KKR’s $10 Billion Prisma Capital Starts Best Ideas Hedge Fund

KKR & Co.’s $10 billion unit that allocates money to hedge funds, has started a best ideas fund after concluding that the largest stock positions taken by individual managers performed better than other picks.

KKR Prisma created the strategy in January to invest in some of the highest conviction -- or largest -- holdings from 14 equity-focused hedge fund managers, according to a presentation dated April 23 to the Alaska Retirement Management Board. The pension system had $420 million with KKR Prisma as of March 15 and was scheduled to vote on whether to allocate as much as $100 million to the KKR strategy.