Should You Also Invest in KKR and Co. Inc. (KKR)?

GoodHaven Capital Management, a concentrated portfolio investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 7.93% was recorded by the fund at year end of 2020, below its S&P 500 benchmark that delivered a 17.46% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

GoodHaven Capital Management, in their Q4 2020 investor letter, mentioned KKR & Co. Inc. (NYSE: KKR) and emphasized their views on the company. KKR & Co. Inc. is a New York-based investment company that currently has a $27.8 billion market capitalization. Since the beginning of the year, KKR delivered an 18.99% return, impressively extending its 12-month gains to 96.17%. As of March 25, 2021, the stock closed at $47.92 per share.

Here is what GoodHaven Capital Management has to say about KKR & Co. Inc. in their Q4 2020 investor letter:

“In July, KKR announced the acquisition of life and annuity company Global Atlantic. KKR paid an attractive 1.0x book value in a strategic deal that increases their presence of managing assets on behalf of insurance companies and brings permanent capital to one-third of total AUM.”

Ghost Tree Capital's AUM, Returns and Holdings

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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 20.51% return in the past 3 months.