KKR is Expanding into Hedge Funds
KKR 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
