Q: I have a partial position in BN and no position in KKR. Noticed huge run-up in KKR over past year, and good prospects for KKR this year. If you had new funds to invest in one of them, what is your advice.
Thanks
Thanks
5i Research Answer:
We like both names, we think both could be long-term winners in the asset management space. KKR has decent run recently, but is still not that expensive, trading at 19.1x Forward P/E. That said, we would not in a hurry to add to KKR at these prices, we are okay to average into KKR over time. We think BN is cheaper, we prefer BN at the current valuation.