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Opinions David Burrows
KKR & Co. LPKKRDON'T BUYFeb 14, 2017
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.
KKR & Co (KKR-N) or Blackstone (BX-N)? He prefers an asset manager that is focused on public market equities. Asset classes are always being revalued. At certain times, certain asset classes do better than others. We have just gone through 10 years where regulation, compliance and rules around being a public company went through the roof, and it became very, very expensive. During that time, managing investing in private companies became very attractive, as they didn’t have the same problems. However, many private companies trade at higher valuations than public market companies, and yet public market companies are liquid every day and can be bought or sold. We have entered a period of many years where public market equities and developed markets, are likely to outperform. Asset managers in that area are under-owned and under-loved, and things are changing for the better. Multiples are expanding. Prefers Morgan Stanley (MS-N).