Top 10 Stocks to Buy According to Akre Capital Management

2. KKR & Co. Inc. (NYSE:KKR)

Number of Hedge Fund Holders as of Q4: 83

Akre Capital Management’s Equity Stake: $1.52 Billion 

KKR & Co. Inc. (NYSE:KKR), a global investment firm specializing in private equity and asset management, reported a mixed fourth-quarter performance, with assets under management rising 15% to $638 billion, slightly below analyst projections of $643.4 billion. This shortfall contributed to an 8.5% decline in KKR’s stock price right after the earnings call, despite an impressive 78.5% gain throughout 2024. Analysts attribute this drop to concerns over slowing growth and profit-taking following the stock’s substantial rally.

However, KKR & Co. Inc. (NYSE:KKR) remains optimistic about its future, aiming to surpass $1 trillion in assets within the next five years. The company’s capital markets division performed well, generating $270 million in transaction fees for the quarter, driven primarily by private equity and infrastructure investments. For the full year, this division reached a milestone by generating $1 billion in revenue for the first time, underscoring KKR’s ability to navigate a shifting investment landscape.

Financially, KKR & Co. Inc. (NYSE:KKR)’s net income surged 33% to $1.19 billion, or $1.32 per share, surpassing estimates of $1.28 per share. The firm’s infrastructure funds posted a 2% gain, while its opportunistic real estate funds rose 1%, though its private equity portfolio remained flat, reflecting challenges in the broader investment environment. Looking ahead, KKR plans to expand its stakes in USI Insurance Services, 1-800 Contacts, and Heartland Dental, with a combined investment of approximately $1.1 billion. The firm anticipates generating over $350 million in operating earnings from this unit by 2026, with annual projections exceeding $1.1 billion by 2030.

As of the fourth quarter of 2024, Akre Capital Management held over 10 million shares of KKR & Co. Inc. (NYSE:KKR), valued at approximately $1.5 billion, making up 13.15% of Charles Akre’s investment portfolio. Hedge fund interest in KKR also increased, with 83 out of 1,009 funds tracked by Insider Monkey holding positions worth nearly $5.33 billion by the end of the quarter, up from 66 funds in the previous quarter. This growing investor confidence reinforces KKR’s position as one of the top stocks to buy according to Akre Capital Management.