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Opinions Jennifer Radman
KKR & Co. LPKKRCOMMENTFeb 19, 2016
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.
They have changed the distribution in the last little while. Before they were paying out a lot of the capital gains on the balance sheet as well as the performance bonus. Have now decided to keep that in-house as they weren’t seeing the market paying up for that. With the dislocation in credit markets and equities, and the fear coming out of that, it is really going to impact this company. There is a lot of pain in the equity Price. But this is really the time of volatility where they get good prices, and really plant the seeds to grow the business on earnings going forward. From that standpoint there is a very good baseline yield. They are long-term assets they are collecting fees on. Likes the business and the alignment of ownership and the people that are making these bets in investments on behalf of investors, so she thinks there is a much higher share price coming.