V - Tracking Ole Andreas Halvorsen's Viking Global Portfolio - Q1 2023 Update

2023-06-13 04:32:53 ET

Summary

• Ole Andreas Halvorsen's 13F stock portfolio value increased to $21.31B in Q1 2023, with Visa, McKesson, UnitedHealth, Elevance Health, and General Electric as the largest holdings.
• New stakes were established in Lululemon Athletica, Sherwin-Williams, Emerson Electric, Zoominfo Technologies, Constellation Energy, Workday Inc., and Coupang.
• Several small stakes were dropped, including American International Group, Advanced Micro Devices, Brookfield Corp, Clorox Company, Dollar General, Insulet Corp, International Flavors & Fragrances, KE Holdings, Li Auto, RH, and Uber Technologies.

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 5/15/2023. 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 Q4 2022.

This quarter, Halvorsen's 13F stock portfolio value increased from $19.98B to $21.31B. The number of holdings decreased from 53 to 49. The largest five individual stock positions are Visa, McKesson, UnitedHealth, Elevance Health, and General Electric. They add up to ~26% 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:

Lululemon Athletica ( LULU ) and Sherwin-Williams (SHW): LULU is a 3.24% of the portfolio position purchased this quarter at prices between ~$293 and ~$364 and the stock currently trades just above that range at ~$368. The 2.38% SHW stake was established at prices between ~$209 and ~$249 and it is now at ~$245.

Emerson Electric (EMR), Zoominfo Technologies (ZI), Constellation Energy (CEG), Workday Inc. (WDAY), and Coupang (CPNG): These small (less than ~1% of the portfolio each) stakes were established during the quarter.

Stake Disposals:

American International Group (AIG), Advanced Micro Devices (AMD), Brookfield Corp (BN), Clorox Company (CLX), Dollar General (DG), Insulet Corp (PODD), International Flavors & Fragrances (IFF), KE Holdings (BEKE), Li Auto (LI), RH (RH), and Uber Technologies (UBER): These small (less than ~1% of the portfolio each) stakes were dropped during the quarter.

Stake Increases:

Visa Inc. (V): Visa is currently the largest 13F position at ~7% 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. Q3 2022 saw another stake doubling at prices between ~$178 and ~$217. That was followed with a ~23% increase in the last two quarters at prices between ~$178 and ~$231. The stock currently trades at ~$226.

McKesson Corp (MCK): MCK is a large (top three) 5.36% of the portfolio position purchased during Q2 2022 at prices between ~$300 and ~$336 and the stock currently trades well above that range at ~$395. There was a ~60% stake increase next quarter at prices between ~$321 and ~$374. That was followed with a ~45% increase this quarter at prices between ~$335 and ~$386.

UnitedHealth (UNH): The large (top three) 4.66% UNH stake was built in the last three quarters at prices between ~$460 and ~$555. The stock currently trades at ~$493.

Elevance Health (ELV): The large (top five) 4.65% ELV stake was built during Q2 2022 at prices between ~$444 and ~$530. There was a ~60% stake increase next quarter at prices between ~$446 and ~$507. Last quarter saw a ~20% reduction at prices while this quarter there was a similar increase. The stock is now at ~$473.

General Electric (GE): The large (top five) 3.86% 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. Q3 2022 saw a similar increase at prices between ~$61 and ~$81 while last quarter saw a ~40% selling at prices between ~$48 and ~$69. The stock is now at ~$106. There was a ~11% increase this quarter.

CSX Corp ( CSX ) and Fortinet Inc. (FTNT): CSX is a ~3% of the portfolio position purchased last quarter at prices between ~$26.50 and ~$32.75 and the stock currently trades at $32.40. There was a ~42% stake increase this quarter at prices between ~$28 and ~$33. The 3.70% FTNT stake was established last quarter at prices between ~$46 and ~$57 and it is now well above that range at $69.84. This quarter saw a two-thirds increase at prices between ~$48 and ~$67.

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 $25.15. There was a marginal increase this quarter.

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

Meta Platforms ( META ) previously Facebook: META is a 3.21% of the portfolio position established over the two quarters through Q1 2021 at prices between ~$246 and ~$295. The next two quarters saw 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 next two quarters saw the stake rebuilt at prices between ~$134 and ~$234 while in the last quarter there was a ~55% reduction at prices between ~$89 and ~$140. This quarter saw a ~35% increase at prices between ~$125 and ~$212. The stock is now at ~$271.

Thermo Fisher Scientific (TMO): The 2.32% TMO position saw a ~40% stake increase last quarter at prices between ~$485 and ~$571. The stock is now at ~$524. There was a minor ~2% increase this quarter.

Royalty Pharma (RPRX): The ~2% RPRX stake was built in Q4 2021 at prices between ~$35 and ~$43. The stock currently trades below that range at $32.81. There was a ~8% trimming last quarter while this quarter saw a similar increase.

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 next quarter at prices between ~$2.40 and ~$3.75. Last quarter saw a ~40% selling at prices between $1.58 and $3.52. There was a ~125% stake increase this quarter at prices between $1.20 and $2.20. The stock now trades at $1.95.

Acadia Healthcare (ACAD), Cadence Design Systems (CDNS), Fortive Corp (FTV), Guardant Health (GH), Intuit (INTU), Karuna Therapeutics (KRTX), Molina Healthcare (MOH), Progressive Corp (PGR), Rogers Communications (RCI), Unum Group (UNUM), and Valvoline (VVV): These small (less than ~2% of the portfolio each) positions were increased during the quarter.

Stake Decreases:

Amazon.com Inc. (AMZN): AMZN is now a 3.70% 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 the 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. This quarter saw a ~40% selling at prices between ~$83 and ~$113. The stock currently trades at ~$127.

Chubb Ltd. (CB): CB is a ~3% position that saw a ~20% stake increase in Q4 2021 at prices between ~$174 and ~$196. It is now at ~$191. There was a ~13% trimming next quarter while Q2 2022 saw a similar increase. The last three quarters also saw minor trimming.

HDFC Bank (HDB): HDB is a 2.59% of the portfolio position built over the three quarters through Q2 2022 at prices between ~$51 and ~$78 and the stock is now at $63.94. Next quarter saw a minor ~6% stake increase while last quarter there was a ~12% reduction. There was a minor ~3% trimming this quarter.

Seagate Technology (STX): STX is a 1.63% of the portfolio position purchased last quarter at prices between ~$48.50 and ~$58 and it now goes for $63.41. There was a ~11% trimming this quarter.

Microsoft Corporation (MSFT): MSFT is now at 1.42% 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 during Q3 2022 at prices between ~$225 and ~$294. This quarter saw a ~70% reduction at prices between ~$222 and ~$288. The stock is now at ~$332.

Mastercard (MA): The 1.36% MA stake saw a ~30% increase during Q2 2022 at prices between ~$309 and ~$379. Next quarter saw a ~23% reduction at prices between ~$284 and ~$360. There was a ~53% reduction this quarter at prices between ~$345 and ~$382. The stock currently trades at ~$375.

BioMarin Pharma (BMRN): The ~1% BMRN stake was built during the three quarters through Q2 2022 at prices between ~$74 and ~$92. This quarter saw a ~60% selling at prices between ~$88 and ~$117. The stock currently trades at ~$93.

Amylyx Pharma (AMLX), Ameriprise Financial (AMP), Block Inc. (SQ), Boston Scientific (BSX), Charles River (CRL), Equitable Holdings (EQH), Inspire Medical Systems (INSP), and Micron Technology (MU): These small (less than ~1% of the portfolio each) stakes were reduced during the 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 $9.42. Viking Global's ~3% of the portfolio stake goes back to a private investment made in July 2016.

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

BridgeBio Pharma (BBIO): BBIO has ~2% 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 $15.81.

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

Adaptive Biotechnologies (ADPT): ADPT position is now at 1.24% 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 go for $7.94. 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.

Inhibrx (INBX): The very small 0.59% of the portfolio INBX stake 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 NV (PHVS), Rallybio Corp (RLYB), Talaris Therapeutics (TALS), Trevi Therapeutics (TRVI), and Verastem (VSTM).

The spreadsheet below highlights changes to Halvorsen's 13F stock holdings in Q1 2023:

For further details see: