Cooperman Boosts KKR Position

Chidem Kurdas

Amid the excitement about the coming initial public offering of private equity giant Kohlberg Kravis Roberts & Co., the already publicly-traded credit fund managed by the firm, KKR Financial Holdings, appears to have slipped some pundits’ minds.

But Leon Cooperman of Omega Advisors has KKR Financial very much on the mind, judging from his recent buying.

Mr. Cooperman has amassed a position not only of KKR Financial stock but also convertible bonds. Last week he purchased more stock and a lot more converts. He – or rather, a family trust and other entities he controls – own more than 10% of the KKR debt investment vehicle. Most of the convertible notes he bought in the past week are dated 2017, but he’s also holding KKR converts that come due in  2012.

In May Jim Cramer recommended KKR Financial as a speculative buy, in part on the basis of insider buying by KKR chief executive William Sonneborn and Mr. Cooperman.

One could argue that KKR Financial, which was beaten down in the 2008 crisis, is a better buy than the firm’s new shares, which will likely debut high due to IPO excitement and then fall to earth.  The new evidence of Mr. Cooperman’s interest in KKR Financial strengthens the case.

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3 Responses to “Cooperman Boosts KKR Position”

  1. Cooperman: KKR, Sallie Mae, Gold « HedgeFundSmarts Says:

    […] Before the NYSE initial public offering by Kohlberg Kravis Roberts in July, Cooperman had a large and growing position in a separate publicly-traded credit investment vehicle managed by the fi…. […]

  2. Funds Like KKR « HedgeFundSmarts Says:

    […] Then there’s the big Chicago manager Balyasny.  Also Leon Cooperman, founder of Omega Advisors,  who was an early fan of KKR. […]

  3. Why Is Cooperman Selling KKR? « HedgeFundSmarts Says:

    […] Cooperman was a an early fan of the public stock, building up a position in 2010 after KKR transferred its common shares from Euronext Amsterdam to […]

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