Billionaire Prem Watsa’s Top 15 Long-Term Stock Picks

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

Number of Hedge Fund Holders: 66

Fairfax Financial Holdings’ Stake: $3 million 

KKR & Co. Inc. (NYSE:KKR) offers alternative asset management as well as capital markets and insurance solutions. The following factors demonstrate the company’s promise as a solid investment. Firstly, the report for the third quarter of 2024 showed great results as Fee Related Earnings (FRE) and Total Operating Earnings (TOE) had their highest quarters in the company’s history. Reported Fee-Related Earnings were $1 billion in the quarter, showing an increase of 79% year-over-year. Additionally, Total Operating Earnings (TOE) was $1.3 billion in the quarter, up 71% year-over-year. These metrics reflect the company’s strong revenue growth and operational success. Secondly, KKR has entered into a binding agreement with the shareholders of Dawsongroup to acquire the Group. The acquisition will be made as part of KKR’s Global Climate strategy, dedicated to scaling net-zero solutions and transitioning and decarbonizing higher emitting assets, which closely aligns with Dawsongroup’s long-term sustainability-led ambitions. Moreover, KKR and Gulf Data Hub are committing to support over $5 billion of total investment to build out data centre capacity, supporting the significant rise in hyper-scale demand, AI and digital-focused national priorities across the Gulf countries.

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