Should You Now Sell Your KKR Shares Before it’s too Late?

1 Main Capital Partners, an investment management firm, published its  second-quarter 2022 investor letter – a copy of which can be downloaded here. For the second quarter, 1 Main Capital Partners, L.P. (the “Fund”) returned (18.3)% net of fees and expenses, compared to a return of (16.1)% and (17.2)% for the S&P 500 and Russell 2000 indexes, respectively. For the first half, the Fund returned (27.7)% net, compared to (20.0)% and (23.4)% for the SPX and RTY, respectively Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, 1 Main Capital Partners mentioned KKR & Co. Inc. (NYSE:KKR) and explained its insights for the company. Founded in 1976, KKR & Co. Inc. (NYSE:KKR) is a New York, New York-based private equity company with a $59.1 billion market capitalization. KKR & Co. Inc. (NYSE:KKR) delivered a -29.11% return since the beginning of the year, while its 12-month returns are down by -20.99%. The stock closed at $52.81 per share on August 08, 2022.

Here is what 1 Main Capital Partners has to say about KKR & Co. Inc. (NYSE:KKR) in its Q2 2022 investor letter:

KKR was the largest detractor to the Fund’s performance in the first half, costing us around 6%. It was our largest position coming into the year and is down nearly 40% through June. It also remains our largest position today, as I have used weakness in the company’s share price to add meaningfully to our investment. In fact, it is approximately 2x the size of our next largest holding. The only other time I have had this type of outsized position in the portfolio was with RICK in late 2019, which went on to quadruple over the next two years.

KKR is an alternative asset manager that manages around $500 billion for clients. It gets paid a management fee and share of profits on much of the capital it puts to work. Importantly, KKR is very well positioned within its field.

For one, alternative asset managers (“Alts”) have been taking share from traditional strategies. On top of that, the largest of these managers have been taking share from smaller ones. Given its size, strong brand, and impressive long-term track record, KKR has been able to grow its AUM and fees at double digit CAGRs for decades and should continue capitalizing on the above trends for the foreseeable future…” (Click here to see the full text)

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Our calculations show that KKR & Co. Inc. (NYSE:KKR) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. KKR & Co. Inc. (NYSE:KKR) was in 54 hedge fund portfolios at the end of the second quarter of 2022, compared to 55 funds in the previous quarter. KKR & Co. Inc. (NYSE:KKR) delivered a 5.92% return in the past 3 months.

In July 2022 we also shared another hedge fund’s views on KKR & Co. Inc. (NYSE:KKR) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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