Greenhaven Road Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The fund returned approximately -9% net for the fourth quarter, bringing the full-year net return to approximately 3%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Greenhaven Road Capital, in its Q4 2021 investor letter, mentioned KKR & Co. Inc. (NYSE: KKR) and discussed its stance on the firm. KKR & Co. Inc. is a New York, New York-based private equity company with a $41.6 billion market capitalization. KKR delivered a -4.48% return since the beginning of the year, while its 12-month returns are up by 75.96%. The stock closed at $71.16 per share on January 31, 2022.
Here is what Greenhaven Road Capital has to say about KKR & Co. Inc. in its Q4 2021 investor letter:
“KKR (KKR) – The path forward for KKR is well-defined. As a class, alternative assets will likely continue to grow at a double-digit rate as investors are attracted to the relative returns in a low interest rate world. The largest players should continue to attract a disproportionate share of AUM as they have the best fundraising platforms and carry the lowest career risk. Nobody gets fired for hiring KKR.
In the case of KKR, growth will likely be augmented by an expanding base of retail investors for whom KKR products have not been available historically. To seize this opportunity, the firm had quadrupled the headcount by focused on retail investors. As co-CEO Scott Nuttall noted, “We raised about $2 billion in the first 9 months of [2021] as these products have been launched. Candidly, we’re ahead of our expectations because there’s been a significant amount of interest, and we have been growing these relationships. And a lot of the team that we’ve hired is just showing up in the last 6 months, and there’s going to be many more here next year.”
KKR will also benefit from growth in products developed for insurance companies, in part aided by the closing of their recent acquisition of Global Atlantic. Co-CEO Nutall recently suggested that the “asset-based finance opportunity” will easily exceed $100B and should get closer to $200B. Given that fee-paying AUM is currently $350B, retail and insurance related products should move the needle even with lower fees…” (Click here to see the full text)
Research, Investment, Finance
Our calculations show that KKR & Co. Inc. (NYSE: KKR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. KKR was in 56 hedge fund portfolios at the end of the third quarter of 2021, compared to 54 in the previous quarter. KKR & Co. Inc. (NYSE: KKR) delivered a -8.36% return in the past 3 months.
In November 2021, we also shared Greenhaven Road Capital’s third-quarter 2021 views on KKR in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
