Vulcan Value Partners: “KKR is Positioned for Long-Term Success”

Vulcan Value Partners, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. All five of the fund’s strategies trailed their respective benchmarks during the quarter. According to the fund, they ‘place no weight on short-term results, good or bad, and neither should you’. Vulcan Value Partners have made and will continue to make decisions that negatively impact short-term performance when it thinks it can improve its long-term returns and lower risk. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Vulcan Value 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 $43.0 billion market capitalization. KKR & Co. Inc. (NYSE:KKR) delivered a -32.27% return since the beginning of the year, while its 12-month returns are down by -8.90%. The stock closed at $50.46 per share on May 19, 2022.

Here is what Vulcan Value Partners has to say about KKR & Co. Inc. (NYSE:KKR) in its Q1 2022 investor letter:

“KKR & Co. Inc. is a global investment firm that manages multiple alternative asset classes. The company’s operating profits grew approximately 45% during the fourth quarter of 2021 and roughly 55% for the year. In contrast, its stock price declined over 20% during the quarter. KKR generates robust free cash flow, and its value growth has been strong throughout the last year. It is unclear to us why KKR’s stock price has declined. However, we feel the company is positioned for long-term success and are pleased to own it with a discount to our estimate of its intrinsic value.”

Investments, Finance

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 55 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 56 funds in the previous quarter. KKR & Co. Inc. (NYSE:KKR) delivered a -13.61% return in the past 3 months.

In May 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 Q1 page.

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