KKR disappointed the markets with weak second-quarter "economic net income"  of $315.0 million versus $433.1 million a year ago. After-tax economic net income was $0.36, compared with the average analysts' prediction of 40 cent per share. The stock sold off in response. Economic net income is a measure used by public private equity firms that excludes the costs associated with offerings and acquisitions while including the unrealized gains of portfolio companies.

The news wasn't universally poor. In some ways it was a matter of KKR's private-equity funds suffered from tough comps. They rose 4 percent in the quarter and 10.1 percent in the first-half of 2011, compared with 30 percent for last year. Assets under management grew to nearly $62 billion, up 14 percent year over year. And fee-generating assets increased 12 percent to $46.4 billion.

This is hardly a disaster. The results may be exaggerated a bit in comparison with the upside surprise from Blackstone Group, which turned its best performance since going public in 2007. All in all, people cannot help comparing the two companies.

Sandler O'Neill's Michael Kim reiterated his buy rating on KKR, according to Barron's. "Despite the 2Q11 ENI miss, we look for a step up in fundraising, deal flow, realizations, carry, and distributions to unit holders over time, likely translating into rising earnings power," Kim wrote. 

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