% of the portfolio was held in cash. Despite the market cooling in December, the fund ended the year with a decent overall performance. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alphyn Capital Management highlighted stocks like KKR & Co. Inc. (NYSE:KKR) in the fourth quarter 2024 investor letter. KKR & Co. Inc. (NYSE:KKR) is an equity and real estate investment firm. The one-month return of KKR & Co. Inc. (NYSE:KKR) was -9.73%, and its shares gained 72.31% of their value over the last 52 weeks. On January 10, 2025, KKR & Co. Inc. (NYSE:KKR) stock closed at $140.93 per share with a market capitalization of $130.05 billion.
Alphyn Capital Management stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its Q4 2024 investor letter:
“KKR & Co. Inc. (NYSE:KKR) has been a meaningful investment this year, aided by the firm’s well-executed strategy of broad-based expansion. One clear driver is the continued growth of Assets Under Management (AUM). Thanks to its scale and flexibility, KKR can pursue opportunities in promising areas, even if they’re subject to the current AI hype cycle. Its Global Infrastructure division, for example, expanded AUM from $13 billion to $77 billion in just five years, targeting mobile infrastructure (towers), fixed-line networks (fiber-to-the home), and cloud, AI, storage, and data centers. Meanwhile, the Credit platform now exceeds $240 billion in AUM, with the Asset-Based Finance (ABF) segment alone surpassing $65 billion.
Moreover, KKR’s earnings profile is evolving through “Total Operating Earnings” (TOE), which reflects more stable and recurring revenue streams. An important piece of this is the firm’s core assets, roughly 18 long-term holdings expected to pay out significant dividends; management projects over $300 million in net dividends by 2026 and $600 million by 2028…” (Click here to read the full text)
A modern looking financial adviser sitting in front of a trading monitor, gesturing to a group of investors.
KKR & Co. Inc. (NYSE:KKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held KKR & Co. Inc. (NYSE:KKR) at the end of the third quarter which was 75 in the previous quarter. While we acknowledge the potential of KKR & Co. Inc. (NYSE:KKR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed KKR & Co. Inc. (NYSE:KKR) and shared Moon Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.