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Andreas Halvorsen is one of the most successful Tiger Cubs. He started his career in finance at Morgan Stanley. Later he worked at Julian Robertson's Tiger Management as Senior Managing Director and the Director of Equities. He spent seven years at Tiger until 1999, when he established his own hedge fund Viking Global Investors. Under his management, Viking Global returned an astonishing 89% after fees in its first year of establishment. Between June 2005 and March 2010, Viking Global was up 119%, versus 11% for the MSCI World Index. It returned 7.8% through December 23 last year, when many other funds were crashed by the European debt crisis.

Below is a list of the top 10 positions in the 13F portfolio of Viking Global as of September 30, 2011. These 10 positions returned 28% so far since the end of September, versus 15% for SPY in the same period. The calculation assumes that Halvorsen did not increase or reduce his positions in the 10 positions.

Company Name

Ticker

Value (*1000)

Return since Sep

U S BANCORP DEL

(NYSE:USB)

575677

22.66%

INVESCO LTD

(NYSE:IVZ)

512907

40.86%

APPLE INC

(NASDAQ:AAPL)

431730

10.51%

TIME WARNER CABLE

(NYSE:TWC)

412236

4.33%

VALEANT PHARMA

(NYSE:VRX)

318396

33.03%

BLOCK H & R INC

(NYSE:HRB)

317722

24.83%

BAIDU INC

(NASDAQ:BIDU)

315223

20.01%

LYONDELLBASELL

(NYSE:LYB)

314458

84.58%

HUMANA INC

(NYSE:HUM)

296046

29.45%

AMERICAN TOWER CORP

(NYSE:AMT)

256544

16.08%

Except AAPL and TWC, Halvorsen's top stock picks outperformed the market since the end of the third quarter, and seven of them returned more than 20% in that period. Among them, LyondellBasell Industries NV is the best performing stock. The Netherlands-based chemical company was up 84.58% so far since the end of September, heavily beating the S&P 500 index by almost 70 percentage points. At the end of the third quarter, Viking Global had $314 million invested in LYB. There are also 43 other hedge funds with LYB positions in their portfolios. For example, David Einhorn's Greenlight Capital also had $53 million invested in LYB. The stock has a market cap of $22B. Though it was up more than 80% in the past three-and-a-half months, it still seems to be trading at a discount as it has a low P/E ratio of only 7.14.

The largest position in the 13F portfolio of Viking Global at the end of September is US Bancorp . Over the third quarter, Viking Global largely increased its USB stake by 152%. As of September 30, 2011, the fund reported to own $476 million worth of USB shares. The stock returned 22.66% so far since the end of the third quarter, outperforming the market by 7 percentage points. Other than Viking Global, there are 35 hedge funds with USB positions in their portfolios at the end of September. Billionaire Warren Buffett is bullish about USB as well. His Berkshire Hathaway disclosed owning $1.6 billion worth of USB shares at the end of September. USB also has a low P/E ratio. The $55 billion market cap stock has a P/E ratio of 12.61.

We like Halvorsen. His Viking Global had an outstanding track record since its inception. It seems that the fund is also doing well recently. We believe that by focusing on the top stock picks of Halvorsen, investors will be more likely to beat the market in the long term.

Source: Andreas Halvorsen's Top 10 Positions Returned 28% Since September