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Opinions David Burrows
KKR & Co. LPKKRDON'T BUYMar 15, 2016
David BurrowsStock 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.
A big factor for them is how private equity is doing as a group. Valuations in private equity investments have gone up a lot over the last number of years. A lot of money left the publicly traded stock market to invest in private companies that were subject to day-to-day movements. Because that asset class did so well, the multiples of earnings that investors were paying expanded and expanded. He would liken the private equity world to what happened in the late 90s in the public market. The multiples are really, really high, so it is hard for them to get their exits by taking these companies public. He is less interested in private equity, and this is the time to be focused on public market equities, which have been out of favour for 12-14 years. Thinks it is likely that money is going to slowly rotate back to public market equities over the next number of years.