KKR’s use of Warren Buffett’s strategy off to a rocky start
| December 26th, 2009 | ||
| Businessweek reports that Kohlberg Kravis Roberts (KKR), the firm whose strategy has been characterized by high-leverage buyouts for thirty years, is moving towards a new investment model a la Warren Buffett. The Wall Street Journal has contrasted the two investors’ usual styles: while KKR quickly buys out and leverages companies with remarkable efficiency, Mr. Buffett typically chooses to purchase companies with low debt and strong management that he holds for long periods of time. The Wall Street Journal attributes KKR’s desire to switch up its strategy to the lifeless leverage loan market and investors’ increasing avoidance of companies with large debts. The firm now proposes to manage companies for longer periods of time and purchase smaller stakes in each investment. Difficulties still run rampant, however, and KKR’s new model has fallen flat with their recent investment in camera company Eastman Kodak, whose shares and revenue have fallen 32% and 27%, respectively, from the preceding period following the investment. It seems that KKR’s new “Warren Buffett” strategy may take some time to get off the ground. | ||
See Source | ||
For Detailed Investor Profiles on these Investors, click below: |
Berkshire Hathaway (Warren Buffett) |
Related People: Charles T. Munger;
Related Entities: Berkshire Hathaway Finance Corp;
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News
Add a Comment |
More Recent Headlines
Coal for Christmas, SEC Freezes Accounts of Frenchmen for Sanofi-Aventis – Chattem trades |
Templeton Asset Management outlines lack of confidence in Taro Pharmaceuticals |
Chelsea Clinton engaged to 3G Capital Management’s Marc Mezvinsky |
Adaptec CEO replaced by Steel Partners MD John Quicke |
Tyrus Capital's concentrated portfolio in GVT Holding raises eyebrows |
Hedge Funds Distance Themselves from Stevie Cohen as Cohen’s Ex-Wife Alleges Insider Trading |
SEC Charges Hurricane Restoration Company and Executives in Post-Katrina Accounting Fraud |
Facet Biotech Fends off Takeover Attempt from Biogen Idec with help from Baupost Group and Biotechnology Value Fund |
Tudor Capital, Brookside Capital & Woodbine Capital flush with inflows, stop taking new assets |
Fortress Investment Group Announces No 4th Quarter Dividend |
