Should You Add KKR & Co.’s (KKR) to Your Portfolio?

Soumya Eswaran Wed, July 22, 2026 at 10:31 AM EDT 3 min read **

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Dodge & Cox Fund, an investment management company, released its second-quarter 2026 investor letter for "Dodge and Cox Stock Fund". A copy of the letter can be downloaded here. Despite volatile oil prices and rising inflation, U.S. equities reached record highs in Q2 2026, driven by a technology-led rally, particularly in memory semiconductors. The Fund's Class A shares returned 5.57%, underperforming the S&P 500 Index's 15.20% return and the Russell 1000 Value Index's 13.84% gain, mainly due to underweighting in Information Technology and weak performances from several holdings. Concerns over AI disruption negatively impacted companies with strong franchises. The Fund's bottom-up investment approach allowed it to acquire shares in industry leaders with strong long-term fundamentals. The firm believes that increased exposure to high-quality businesses and a diversified portfolio positions the Fund well for future growth. In addition, please check the Fund's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, Dodge and Cox Stock Fund highlighted KKR & Co. Inc. (NYSE:KKR). KKR & Co. Inc. (NYSE:KKR) is a leading private equity and real estate investment firm focusing on direct and fund-of-fund investments. On July 21, 2026, KKR & Co. Inc. (NYSE:KKR) closed at $97.11 per share, reflecting a market capitalization of $90.55 billion. KKR & Co. Inc. (NYSE:KKR) posted a one-month return of 6.12%, while its shares lost 34.50% over the past 52 weeks.

Dodge and Cox Stock Fund stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its Q2 2026 investor update:

"During the second quarter, concerns about AI disruption led to declines in a number of companies with strong franchises and solid profitability. Our bottom-up approach led us to establish several new positions in industry leaders whose shares have lagged, and where we believe the long-term fundamentals are not fully reflected in their current prices. We initiated a position in Visa, a leader in global payments, an industry characterized by strong network effects and high barriers to entry.

KKR & Co. Inc.** (NYSE:KKR), a global alternative asset manager, is also a new position in the Fund. Its share price declined amid broader macroeconomic concerns and potential weakness in its private credit and software investments. We believe the company's exposures to these areas are manageable and not overly concentrated. KKR traded at 13.6 times forward earnings, despite its diversified portfolio across private equity, real assets, and credit, and strong alignment between management and shareholders."

** Story Continues 10 AI Stocks Analysts Are Watching KKR & Co. Inc. (NYSE:KKR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 82 hedge fund portfolios held KKR & Co. Inc. (NYSE:KKR) at the end of the first quarter, up from 76 in the previous quarter. While we acknowledge the potential of KKR & Co. Inc. (NYSE:KKR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock**.

In another article, we covered KKR & Co. Inc. (NYSE:KKR) and shared RiverPark Large Growth Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.