ELV - Tracking Ole Andreas Halvorsen's Viking Global Portfolio - Q4 2022 Update

2023-03-23 08:08:44 ET

Summary

• Halvorsen's 13F portfolio value decreased from $21.66B to ~$19.98B this quarter. The number of positions decreased from 88 to 53.
• Viking Global increased Amazon and UnitedHealth while decreasing General Electric, Meta Platforms, and Boston Scientific. They also dropped T-Mobile and Parker-Hannifin.
• The top three positions are Visa Inc., Amazon.com, and Elevance Health. Together, they are at ~16% of the portfolio.

This article is part of a series that provides an ongoing analysis of the changes made to Ole Andreas Halvorsen's 13F stock portfolio on a quarterly basis. It is based on Viking Global's regulatory 13F Form filed on 2/14/2023. Please visit our Tracking Ole Andreas Halvorsen's Viking Global Portfolio series to get an idea of his investment philosophy and our previous update for the fund's moves during Q3 2022.

This quarter, Halvorsen's 13F stock portfolio value decreased from $21.66B to $19.98B. The number of holdings decreased from 88 to 53. The largest five individual stock positions are Visa, Amazon.com, Elevance Health, McKesson, and Microsoft. They add up to ~24% of the portfolio.

Ole Andreas Halvorsen is one of the most successful "tiger cubs" (protégés of Julian Robertson & his legendary Tiger Fund). To know more about "tiger cubs", check out the book Julian Robertson: A Tiger in the Land of Bulls and Bears .

New Stakes:

CSX Corp. ( CSX ), Fortinet, Inc. ( FTNT ), and Seagate Technology ( STX ): CSX is a 2.41% of the portfolio position purchased this quarter at prices between ~$26.50 and ~$32.75 and the stock currently trades at $28.29. The 1.74% FTNT stake was established at prices between ~$46 and ~$57 and it is now well above that range at $61.21. STX is a 1.63% of the portfolio position purchased at prices between ~$48.50 and ~$58 and it now goes for $60.52.

Li Auto ( LI ), American International Group ( AIG ), Equitable Holdings ( EQH ), and Advanced Micro Devices ( AMD ): These are small (less than ~1% of the portfolio each) new stakes established during the quarter.

Stake Disposals:

T-Mobile US ( TMUS ): The ~2% TMUS stake was purchased over the six quarters through Q1 2021 at prices between ~$74 and ~$135. Next quarter saw a ~25% reduction at prices between ~$125 and ~$147 while in Q3 2021 there was a ~35% stake increase at around the same price range. That was followed with a ~30% stake increase in Q4 2021 at prices between ~$107 and ~$128. The last three quarters saw the disposal at prices between ~$122 and ~$152. The stock is now at ~$143.

Parker-Hannifin ( PH ): The ~2% PH stake was built during Q3 2021 at prices between ~$279 and ~$313. There was a ~42% reduction last quarter at prices between ~$238 and ~$308. The elimination this quarter was at prices between ~$242 and ~$311. The stock currently trades at ~$322.

CME Group ( CME ), KKR & Co. ( KKR ), Marsh & McLennan ( MMC ), PayPal Holdings ( PYPL ), Sea Limited ( SE ), Salesforce ( CRM ), ServiceNow ( NOW ), and Take-Two Interactive Software ( TTWO ): These small (less than ~2% of the portfolio each) stakes were disposed during the quarter.

Stake Increases:

Visa Inc. ( V ): Visa is currently the largest 13F position at ~6% of the portfolio. It was primarily built in Q4 2020 at prices between ~$181 and ~$219. There was a ~45% reduction over the next two quarters at prices between ~$193 and ~$237. H2 2021 saw a stake doubling at prices between ~$190 and ~$251 while in the next quarter there was a one-third selling at prices between ~$191 and ~$235. The last quarter saw another stake doubling at prices between ~$178 and ~$217. The stock currently trades at ~$220. This quarter also saw a ~8% stake increase.

Amazon.com, Inc. ( AMZN ): AMZN is now a large (top three) 5.25% of the portfolio position. It was established in Q2 2015 at prices between ~$19 and ~$22 and increased by roughly one-third the following quarter at prices between ~$22 and ~$27. The position has wavered. Recent activity follows: The four quarters through Q1 2021 had seen a ~80% selling at prices between ~$95 and ~$177. The stake was rebuilt next quarter at prices between ~$155 and ~$175 but was again sold down in Q3 2021 at prices between ~$159 and ~$187. The pattern continued over the next two quarters: the stake more than doubled at prices between ~$136 and ~$185. That was followed with another ~55% stake increase over the last two quarters at prices between ~$82 and ~$145. The stock currently trades at $98.70.

UnitedHealth ( UNH ): The 3.36% UNH stake was built in the last two quarters at prices between ~$499 and ~$555. The stock currently trades at ~$476.

BioMarin Pharma ( BMRN ): The 2.73% BMRN stake was built during the three quarters through Q2 2022 at prices between ~$74 and ~$92. The stock currently trades at ~$90. There were minor increases in the last two quarters.

Thermo Fisher Scientific ( TMO ): The 2.31% TMO position saw a ~40% stake increase this quarter at prices between ~$485 and ~$571. The stock is now at ~$554.

ACADIA ( ACAD ), Cadence Design Systems ( CDNS ), Clorox Company ( CLX ), Guardant Health ( GH ), Inhibrx ( INBX ), Intuit ( INTU ), Karuna Therapeutics ( KRTX ), KE Holdings ( BEKE ), Micron Technology ( MU ), Molina Healthcare ( MOH ), Rogers Communications ( RCI ), and RH Inc. ( RH ): These small (less than ~2.5% of the portfolio each) positions were increased during the quarter.

Stake Decreases:

Elevance Health ( ELV ): The large (top three) 4.81% ELV stake is now the largest position in the portfolio. It was built during Q2 2022 at prices between ~$444 and ~$530. There was a ~60% stake increase last quarter at prices between ~$446 and ~$507. This quarter saw a ~20% reduction at prices between ~$454 and ~$547. The stock is now at ~$465.

McKesson Corp. ( MCK ): MCK is a large (top five) 4.14% of the portfolio position purchased during Q2 2022 at prices between ~$300 and ~$336 and the stock currently trades above that range at ~$342. There was a ~60% stake increase last quarter at prices between ~$321 and ~$374. This quarter saw a ~15% trimming.

Microsoft Corporation ( MSFT ): MSFT is now at 4.12% of the portfolio. It was established in Q2 2016 at prices between $48.50 and $56.50 and increased by ~140% in the following quarter at prices between $51 and $58.50. Recent activity follows. 2021 saw the position sold down by ~75% at prices between ~$212 and ~$343. There was a ~18% stake increase last quarter at prices between ~$225 and ~$294. The stock is now at ~$272. This quarter saw a ~2% trimming.

Chubb Ltd. ( CB ): CB is a ~4% position that saw a ~20% stake increase in Q4 2021 at prices between ~$174 and ~$196. It is now at ~$190. There was a ~13% trimming next quarter while Q2 2022 saw a similar increase. The last two quarters also saw minor trimming.

General Electric ( GE ): The 3.26% of the portfolio GE stake was purchased over the five quarters through Q4 2021 at prices between ~$44 and ~$115. There was a ~50% selling over the next two quarters at prices between ~$64 and ~$103. Last quarter saw a similar increase at prices between ~$61 and ~$81 while this quarter saw a ~40% selling at prices between ~$48 and ~$69. The stock is now at $89.59.

Mastercard ( MA ): The ~3% MA stake saw a ~30% increase during Q2 2022 at prices between ~$309 and ~$379. The last quarter saw a ~23% reduction at prices between ~$284 and ~$360. There was a minor ~3% trimming this quarter. The stock currently trades at ~$351.

HDFC Bank ( HDB ): HDB is a ~3% of the portfolio position built over the three quarters through Q2 2022 at prices between ~$51 and ~$78 and the stock is now at $62.81. Last quarter saw a minor ~6% stake increase while this quarter there was a ~12% reduction.

Boston Scientific ( BSX ): The 2.21% BSX stake saw a ~175% stake increase in Q4 2021 at prices between ~$38 and ~$45. Next quarter saw a roughly one-third selling at prices between ~$41 and ~$45. The last two quarters saw a ~25% stake increase at prices between ~$35 and ~$47 while this quarter there was a ~40% selling at prices between ~$38 and ~$47. The stock currently trades at ~$48.

Royalty Pharma ( RPRX ): The ~2% RPRX stake was built in Q4 2021 at prices between ~$35 and ~$43. The stock currently trades at ~$35. There was a ~8% trimming this quarter.

Meta Platforms ( META ), previously Facebook: META is a 1.44% of the portfolio position established over the two quarters through Q1 2021 at prices between ~$246 and ~$295. The next two quarters had seen a ~27% selling at prices between ~$295 and ~$382. There was another one-third selling in Q1 2022 at prices between ~$187 and ~$339. The last two quarters saw the stake rebuilt at prices between ~$134 and ~$234 while this quarter there was a ~55% reduction at prices between ~$89 and ~$140. The stock is now at ~$200.

Ginkgo Bioworks ( DNA ): Shares of Ginkgo Bioworks started trading last September after the close of their De-SPAC transaction with Soaring Eagle Acquisition. Viking Global started investing in Gingko Bioworks in 2015 when the business raised ~$45M in a Series B funding round. The valuation at the time was ~$200M. The position was sold down by ~85% in Q1 2022 at prices between ~$2.80 and ~$8.70. Q2 2022 saw further selling. The position was rebuilt last quarter at prices between ~$2.40 and ~$3.75. This quarter saw a ~40% selling at prices between $1.58 and $3.52. The stock now trades at $1.22.

Ameriprise Financial ( AMP ), Amylyx Pharma ( AMLX ), Block, Inc. ( SQ ), Brookfield Corp. ( BN ), Charles River ( CRL ), Dollar General ( DG ), Fortive Corp. ( FTV ), Inspire Medical Systems ( INSP ), Insulet Corp. ( PODD ), International Flavors & Fragrances ( IFF ), Uber Technologies ( UBER ), Unum Group (UNM), and Valvoline ( VVV ): These small (less than ~2.6% of the portfolio each) stakes were decreased this quarter.

Note: Viking Global has a ~7% ownership stake in Amylyx Pharma.

Kept Steady:

Roivant Sciences ( ROIV ): ROIV came to market last September through a SPAC merger with Montes Archimedes. The stock currently goes for $7.27. Viking Global's 3.53% of the portfolio stake goes back to a private investment made in July 2016.

Note: Viking Global controls ~13% of Roivant Sciences.

APi Group ( APG ): Viking Global was an early investor in J2 Acquisition, a SPAC which acquired APi Group in October 2019. APi Group started trading at $10.40 and now goes for $21.15.

Note: Viking Global has a ~17% ownership stake in the business.

Adaptive Biotechnologies ( ADPT ): ADPT position is now at 1.15% of the portfolio. It came about as a result of Adaptive's IPO in June 2019. Viking Global was a majority investor in Adaptive. Shares started trading at ~$48 and currently goes for $7.93. Q1 2020 saw a ~13% trimming at ~$25 per share. There was another ~10% trimming in Q4 2020 at ~$50 average price.

Note: Viking Global still controls ~21% of Adaptive Biotechnologies.

BridgeBio Pharma ( BBIO ): BBIO is a ~1% stake. It had an IPO in Q1 2019. Viking Global's position goes back to earlier funding rounds prior to the IPO. The stock started trading at ~$27 per share and currently goes for $12.84.

Note: Viking Global controls ~21% of BridgeBio Pharma.

Catalent ( CTLT ): The minutely small 0.32% stake in CTLT was kept steady this quarter.

Note: Viking Global has significant ownership stakes in the following businesses: 4D Molecular ( FDMT ), Cazoo ( CZOO ), Edgewise Therapeutics ( EWTX ), PepGen ( PEPG ), Pharvaris N.V. ( PHVS ), Rallybio Corp. ( RLYB ), Talaris Therapeutics ( TALS ), and Trevi Therapeutics ( TRVI ).

The spreadsheet below highlights changes to Halvorsen's 13F stock holdings in Q4 2022:

For further details see: