Trade Tracker: Stephanie Link sells KKR

Group 1: Market Overview - Banks are trading at record highs, with Goldman Sachs and Bank of America reiterating an overweight position on Wells Fargo [1][2] - There is increased optimism around the deal market and M&A activity, with completed M&A transactions up 40% worldwide and 102% in North America year-to-date, totaling $2.7 trillion [3] Group 2: Private Equity Performance - Private equity stocks have underperformed recently, with Blue Owl down 9%, Apollo down 5.5%, and KKR down 2.5% over the past month [2] - There is a belief that private equity may have experienced a pull forward in valuations due to expectations of a deregulatory environment and lower capital costs [5] Group 3: Investment Strategy - Traditional banks are viewed as more compelling investments due to benefits from a steep yield curve and ongoing M&A activity, despite private equity being a fine sector [2][3] - There is an expectation of a significant rerating in bank stocks, suggesting a catch-up trade with private market stocks [4]