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Opinions Jennifer Radman
KKR & Co. LPKKRCOMMENTAug 13, 2015
Jennifer RadmanStock 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.
Think of the dividend as a distribution. It is a payout on 3 things. If they monetize investment and realize a performance bonus on it, that is one, and she expects that to continue. There are 3 ways to value this stock. You have 1) the value of your balance sheet assets, 2) the fee they earn off of managing other people’s monies and 3) if they do well managing other people’s monies and go above their return hurdles, they get paid even more. She thinks there is quite a bit of upside on the story. It has been selling off in the last few days. With China, there have been credit spreads widening out a little and people consider it as a bit of a spread business. She thinks it is going to break out of this trading range it has been in.