By Nigam Arora
Editor’s note: This signal was published on February 19, 2026, in ZYX Buy Alert for paid members.
KKR is long from $15.68, it is trading at $99.72 as of this writing. Even after a major pullback, there is 535% gain on KKR.
Software Fears
All private equity firm stocks are pulling back on software fears. These firms either own a lot of private software companies or have extended a lot of loans to software companies. The concern is that some software companies will go bankrupt, causing problems
To learn about software issues, please read yesterday’s Morning Capsule and also read yesterday’s Intelligence post.
OWL Action
OWL is the dominant firm providing private credit to software companies. OWL has stopped redemptions from one of its funds. This is causing a drop in all private equity companies’ stocks.
Break Of $100 Psychological Support
On OWL news KKR has broken below the $100 psychological support. This opens the door for more drops on negative headlines.
Only 7% Exposure
KKR is different from other firms in that its exposure to software is only about 7% of AUM. Further, KKR software exposure is highly diversified.
Attractive Value
After this pullback, on a fundamental basis, KKR has become a very attractive value. However, as you know, at The Arora Report, signals are based on a combination of macro, fundamental, technical, quantitative, sentiment, and money flows.
Headline Risk
There is significant headline risk ahead. Headlines may include some other funds stopping redemptions or some software company not able to make loan payments.
Plan
The plan is to wait for a negative headline and initiate or add to KKR on down spikes.
Zones
The buy now rating and buy zone are being temporarily suspended. New signals will be given on downspikes.
To receive the new signal when it is triggered, join ZYX Buy.
What To Do Now
Those who have been holding the stock for a long time have substantial profits. Consider taking partial profits on a small quantity right here and more on upspikes.
Those who entered KKR recently will have small losses. Such investors may consider slowly reducing the quantity, especially on upspikes.
The objective is to have a quantity of less than *** (To see the locked content, please take a 30 day free trial)% of full core position size, for those who recently entered the position.
For those not in KKR, consider waiting for a new signal.
Note: Signal(s) to enter, add, reduce, exit, hold or change.
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This post was published on February 19, 2026 on ZYX Buy Change Alert.
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Nigam Arora
Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.
