Billionaire Prem Watsa’s 10 Stock Picks With Highest Potential

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

Number of Hedge Fund Holders: 83

Fairfax Financial Holdings’ Stake: $3.48 Million

Analysts’ Upside Potential as of April 21: 35.92%

KKR & Co. Inc. (NYSE:KKR) is a global investment firm that manages assets across various asset classes, including private equity, credit, infrastructure, real estate, and capital markets. It also generates returns by making strategic investments and providing capital solutions. It is one of billionaire Prem Watsa’s top holdings in financial services owing to its aggressive acquisition strategy.

KKR & Co. Inc. (NYSE:KKR) plans to strengthen its prospects in the financial services sector with the acquisition of OSTTRA for $3.1 billion. The acquisition should offer post-trade offerings across interest rates, FX, credit, and equity asset classes, away from central exchanges. It has already agreed to acquire Frankfurt-listed IT services provider Datagroup in a deal valued at $508.32 million.

In addition, KKR & Co. Inc. (NYSE:KKR) is among global asset managers bidding for a district cooling business owned by Abu Dhabi’s Multiply Group. PAL Cooling Holding (PCH) is a unit that specializes in delivering chilled water via insulated pipes to cool offices and industrial and residential buildings. The aggressive acquisition drive comes on the heels of KKR delivering impressive Q4 2024 results that beat analysts’ expectations with adjusted earnings per share of $1.32 and revenue of $3.3 billion. On April 15, HSBC analyst Vikram Gandhi upgraded KKR & Co. Inc. (NYSE:KKR) from Hold to Buy, lowering the price target to $119 from $170 due to a revised valuation approach. Gandhi saw improved risk-reward after a share price decline and removed the premium previously assigned to KKR due to economic uncertainty and moderated growth projections.