Greenhaven Road Capital, an investment management company, released its third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the Fund returned 3% net, bringing YTD net returns to 30%. The firm believes its portfolio is getting a little stronger with each passing day despite the challenges. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Greenhaven Road Capital highlighted stocks like Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) in the third quarter 2023 investor letter. Headquartered in New York, New York, Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) is an equity and real estate investment firm. On October 31, 2023, Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) stock closed at $55.40 per share. One-month return of Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) was -6.10%, and its shares gained 11.99% of their value over the last 52 weeks. Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) has a market capitalization of $61.985 billion.
Greenhaven Road Capital made the following comment about Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) in its Q3 2023 investor letter:
“Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) – By market capitalization, KKR is the largest company that we own, and it is also the highest quality as one of the oldest and most reputable private equity firms. The industry is still growing on the order of 10% per year as large investors like endowments and pension funds continue to increase their allocations to private equity. KKR’s next legs of growth should come from their growing high-net-worth franchise (currently less than 5% of AUM) and offerings for insurance companies. KKR is rapidly growing both their base of investors and the slate of products that they offer, with funds ranging from a classic private equity fund to private credit to climate-focused investments. KKR has a durable business with almost half of the capital being “permanent.” Coupled with a bulletproof balance sheet, KKR can outlast us all. Despite this quality, shares trade at a discount to the market. In round numbers, at the end of the quarter, KKR traded at 12 times consensus 2024 earnings vs. 17 times for the overall market despite ending the second quarter with more than $20 per share in net cash and total investments. The rate of growth may moderate or accelerate with changes in interest rates and GDP growth rates, but the steady march up should continue. Next year, KKR should also benefit from being included into the S&P 500 as it should meet all the criteria, creating a wave of “forced buyers.””
A modern looking financial adviser sitting in front of a trading monitor, gesturing to a group of investors.
Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) at the end of second quarter which was 57 in the previous quarter.
We previously discussed Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) in another article and shared activist targets of ValueAct Capital and their long-term returns. In addition, please check out our hedge fund investor letters Q3 2023 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.
