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Opinions Gavin Graham
KKR & Co. LPKKRDON'T BUYSep 16, 2014
Gavin GrahamStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Continually raises new capital to generate great returns down the road. Generally, the sector is quite strong. Hitting 52-week highs today, so there's lots of momentum.
James TelfserDoing fewer leveraged deals in this higher interest rate environment. Lots of dry powder to take advantage of opportunities in the market. Unique geographical footprint, as they're in China.
Chris Blumas
We think the risk of “domino effects” between financial institutions is low given the backstop of the US government. Most names in the Financial sector are now quite attractively priced. We think the asset managers could do well in the next few years as the Fed stops hiking interest rates. Although things could change, we think the current drawdown should not be concerning for long-term investors.
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Chris BlumasChris Blumas
Chris BlumasBlackstone vs. KKR Both good and both are global players. She likes the private equity space, and the way to invest here is through stocks like these. She plays this space through BAM. All have a strong global presence. Private equity will see continued secular growth with interest rates staying near zero. Large institutions are seeking returns in private equity and infrastructure and will invest more here.
This is an alternative asset manager. Their exit strategy is to sell these alternative assets to the market. When the market has a correction, it raises concern about their exit strategy. As this was a short-term market correction, this company should benefit from a recovery. It has out-performed over 85% of the S&P500 stocks over the past 12 months. He would buy it right here. It is only 9-10 times earnings and they will have opportunities to monetize its assets.
Private equity companies are enormously profitable and really cheap because the difficulty is that it is really “deal flow” (?) for them. They cash in on some of their private equities. When you have a strong market like we have had over the last couple of years, you can float stuff off. There have been a raft of IPOs at very good valuations, and the private equity guys have been raking in even more, which is why they are at low valuations. This is probably not the right time to be in any of them.