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Andreas Halvorsen started his career in the financial industry at Morgan Stanley (NYSE:MS). Later he was seeded by legendary Julian Robertson and spent seven years as Senior Managing Director and the Director of Equities at Tiger Management. Like many other Tiger cubs, Halvorsen established his own hedge funds Viking Global Investors in 1999. As one of the most successful Tiger cubs, Halvorsen led his Viking Global achieved an astonishing 89% return 89% after fees in its first year of establishment. The fund gained 119% between June 2005 and March 2010, during which the MSCI World Index returned 11%. Viking Global performed much better than most hedge funds in 2011 as well. The fund was up 7.8% through December 23.

In this article, we are going to focus on the stocks that Halvorsen is no longer bullish about. All companies are in the 13F portfolio of Viking Global at the end of the second quarter, and the fund invested at least $100 million in these positions. But at the end of September, Viking Global did not disclose owning any shares of these stocks.

Company Name

Ticker

Value

JPMORGAN CHASE & CO

JPM

390543

VIACOM INC NEW

VIA.B

325742

SEAGATE TECHNOLOGY

STX

323782

JOHNSON CONTROLS INC

JCI

303640

MARSH & MCLENNAN

MMC

222505

BLACKROCK INC

BLK

194898

MOSAIC CO.

MOS

168817

MORGAN STANLEY

MS

140475

MARRIOTT INTERNATIONAL

MAR

111406

HCA HOLDINGS INC

HCA

105334

AGRIUM INC

AGU

104416

The biggest position that Halvorsen sold out during the third quarter is JPMorgan Chase & Co (NYSE:JPM). At the end of June, Viking Global had had $391 million invested in JPM. The fund sold out its JPM stake over the third quarter. The stock returned 19.10% since the end of September, versus 13.86% for SPY in the same period. The stock is very popular among hedge funds tracked by us and it has a relatively low P/E ratio of 7.53. Lee Ainslie’s Maverick Capital had $200+ million invested in JPM at the end of September. John Paulson’s Paulson & Co and Jim Simons’ Renaissance Technologies also both invested over $150 million in JPM.

The worst performing large-cap US stock that Halvorsen sold out is Mosaic Company (NYSE:MOS), which returned 8.44% since the end of the third quarter, underperforming the market by more than 5 percentage points. During the third quarter, Viking Global sold out $169 million worth of MOS stakes. The stock has a market cap of $22.57B and a P/E ratio of 10.13. Louis Bacon’s Moore Global Investments also sold out its MOS calls during the third quarter.

Other stocks that Halvorsen is no longer bullish about include Viacom Inc (VIA-B), Seagate Technology (NASDAQ:STX), Johnson Controls Inc (NYSE:JCI), March & McLennan Cos Inc (NYSE:MMC), BlackRock Inc (NYSE:BLK), Morgan Stanley (MS), Marriott International Inc (NASDAQ:MAR), HCA Holdings Inc (NYSE:HCA), and Agrium Inc (NYSE:AGU). Most of these 11 stocks did quite well since the end of the third quarter. Except AGU, HCA and MOS, the other eight positions all generated double-digit returns and outperformed the market. STX even returned an astonishing 78.76% since the end of September. Halvorsen has a talent picking stocks and even the stocks he sold had room to beat the market. We don’t think these are good short candidates.



Disclosure: I am long MS.

Source: 11 Big Sells By Andreas Halvorsen's Viking Global