RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. During the third quarter, the markets performed strongly with the Russell 1000 Growth Index (RLG) and the S&P 500 index returning 3.19% and 5.89% respectively and RPX returning 3.73%. A weaker-than-expected jobs report that raised fears of a coming recession caused the RLG to drop 8.8% from the end of June to the fifth of August, giving the quarter a rocky start. As China passed a significant stimulus package and the Fed began its rate-cutting cycle with a 0.50% decrease to a goal of 4.75%-5.00%, those losses quickly reversed. In addition, please check the fund’s top five holdings to know its best picks in 2024.
RiverPark Large Growth Fund highlighted stocks like KKR & Co. Inc. (NYSE:KKR) in the third quarter 2024 investor letter. KKR & Co. Inc. (NYSE:KKR) is an equity and real estate investment firm. The one-month return of KKR & Co. Inc. (NYSE:KKR) was -0.62%, and its shares gained 84.36% of their value over the last 52 weeks. On December 17, 2024, KKR & Co. Inc. (NYSE:KKR) stock closed at $151.23 per share with a market capitalization of $139.555 billion.
RiverPark Large Growth Fund stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its Q3 2024 investor letter:
“KKR & Co. Inc. (NYSE:KKR): Alternative asset manager KKR was a top performer in the third quarter after reporting strong second quarter results across the board, with the exception of the insurance segment. Fee Related Earnings (FRE) of $755 million beat investor expectations by $34mn and FRE margin of 68.2% was 30bps better than expected. Capital Markets fees were strong at $192mn and looking ahead, management noted Q3 is shaping up to be one of the highest quarters in the KKR’s history. In insurance, over the last three quarters, Global Atlantic (GA) has garnered $50bn of inflows vs. $20bn in the prior three quarters driving elevated levels of liquidity and pressure on near-term ROEs. Management expects Q3 & Q4 insurance operating earnings to be in the 2Q24 range and 2025 will likely be a bit below the 14-15% ROE range. The company noted that the overall tone in the fundraising environment is improving. Investors continue to be active in Infrastructure, Private Credit, and RE Credit, and sentiment is shifting in Real Estate Equity. In Private Equity (PE), management noted improving activity and believes there’s a chance PE fundraising has bottomed out.
We believe KKR is well positioned to weather any macroeconomic environment that may lie ahead having completed all major flagship fundraising. Over the longer term, 50% of KKR’s AUM is in strategies that have not yet scaled, which is an indicator of future potential growth. We believe there is good visibility into long-term 15% annual fee growth and are optimistic that the company’s stockpile of dry powder positions them well moving forward.”
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KKR & Co. Inc. (NYSE:KKR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held KKR & Co. Inc. (NYSE:KKR) at the end of the third quarter which was 75 in the previous quarter. While we acknowledge the potential of KKR & Co. Inc. (NYSE:KKR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed KKR & Co. Inc. (NYSE:KKR) and shared best stocks to buy for the long-term, according to Charles Akre. Baron Fifth Avenue Growth Fund initiated a position in KKR & Co. Inc. (NYSE:KKR) during Q3 2024, as it is well positioned to benefit from the growing alternative asset management industry. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.