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Should You Also Invest in KKR and Co. Inc. (KKR)?

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·3 min read
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GoodHaven Capital Management, a concentrated portfolio investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 7.93% was recorded by the fund at year end of 2020, below its S&P 500 benchmark that delivered a 17.46% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

GoodHaven Capital Management, in their Q4 2020 investor letter, mentioned KKR & Co. Inc. (NYSE: KKR) and emphasized their views on the company. KKR & Co. Inc. is a New York-based investment company that currently has a $27.8 billion market capitalization. Since the beginning of the year, KKR delivered an 18.99% return, impressively extending its 12-month gains to 96.17%. As of March 25, 2021, the stock closed at $47.92 per share.

Here is what GoodHaven Capital Management has to say about KKR & Co. Inc. in their Q4 2020 investor letter:

"In July, KKR announced the acquisition of life and annuity company Global Atlantic. KKR paid an attractive 1.0x book value in a strategic deal that increases their presence of managing assets on behalf of insurance companies and brings permanent capital to one-third of total AUM."

Ghost Tree Capital's AUM, Returns and Holdings
Ghost Tree Capital's AUM, Returns and Holdings

everything possible/Shutterstock.com

Our calculations show that KKR & Co. Inc. (NYSE: KKR) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, KKR & Co. Inc. was in 54 hedge fund portfolios, compared to 50 funds in the third quarter. KKR delivered a 20.51% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, the House passed a landmark bill decriminalizing marijuana. So, we are checking out this under the radar cannabis stock right now. We go through lists like the 10 best battery stocks to buy to identify the next stock with 10x upside potential. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.