Ayalon (4D) Global Stocks, managed by Ayalon Trust Funds Ltd. on KKR & Co. Inc.
Thesis
KKR is a large alternative asset manager that the fund believes can compound through continued growth in assets under management and the economics of a highly profitable industry. Its shares fell sharply from their peak amid industry-wide multiple compression and concerns about software exposure in KKR-managed funds as AI changes the competitive landscape. The manager views these pressures as short term and believes the stock trades at a substantial discount to its long-term potential. Recent insider purchases and aggressive company share repurchases reinforce the valuation thesis.
“I believe that the stock still trades at a substantial discount compared to its long term potential”
Key risks
- Further valuation compression across alternative asset managers
- AI-related pressure on software investments held in KKR-managed funds