Alternative asset managers such as KKR and Apollo Global Management are attracting the attention of investors hoping to tap into a growing trend in financial services — the migration of capital into private markets from public. Traditionally, these strategies have faced a stiff barrier to entry, including high fees and lengthy lockup periods when capital can't be withdrawn.
KKR and Apollo, noth added to the S & P 500 in 2024, surged more than 75% each. Even after those gains, investors are still optimistic on the long-term story for alternative managers, citing robust earnings growth forecasts. John Belton, a portfolio manager at Gabelli Funds, likes KKR, a holding in the Gabelli Growth Fund , which has 1.8% of its assets in the stock as of November, according to Morningstar.