Oakmark Funds, an investment management company, released its “Oakmark Global Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 16.4% compared to a 9.8% return for the MSCI World Index. The fund declined 16.8% for the calendar year ended 2022, compared to an 18.1% decline for the MSCI World Index. About 70% of the fund’s performance was from 51% of the portfolio that was invested outside the United States. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Oakmark Funds highlighted stocks like KKR & Co. Inc. (NYSE:KKR) in its Q4 2022 investor letter. Headquartered in New York, New York, KKR & Co. Inc. (NYSE:KKR) is a real estate investment and private equity firm. On January 10, 2023, KKR & Co. Inc. (NYSE:KKR) stock closed at $50.13 per share. One-month return of KKR & Co. Inc. (NYSE:KKR) was 1.58%, and its shares lost 30.51% of their value over the last 52 weeks. KKR & Co. Inc. (NYSE:KKR) has a market capitalization of $57.972 billion.
Oakmark Funds made the following comment about KKR & Co. Inc. (NYSE:KKR) in its Q4 2022 investor letter:
“KKR & Co. Inc. (NYSE:KKR) is one of the largest alternative asset managers in the world, overseeing $496 billion in assets under management (AUM). Approximately 80% of the company’s AUM is held under capital commitments that are eight years or longer, resulting in a highly predictable management fee revenue stream. KKR has also grown AUM at a mid-teens rate over the past decade, largely due to the company’s success in leveraging its well-established brand and its existing relationships to expand into new strategies and geographies. Today, 22 of KKR’s 28 strategies are less than 10 years old, and we believe many of these have considerable runway for future growth. Furthermore, we think the market is undervaluing KKR due to the company’s large balance sheet investments and the near-term volatility of its performance fees. We estimate that KKR’s investments are worth ~$17/share today, or 36% of its current market capitalization, which is considerably higher than its peers. After adjusting for these factors, KKR trades at a high-single-digit multiple of our forward earnings estimate. In fact, shares trade at just 16x our estimate of fee earnings, and that is without ascribing any value to carried interest earnings or to KKR’s insurance unit. We find this a very attractive valuation for a business with KKR’s growth outlook and return profile.”
KKR & Co. Inc. (NYSE:KKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held KKR & Co. Inc. (NYSE:KKR) at the end of the third quarter, which was 51 in the previous quarter.
We discussed KKR & Co. Inc. (NYSE:KKR) in another article and shared 1 Main Capital’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 15 Companies That Test on Animals in 2022
- 25 Biggest Companies Headquartered in New York
- 15 Most Progressive Companies in the US
Disclosure: None. This article is originally published at Insider Monkey.
