KKR Holds Most Cash Since 2011 as Risks in Stocks Increases

For the first time in five years holding cash could provide better returns than other assets as risks grow for global stocks, according to KKR & Co., the private equity firm that correctly predicted the global stock rebound last quarter.

KRR’s Global Macro & Asset Allocation team recommends its clients hold 7 percent of their assets in cash, up from 1 percent in September, according to its 2016 outlook report posted on its website. It also lowered holdings of global equities to 51 percent from 55 percent, marking the first underweight rating since 2011.