Ayalon Trust Fund (4D) Global Stocks on KKR & Co. Inc.
Thesis
KKR is viewed as a long-term compounder within the highly profitable alternative asset-management industry. The company manages approximately $640 billion and has grown assets under management at roughly 18% annually since its 2010 IPO, while its stock compounded at more than 20% annually over the same period. The fund increased its position after a substantial drawdown and believes the shares trade at a meaningful discount to long-term potential. Insider buying and aggressive share repurchases by KKR itself further support the valuation thesis.
“I believe that the stock still trades at a substantial discount compared to its long term potential”
Key risks
- Valuation multiples across the asset-management industry have compressed
- KKR-managed funds have software exposure that the market views as vulnerable to artificial intelligence