- KKR is suffering a "black eye" over its investment in headed-for-bankruptcy Energy Future Holdings, but - says Oppenheimer's Chris Kotowski - other investments in that 2006 flagship fund are doing fine and should lead to further gains.
- Among them are Capsugel, Biomet, and Go Daddy. Then there's "works in progress" like First Data and Samson where marks have already been taken, but KKR - traditionally conservative in its marks - is working to improve the situation. Kotowski thinks if the fund were liquidated at current prices, it would generate $0.89 in earnings per share.
- "The news is not always good, but KKR seems to take the bitter medicine early when it needs to," says Kotowski ... [We] think KKR is the best organic growth story in the [P-E] group because it has used its balance sheet investments to fund numerous first generation funds in Energy, Infrastructure, Real Estate, Credit and long/short equities."
at Zacks.com (Jan 8, 2015)