KKR & Co. Inc. (KKR) Traded Lower due to Macroeconomic Concerns

Baron Funds, an investment management company, released its “Baron FinTech Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities closed 5% lower in Q1, following a sharp decline in March. Markets started well with the S&P 500 Index reaching new highs. However, concerns about tariffs, inflation, and softer economic growth, along with concerns about AI secular growth, contributed to risk-off conditions. In the first quarter, the fund fell 1.31% (Institutional Shares) compared to a -7.52% return for the FactSet Global FinTech Index (Benchmark) and a -4.27% decline for the S&P 500 index. Since its inception, the fund has appreciated at an annualized rate of 11.27%, compared to a 2.22% return for the Benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Baron FinTech Fund highlighted stocks such as KKR & Co. Inc. (NYSE:KKR). KKR & Co. Inc. (NYSE:KKR) is an equity and real estate investment firm. The one-month return of KKR & Co. Inc. (NYSE:KKR) was 3.12%, and its shares gained 10.10% of their value over the last 52 weeks.  On May 23, 2025, KKR & Co. Inc. (NYSE:KKR) stock closed at $117.18 per share with a market capitalization of $108.416 billion.

Baron FinTech Fund stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its Q1 2025 investor letter:

"Shares of leading alternative asset manager KKR & Co. Inc. (NYSE:KKR) fell due to macroeconomic concerns, particularly as Trump’s actions on tariffs and broader economic policy were more sweeping and volatile than expected. Alternative asset manager stocks performed well last year, especially after the November elections, on hopes that a wave of deregulation and pro-growth economic policies would spur a rise in deal activity and fees. Investors have since cooled on the prospects for a capital markets recovery, pressuring KKR and its peers. Although the near-term outlook is uncertain, we think KKR is a winner in the space, and its long-term fundraising success should be driven by its breadth of products and strong investment track record rather than the near-term economic outlook."

KKR & Co. Inc. (NYSE:KKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 88 hedge fund portfolios held KKR & Co. Inc. (NYSE:KKR) at the end of the first quarter compared to 83 in the last 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 undervalued AI stock set for massive gains.

In another article, we covered KKR & Co. Inc. (NYSE:KKR) and shared Greenhaven Road Capital's views on the company. In addition, please check out our hedge fund investor letters Q1 2025 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.