KKR is Expanding into Hedge FundsKKR Prisma, the $10 billion unit of KKR & Co. that allocates money to hedge funds, created the best ideas fund after concluding that the largest stock positions taken by individual managers performed better than other picks.
KKR Prisma created the strategy in January to invest in some of the highest conviction -- or largest -- holdings from 14 equity-focused hedge fund managers, according to a presentation dated April 23 to the Alaska Retirement Management Board. The pension system had $420 million with KKR Prisma as of March 15 and was scheduled to vote on whether to allocate as much as $100 million to the KKR strategy.
KKR has been expanding into hedge funds, joining competitors Blackstone Group LP and Carlyle Group LP in broadening its business beyond leveraged buyouts. Prisma has added more than $2 billion of assets since KKR agreed to acquire it in 2012.
Kristi Huller, a spokeswoman for New York-based KKR, declined to comment on the fund.
KKR Prisma’s Vishal Soni will oversee the fund’s allocation to individual managers, adjusting for risk and exposure to different industries, currencies and countries. The strategy targets returns of 8 percent to 10 percent a year.Source: Bloomberg