Greenhaven Road Capital, an investment management company, released its first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, the Fund returned approximately 2%. In the short term, most share price fluctuations are due to changes in investor sentiment. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Greenhaven Road Capital featured stocks like KKR & Co. Inc. (NYSE:KKR) in the first quarter 2024 investor letter. Headquartered in New York, New York, KKR & Co. Inc. (NYSE:KKR) is an equity and real estate investment firm. On May 7, 2024, KKR & Co. Inc. (NYSE:KKR) stock closed at $99.54 per share. One-month return of KKR & Co. Inc. (NYSE:KKR) was -0.73%, and its shares gained 103.10% of their value over the last 52 weeks. KKR & Co. Inc. (NYSE:KKR) has a market capitalization of $88.538 billion.
Greenhaven Road Capital stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its first quarter 2024 investor letter:
“Ironically, when the CPI update was posted and everything sold off, I was sitting in the audience for KKR & Co. Inc.’s (NYSE:KKR) investor day. Management laid out a 302-page tour de force on how they can 4X their adjusted net income per share over the next 10 years (slide 23). Given the track record of their underlying funds, the firm’s new distribution channels (high net worth and insurance), history of fundraising success, and high-net-worth individuals’ under allocation to private equity, I had the overwhelming feeling of inevitability when considering KKR’s long-term prospects. Of course, nothing is truly inevitable about the short-term direction of any share price, but KKR’s business will almost undoubtedly grow significantly in the coming years. The firm’s people, business model, products, market need, and track record all signal to me that this will be an even bigger, more profitable business in 5 years than it is today. They have compounded assets at 18% for almost a decade and a half and grown fee-related income 7X since 2010. The pieces are in place for the next phase of growth including successful existing funds, robust distribution channels, new products, and a large base of existing limited partners. The team has been building.
Reasonable people can disagree over the cadence, quantum, and the drivers of growth, but, given the base of long-duration capital that KKR is building from and the existing mountain of “dry powder” that they can call at their discretion, AUM is going up. How much? I don’t know. Will it be because of Infrastructure, Asia, Credit, Americas, Real Estate, Growth Equity or something else? I don’t know. If you are reading this letter, you are almost undoubtedly intelligent and creative. Because you are intelligent and creative, you can come up with a scenario where some combination of geopolitical events and regulatory changes impairs KKR’s growth prospects, but I also suspect this exercise involves a mental Triple Lindy of problems for which a survival includes a nuclear bunker, by which time KKR’s multiple would be the least of any of our problems. As the co-CEO said to me, “I don’t worry about the next five years – those are already baked. I worry about years six through ten.” In my book, that is public company CEO speak for growth is inevitable…” (Click here to read the full text)
A modern looking financial adviser sitting in front of a trading monitor, gesturing to a group of investors.
Greenhaven Road Capital mentioned KKR & Co. Inc. (NYSE:KKR) in its fourth quarter 2023 investor letter and shared their optimism on the upward growth of the stock and its possible addition to the S&P 500 Index. KKR & Co. Inc. (NYSE:KKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, KKR & Co. Inc. (NYSE:KKR) was held by 68 hedge fund portfolios, down from 69 in the previous quarter, according to our database
We previously discussed KKR & Co. Inc. (NYSE:KKR) in another article, where we shared Alphyn Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q1 2024 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.
