Do You Believe in Upside Potential of KKR (KKR)?

Greenhaven Road Capital, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned approximately -9%, bringing the YTD returns to approximately -9%. The factors that affected the portfolio during the quarter included a lack of direct investment in AI, no overlap with the S&P 500 and Russell 2000, and insufficient ownership of small, high growth, yet unprofitable companies that have driven the recent rally and benefited from the current AI landscape. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Greenhaven Road Capital highlighted stocks such as KKR & Co. Inc. (NYSE:KKR). KKR & Co. Inc. (NYSE:KKR) is an equity and real estate investment firm. The one-month return of KKR & Co. Inc. (NYSE:KKR) was 0.73%, and its shares lost 22.18% of their value over the last 52 weeks. On November 7, 2025, KKR & Co. Inc. (NYSE:KKR) stock closed at $121.32 per share, with a market capitalization of $112.286 billion.

Greenhaven Road Capital stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its third quarter 2025 investor letter:

“KKR & Co. Inc. (NYSE:KKR) is another of our holdings that is DOWN for the year. Similar to software companies, alternative asset managers are out of favor. Alternative managers including Blackstone, Apollo, Carlyle, and Blue Owl have all seen lower share prices. The two most prevalent concerns for the alternative asset managers relate to traditional private equity and private credit.

The “traditional private equity is challenged” argument goes something like, “private equity funds are being forced to hold companies longer, so limited partners are not getting cash back from their legacy investments, so they cannot or will not be investing as aggressively in private equity going forward.” This is supported by quotes from some managers of large endowments and pension funds. Now, let’s look at KKR specifically. Traditional private equity funds represent approximately 22% of KKR’s AUM, so while private equity is part of their business, it is not their whole business. Additionally, KKR has grown AUM by growing their investor base, not just relying on ever larger allocations from a few large investors. The limited partners in KKR’s private equity funds have also gotten back almost 2X the capital that they have put into private equity over the last eight years…” (Click here to read the full text)

In another article, we covered KKR & Co. Inc. (NYSE:KKR) and shared the list of best revenue growth stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2025 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.