Here’s Why Greenhaven Road Capital Became Bullish in KKR and Co. Inc. (KKR)

Greenhaven Road Capital, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A commendable net return of 14% was recorded by the fund for the Q1 of 2021, outperforming the S&P  500 Index that delivered a 6.17% return for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Greenhaven Road Capital, in their Q1 2021 investor letter, mentioned KKR & Co. Inc. (NYSE: KKR), and shared their insights on the company. KKR & Co. Inc. is a New York, New York-based private equity company that currently has a $32.6 billion market capitalization. Since the beginning of the year, KKR delivered a 39.86% return, extending its 12-month gains to 133.33%. As of April 30, 2021, the stock closed at $56.58 per share.

Here is what Greenhaven Road Capital has to say about KKR & Co. Inc. in their Q1 2021 investor letter:

KKR (KKR) – Good things happen when you own a piece of a great business run by smart people with aligned incentives. KKR has built a juggernaut, benefitting from the continued shift to larger alternative asset managers. With 35% employee ownership, the company continues organically growing assets in the mid-teens with opportunities to accelerate this through the acquisition of Global Atlantic, a leading retirement and life insurance company. They are steadily increasing their base of permanent capital and are incubating several strategies to provide future growth. In their recent investor day (presentation linked here), they laid out a path to earning $5 per share in a couple of years (shares are trading around $55 as of the writing of this letter). Given their secular tailwinds, balance sheet (book value of $23 per share), stable base of capital, and track record of taking advantage of disruptions in the equity markets, if there were one business that I had to hold for five years no matter what, it would be KKR.”

Our calculations show that

Our calculations show that KKR & Co. Inc. (NYSE: KKR) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, KKR & Co. Inc. was in 54 hedge fund portfolios, compared to 50 funds in the third quarter. KKR delivered a 40.07% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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Disclosure: None. This article is originally published at Insider Monkey.