KKR & Co. LP (KKR)

It is still a buy. If you believe the US is recovering, which he does, then the next logical move is for these financial players to move because they are cheap and because there is an obvious exit route through IPOing. Inexpensive name, pristine balance sheet and reasonable yield. Reverse head and shoulders pattern. 35% of companies are fixed companies but 65 should do very well.

Makes money 3 ways. 1) Fees for managing third-party capital. 2) Have their own balance sheet so make money on their own investments. 3) They carry interest which is really the most significant component, the performance bonus, which is attached to what they charge third-party capital, which, as they sell their assets they are able to get. She is at a point where she sums up all those businesses. With a lot of the market, you are not getting a lot more on the multiple expansion side. As long as there are opportunities to sell some of these assets, she thinks it will continue to do well.

A private equity manager and have made all kinds of investments over the last few years and have an opportunity to monetize some of these. You are going to see more of these private equity deals get monetized as we go forward. As long as we have easy monetary policy that is supporting asset prices, this is probably a great investment.

Only marginally above where they were a couple of years ago while their private equity pools continued to mature and pay out as a sell off of these and taken public. A pretty attractive part of the world to be in. Pretty cheap.

A private equity company that went public a couple of years ago. Has done incredibly well because the stock market has gone up and interest rates are very low so they fund all their projects incredibly cheap where they can refund any of the issues that they have outstanding. Has a very good dividend yield of 5.3%. As long as the environment stays like this, he feels they will continue to do well.

If you believe equity markets are going higher, you could see mid 20% return for S&P so you need to be in private equity. 5.3% yield. Impeccable balance sheet. Best of breed.

Has done quite well. They have low cost of funding. The stock market is going up a fair amount so they can exit some of their deals. A great opportunity. A perfect environment for these types of companies. Over 5% yield.

She has been taking some money off the table recently. It has been a phenomenal investment for them. Firing on all cylinders. Ability to raise and invest capital. Dividend is high but that is a function of how much they make and what they get from sales of businesses. Expects they will do well over the next couple of quarters. She would not buy it here but hang on to it. Thinks they could come under pressure in a pullback in the market.

Great company. Have capitalized on a number of investments over the last 6 months. Seems to be clicking on all cylinders. A lot of potential for further realizations over the course of the next 12 months or so. Still reasonable valuation. Very smart guys with their fingers and a lot of good pies.

(Top Pick Jan 11/13, Up 12.52%) Have three ways they generate money. Largest balance sheet through which they invest money. The fees they collect from third party capital. Performance Bonus from funds they manage. They are doing a lot of work on rolling over some of their legacy funds so they can pay a performance bonus. Expects them to continue to be very strong. Yield changes based on what they collect.

Pioneers of the private equity business. Still has about 5.5% yield, 7.5 times earnings. Not looking for a dividend increase. A little more volatile than the S&P. 65% owned by principles.

When Obama got re-elected the stock fell. Fears were on the tax side and whether income would be taxed at a different rate. Looking at the some of the 3 revenue streams including balance sheet, income from managing third-party capital and performance bonus (which is really starting to accelerate) this gives a NAV of about 20% higher. Dividend of 6.03%.