Tracking Ole Andreas Halvorsen's Viking Global Portfolio - Q1 2018 Update

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Includes: ABEO, ABUS, ADS, ADSK, ANTM, AVGO, AXON, BABA, BUD, CP, DCPH, DPZ, ECA, EFX, FB, FWONK, GOOG, LEN, MSFT, MYOV, NFLX, PE, RJF, TD, TDG, UNH, UTX, V, WDC, WFC, X, XRAY
by: John Vincent

Summary

Halvorsen's 13F portfolio value increased from $16.26B to $16.61B. The number of positions decreased from 59 to 58.

Viking Global increased Facebook, Wells Fargo, and Anthem while dropping Broadcom.

The top three positions are Facebook, Alphabet, and Anthem.

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 05/15/2018. 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 2017.

This quarter, Halvorsen’s 13F stock portfolio value increased ~2% from $ $16.26B to $16.61B. The number of holdings decreased from 59 to 58. Largest five individual stock positions are Facebook, Alphabet, Anthem, Microsoft, and Encana Corp. They add up to ~32% of the entire 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:

Alibaba Group Holdings (NYSE:BABA), United States Steel (NYSE:X), and Western Digital (NYSE:WDC): These are medium-sized new positions established this quarter. BABA is a 2.43% portfolio stake established at prices between $172 and $205 and the stock currently trades at $199. The ~2% X position was purchased at prices between $33.50 and $46 and it currently trades near the low end of that range at $35.39. WDC is a 1.67% portfolio position established at prices between $80 and $107 and it is now at $86.35.

Note 1: Viking Global controls 5.5% of United States Steel.

Note 2: BABA is a frequently traded position in Viking’s portfolio.

Walt Disney (NYSE:DIS), BioMarin Pharma (NASDAQ:BMRN), Iqiyi Inc. (NASDAQ:IQ), Hartford Financial Services (NYSE:HIG), Gallagher Arthur J & Co. (NYSE:AJG), Tenaris SA (NYSE:TS), and Voya Financial (NYSE:VOYA): These are small (less than ~1% of the portfolio each) new positions established this quarter.

Cimarex Energy (NYSE:XEC), Mercadolibre (NASDAQ:MELI), Catalent Inc. (NYSE:CTLT), CVS Health Group (NYSE:CVS), Momo Inc. (NASDAQ:MOMO), AnaptysBio Inc. (NASDAQ:ANAB), Continental Resources (NYSE:CLR), JD.com (NASDAQ:JD), Liberty Media Sirius XM (NASDAQ:LSXMA), Cleveland Cliffs (NYSE:CLF), and AK Steel (NYSE:AKS): These are minutely small (less than 0.5% of the portfolio each) stakes established this quarter.

Note: JD is back in the portfolio after a quarter’s gap. The original large (~38M shares) position was established in 2016 at prices between $20 and $32.50. Q1 to Q3 2017 had seen a ~90% selling at prices between $25 and $48 and the disposal last quarter was at prices between $36.75 and $43.

Stake Disposals:

Broadcom Ltd. (NASDAQ:AVGO) previously Avago: AVGO was a 3.90% of the portfolio stake established in Q2 & Q3 2015 at prices between $109 and $148. Q3 2016 saw an about turn: ~55% reduction at prices between $150 and $177. Q1 2017 saw a ~20% selling at prices between $174 and $227 and that was followed with another one-third reduction in Q3 2017 at prices between $230 and $257. The disposal this quarter was at prices between $228 and $272. Last quarter had seen a ~14% increase. The stock currently trades at $250.

Time Warner Inc. (NYSE:TWX): TWX was a 2.58% portfolio stake purchased at prices between $87 and $104 and eliminated this quarter at prices between $91 and $97. The stock currently trades at $94.17.

Align Technology (NASDAQ:ALGN), Calithera Biosciences (NASDAQ:CALA), EQT Corp (NYSE:EQT), GW Pharmaceuticals (NASDAQ:GWPH), Mohawk Industries (NYSE:MHK), Molina Healthcare (NYSE:MOH), NuVasive Inc. (NASDAQ:NUVA), and Universal Health Services (NYSE:UHS): These were very small (less than 1% of the portfolio each) positions reduced last quarter and disposed this quarter.

Diamondback Energy (NASDAQ:FANG), Lowes Companies (NYSE:LOW), Marsh & McLennan (NYSE:MMC), Paccar Inc. (NASDAQ:PCAR), Pioneer Natural Resources (NYSE:PXD), Progressive Corp (NYSE:PGR), Qualcomm Inc. (NASDAQ:QCOM), Qudian Inc. (NYSE:QD), RSP Permian Inc. (NYSE:RSPP), Travelers Companies (NYSE:TRV), and Union Pacific (NYSE:UNP): These were minutely small stakes (less than ~0.5% of the portfolio each) established last quarter but disposed this quarter.

Stake Increases:

Facebook Inc. (NASDAQ:FB): FB is now the largest position at ~9% of the portfolio. It was purchased in Q1 2016 at prices between $94 and $116. There was a ~60% reduction in Q2 2017 at prices between $139 and $155 and that was followed with another ~30% selling in the following quarter at prices between $148 and $174. There was a ~12% trimming last quarter while this quarter saw a whopping ~140% increase at prices between $152 and $193. The stock is now at ~$185.

Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL): GOOG is the second-largest 13F position at 6.21% of the portfolio. It was established in Q3 2014 and H1 2015 saw a huge ~425% increase at prices between $493 and $575. The position has wavered since. Recent activity follow: There was a ~75% reduction in Q2 2017 at prices between $823 and $984 and that was followed with a ~115% increase last quarter at prices between $899 and $980. Last quarter saw a one-third reduction at prices between $952 and $1077. The stock is now at $1076. There was a marginal increase this quarter.

Anthem Inc. (NYSE:ANTM) and Raymond James (NYSE:RJF): These two positions were established in Q2 2017 and built over the last three quarters. The large (top three) ~6% ANTM stake was first purchased at prices between $165 and $193 and increased by ~15x over the last three quarters at prices between $181 and $258. The stock is now at ~$232. The 3.44% RJF position was first purchased at prices between $71.50 and $77 and increased by ~7x over the last three quarters at prices between $75 and $99. The stock currently trades at $99.47.

Microsoft Corporation (NASDAQ:MSFT): MSFT is a large (top five) 5.68% position. 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. There was another ~60% increase in Q4 2016 at prices between $57 and $64 and that was followed with a one-third increase the following quarter at prices between $62 and $66. Q2 2017 saw the pattern reverse: one-third selling at prices between $65 and $72.50 and that was followed with another ~50% reduction in the following quarter at prices between $68 and $75.50. The stock is now at $98.36. There was a ~12% trimming last quarter while this quarter saw a ~17% increase.

Wells Fargo (NYSE:WFC): WFC is a ~4% of the portfolio stake established in Q2 2017 at prices between $51 and $56 and sold down by ~85% the following quarter at prices between $49.50 and $56. Last quarter saw a reversal: ~180% increase at prices between $53 and $62. There was another ~140% increase this quarter at prices between $51 and $66. The stock is now at $54.90.

Autodesk Inc. (NASDAQ:ADSK): ADSK is a 3.51% portfolio stake established in Q3 2017 at prices between $99 and $117 and increased by two-thirds last quarter at prices between $104 and $130. The stock currently trades at ~$133. There was a ~14% stake increase this quarter.

Dentsply Sirona (NASDAQ:XRAY): The 2.80% XRAY stake was built over the last four quarters at prices between $50 and $69. The stock currently trades below that range at $46.57. For investors attempting to follow Viking Global, XRAY is a good option to consider for further research.

Anheuser Busch Inbev (NYSE:BUD) and Equifax Inc. (NYSE:EFX): These positions first purchased in Q3 2017 saw substantial increases in the last two quarters. The 2.78% BUD position was first purchased at prices between $110 and $123 and increased by ~80% last quarter at prices between $110 and $126. There was another ~50% stake increase this quarter at prices between $103 and $116. The stock is now below those ranges at $94.72. The 1.84% EFX stake saw a ~350% increase last quarter at prices between $106 and $120 and it is currently at $115. This quarter also saw a ~11% increase.

Canadian Pacific Railway (NYSE:CP): CP is a frequently traded stock that has been in the portfolio since Q4 2013. Recent activity follow: ~90% increase in Q3 2017 at prices between $151 and $169 followed with a ~30% reduction last quarter at prices between $165 and $185. The stock is now at $186 and the stake is at 2.59% of the portfolio. There was a marginal increase this quarter.

Transdigm Group (NYSE:TDG) and Thermo Fisher Scientific (NYSE:TMO): These two positions established last quarter saw increases this quarter. The TDG position was established at prices between $256 and $285 and the stock is now well above that range at $334. This quarter saw a ~80% stake increase at prices between $270 and $317. TMO is a ~1% stake purchased at prices between $182 and $200 and the stock is currently above that at ~$214. There was a ~6% stake increase this quarter.

Alliance Data Systems (NYSE:ADS): ADS was a minutely small position established last quarter. This quarter saw the stake built to a medium-size 2.34% of the portfolio position at prices between $212 and $276. The stock currently trades near the low end of that range at $213. For investors attempting to follow Viking Global, ADS is a good option to consider for further research.

HDFC Bank (NYSE:HDB) and Syneos Health (NASDAQ:SYNH) previously INC Research: These minutely small stakes were increased this quarter.

Stake Decreases:

Encana Corp. (NYSE:ECA): ECA is a large (top five) 5.35% of the portfolio position. The vast majority of the stake was purchased in Q1 2016 at prices between $3 and $6. Q1 2017 saw a ~11% trimming at prices between $10 and $14 and that was followed with another ~8% trimming in the following quarter at prices between $8 and $12. Q3 2017 saw the pattern reverse: ~30% stake increase at prices between $8.40 and $11.80. The stock is now at $12.64. This quarter saw a ~13% trimming.

Note: Viking Global owns ~8% of Encana.

United Technologies (NYSE:UTX): The fairly large ~4% UTX position was purchased in Q3 2017 at prices between $110 and $124 and increased by ~43% last quarter at prices between $116 and $128. It is now at $127. There was a ~9% trimming this quarter.

Note: United Technologies has had a previous round-trip in the portfolio. A small 0.73% stake was disposed in Q2 2017.

Visa Inc. (NYSE:V): The 3.72% V stake was purchased in H2 2016 at prices between $74 and $83. Q1 2017 had seen a ~12% trimming at prices between $80 and $90. There was a ~85% increase in the following quarter at prices between $89 and $97 and that was followed with another ~30% increase in Q3 2017 at prices between $93 and $106. Last quarter saw a reversal: ~25% selling at prices between $105 and $114 and that was followed with a one-third reduction this quarter at prices between $114 and $126. The stock is now at $131.

Toronto Dominion (NYSE:TD): TD is a 2.67% portfolio stake established in Q3 2017 at prices between $50 and $56.60. The stock currently trades just above that range at $58.96. There was a ~8% trimming last quarter and that was followed with a ~12% selling this quarter.

Netflix Inc. (NASDAQ:NFLX): NFLX is a 2.62% of the 13F portfolio stake. It was established in H2 2015 at prices between $93 and $131. Q2 & Q3 2016 saw a two-thirds reduction at prices between $85 and $112. There was a ~150% increase in Q4 2016 at prices between $98.50 and $128. There was another reversal in Q2 2017: ~72% reduction at prices between $140 and $166 and that was followed with a ~135% increase in the following quarter at prices between $146 and $189. The stock is now at $351. There was a ~5% trimming last quarter and that was followed with a ~60% reduction this quarter at prices between $201 and $331.

Domino’s Pizza (NYSE:DPZ) and Parsley Energy (NYSE:PE): These two positions established in Q3 2017 saw increases last quarter but were reduced this quarter. The 1.70% DPZ position saw a ~500% increase last quarter at prices between $169 and $209 and the stock is now well above that range at $250. There was a ~40% selling this quarter at prices between $186 and $232. The 2.47% PE position was established in Q3 2017 at prices between $24 and $30 and increased by ~130% last quarter at around the same price range. It is now at $29.42. There was a ~22% selling this quarter at prices between $21.50 and $31.

Note: Viking Global has a ~6% ownership stake in Parsley Energy.

Liberty Media Formula One (NASDAQ:FWONK): FWONK is a 2.23% position purchased in Q2 2017 at prices between $27.50 and $35. It is now at $30.83. The position has seen only very minor adjustments in the last two quarters.

United Health (NYSE:UNH): UNH is a ~2% portfolio stake established in Q4 2016 at prices between $134 and $164 and increased by ~62% the following quarter at prices between $158 and $172. Last three quarters had seen a ~58% selling at prices between $164 and $228. The stock is now at ~$245. There was a ~3% trimming this quarter.

Lennar Corporation (NYSE:LEN): LEN is a 1.75% position purchased in Q1 2017 at prices between $43 and $53 and increased by ~80% in Q3 2017 at prices between $50 and $55. There was a ~20% reduction last quarter at prices between $53 and $64 and that was followed with a one-third selling this quarter at prices between $56.50 and $72. The stock is now at $53.39.

Amazon.com Inc. (NASDAQ:AMZN): AMZN is a now a minutely small 0.31% of the 13F portfolio position. It was established in Q2 2015 at prices between $370 and $446 and increased by roughly one-third the following quarter at prices between $429 and $548. The position has wavered since. Recent activity follow: the four quarters thru Q3 2017 had seen a combined ~85% selling at prices between $739 and $1026 while last quarter saw a ~30% increase at prices between $957 and $1196. The fairly large ~4% portfolio position as of last quarter was almost sold out this quarter at prices between $1189 and $1598. The stock currently trades at $1610.

Salesforce.com (NYSE:CRM): CRM is a 0.73% portfolio position established in Q1 2017 at prices between $70.50 and $84 and increased by ~80% the following quarter at prices between $82 and $91. There was a ~25% selling in Q3 2017 at prices between $86 and $98 and that was followed with a ~35% reduction last quarter at prices between $93.50 and $109. This quarter saw another ~55% selling at prices between $104 and $128. The stock currently trades at ~$128.

Abeona Therapeutics (NASDAQ:ABEO), aTyr Pharma (NASDAQ:LIFE), AveXis Inc. (NASDAQ:AVXS), Deciphera Pharmaceuticals (NASDAQ:DCPH), Editas Medicine (NASDAQ:EDIT), Jazz Pharmaceuticals (NASDAQ:JAZZ), Jianpu Technology (NYSE:JT), Lincoln National (NYSE:LNC), and Netease Inc. (NASDAQ:NTES): These are very small (less than 1% of the portfolio each) positions reduced this quarter.

Note: Viking Global controls ~7% of Abeona Therapeutics and ~6% of Deciphera Pharmaceuticals.

Kept Steady:

aTyr Pharma (LIFE): LIFE is a minutely small 0.02% stake kept steady this quarter.

Note: Regulatory filings show Viking Global owning 38.34M shares (~63% of the business) of Myovant Sciences (NYSE:MYOV), 16M shares (~29% of the business) of Arbutus Biopharma Corp (NASDAQ:ABUS) and 75M shares (~70% of the business) of Axovant Sciences Ltd (NASDAQ:AXON). The three positions are indirectly held thru Roivant Sciences, whom they acquired in 2015.

The spreadsheet below highlights changes to Halvorsen’s US stock holdings in Q1 2018:

Ole Andreas Halvorsen - Viking Global - Q1 2018 13F Report

Disclosure: I am/we are long JD.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.