Alphyn Capital Management, an investment management firm, released its third-quarter 2023 investor letter. The same can be downloaded here. The Master Account of the fund returned -1.1% net in the third quarter compared to -3.3% for the S&P500 Index. As of September 30, 2023, the top ten holdings accounted for approximately 71% of the portfolio, and approximately 8.6% of the portfolio was held in cash. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Alphyn Capital Management 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 November 24, 2023, Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) stock closed at $69.20 per share. One-month return of Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) was 25.68%, and its shares gained 36.89% of their value over the last 52 weeks. Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) has a market capitalization of $79.317 billion.
Alphyn Capital Management made the following comment about Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) in its Q3 2023 investor letter:
“While Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR)’s traditional private equity business could face challenges in a higher-rate environment due to higher debt service costs and lower valuations during exits, the firm’s vast platform and diverse range of investment vehicles provide it with exposure to a broad spectrum of strategies, some of which could thrive in the current environment.
For example, KKR has a strong track record in private credit, with over $200 billion in assets under management. The firm is particularly bullish on asset-based finance (ABF), a $5 trillion+ addressable market with significant secular growth potential and direct lending. Higher rates have put pressure on bank balance sheets, so their presence in the ABF market has diminished. KKR is well-positioned to fill this void, given its $45bn footprint, relationships with insurance companies, and one-stop service combining origination, capital markets underwriting, and distribution capabilities. KKR recently acquired €40 billion of receivables from PayPal, and I anticipate more deals in the pipeline.
Overall, management remains highly confident in reaching its target of $4+ FRE and $7+ DE by 2026. I find this target credible, and it should continue to underwrite our investment.”
A vibrant team of financial advisors in their office reviewing spreadsheets and financial reports.
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, 69 hedge fund portfolios held Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) at the end of third quarter which was 62 in the previous quarter.
We discussed Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) in another article and shared the list of stocks that Prem Watsa just bought and sold. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 15 Best Drug Stocks To Invest In
- 25 Countries That Produce the Most Natural Gas
- 11 Stocks Under $50 To Buy Now
Disclosure: None. This article is originally published at Insider Monkey.
