10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

John Rogers Comments on KKR & Co,

May 09, 2013 | About:
Holly LaFon

We had several stocks with strong returns in the first quarter. Private equity firm KKR & Co. L.P. (KKR) rose +31.84% due to strong fundamentals. Specifically, the company reported fourth quarter 2012 earnings of $0.48 per share versus consensus of $0.21. Its assets under management increased 28% over the past 12 months—up 14% from just the previous quarter. Returns on its private equity portfolio powered the increases, appreciating 24% in 2012—considerably higher than the S&P 500 Index. Originally our thesis held the stock was a bargain because it reflected its fee-based businesses but not carried interest. That inefficiency no longer exists, but now the crowd seems well behind the curve on the company's growth potential. We believe a broad distaste for many types of financial services firms remains in the wake of the Great Recession; in our view, this emotional backlash creates significant opportunities.

From John Rogers’ first quarter 2013 commentary.


Rating: 3.3/5 (4 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK