Greenhaven Road Capital, an investment management company, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the Fund returned approximately 15%, bringing the full-year returns to approximately 51%. The reason for all of the Q4 returns was perseverance along with multiple expansions during the quarter as investors were willing to pay a higher P/E or P/S for the same underlying company. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Greenhaven Road Capital featured stocks such as KKR & Co. Inc. (NYSE:KKR) in the fourth quarter 2023 investor letter. Headquartered in New York, New York, KKR & Co. Inc. (NYSE:KKR) is an equity and real estate investment firm. On February 14, 2024, KKR & Co. Inc. (NYSE:KKR) stock closed at $95.95 per share. One-month return of KKR & Co. Inc. (NYSE:KKR) was 17.44%, and its shares gained 66.44% of their value over the last 52 weeks. KKR & Co. Inc. (NYSE:KKR) has a market capitalization of $85.292 billion.
Greenhaven Road Capital stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its fourth quarter 2023 investor letter:
“KKR & Co. Inc. (NYSE:KKR) – The alternative asset manager laid out some of the seeds of growth they have planted at the Goldman Sachs conference last December, stating that “…there’s a lot of different ways to grow the firm, Asia, climate, infrastructure, insurance, private credit, private wealth. These are all things we’ve been building over the last several years that are now starting to have a really big impact on the firm. And so that’s part of the reason you hear such optimism from us.”
On their last earnings call, management said, “we continue to be added to more private wealth platforms as these vehicles ramp. Two years ago, we were on approximately 10 platforms, and today, that number is closer to 40 across the suite of products that we manage, with more to come…. they are now raising approximately $500 million a month. It’s a really strong start for us, especially relative to our expectations, only reinforcing our confidence in the scale and impact of the long-term opportunity here.”
In December, KKR doubled down on insurance, purchasing the remainder of Global Atlantic, which has historically focused on managing assets for the insurance industry. They also have a 200-person sales force focused on selling into the private wealth channel. Private wealth is barely moving the needle today, but this is an asset-gathering business, and the machine is being built. Yes, there is a limit to how much more money endowments and other institutions can allocate to private equity, but the private wealth engine is just starting and should be able to drive meaningful growth for a decade-plus.
KKR has also been changing its share structure and governance to qualify for the S&P 500. This should occur in 2024 and provide a nice one-time tailwind as a wave of passive money is forced to buy KKR shares.”
A modern looking financial adviser sitting in front of a trading monitor, gesturing to a group of investors.
KKR & Co. Inc. (NYSE:KKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held KKR & Co. Inc. (NYSE:KKR) at the end of third quarter which was 62 in the previous quarter.
We discussed KKR & Co. Inc. (NYSE:KKR) in another article and shared the list of best asset management stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
