Tracking Ole Andreas Halvorsen's Viking Global Portfolio - Q1 2019 Update

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Includes: AAL, ABEO, ADBE, AJG, ALGN, ALL, AMRX, AMZN, ANAB, ANTM, AON, ATVI, BA, BABA, BERY, BKNG, BMRN, BPMC, BSX, BURL, CCK, CGNX, CNC, CP, CRM, CTLT, CTRP, CVET, DIS, DVA, ECA, EDIT, EIDX, EQH, EXAS, FANG, FB, FWONK, GOOG, GOOGL, HES, ILMN, IQ, JAZZ, JD, LEN, LIFE, LYB, MELI, MIDD, MPC, MRNA, MSFT, MU, MYL, NFLX, NVDA, NVRO, NXPI, PGR, RJF, SEE, SYNH, TMO, TMUS, UNH, UROV, UTX, V, WCG, Z, ZBH, ZEN
by: John Vincent
Summary

Halvorsen's 13F portfolio value decreased from $17.57B to $17.44B. The number of positions remained steady at 56.

Viking Global increased Anthem Inc. and UnitedHealth Group while reducing Microsoft and Alibaba Group Holding.

The top three positions are Anthem Inc., Microsoft, and Alibaba Group Holding. Together, they are at ~23% 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 05/15/2019. 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 2018.

This quarter, Halvorsen’s 13F stock portfolio value decreased marginally from $17.57B to $17.44B. The number of holdings remained steady at 56. The largest five individual stock positions are Anthem Inc. (NYSE:ANTM), Microsoft (NASDAQ:MSFT), Alibaba Group Holding (NYSE:BABA), UnitedHealth (NYSE:UNH), and United Technologies (NYSE:UTX). They add up to one-third of the portfolio.

Ole Andreas Halvorsen is one of the most successful “tiger cubs” (protégés of Julian Robertson and 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:

JD.com (JD), Nvidia Corp. (NVDA), and MercadoLibre Inc. (MELI): JD is a 2% of the portfolio stake purchased this quarter at prices between $19.75 and $31.25 and the stock currently trades at $27.26. The 1.94% NVDA position was established at prices between $127 and $184 and it is now at $148. MELI is a 1.78% of the portfolio stake purchased this quarter at prices between $258 and $518 and the stock is now well above that range at ~$617.

NXP Semiconductors (NXPI) and Activision Blizzard (ATVI): NXPI is a small 1.38% of the portfolio position established this quarter at prices between $67.50 and $97 and the stock is now at $95.39. The 1.28% ATVI stake was purchased at prices between $40 and $51 and it currently goes for ~$46.

Allstate Corp. (ALL), Covetrus Inc. (CVET), Crown Holdings (CCK), Booking Holdings (BKNG), Hess Corp. (HES), and Micron Technology (MU): These are very small positions (less than ~1% of the portfolio each) established this quarter.

Zimmer Biomet Holdings (ZBH), Burlington Stores (BURL), LyondellBasell Inds. (LYB), AXA Equitable (EQH), and Nevro Corp. (NVRO): These are minutely small stakes (less than ~0.5% of the portfolio each) established this quarter.

Stake Disposals:

Salesforce.com (CRM): CRM was a ~4% 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 the following quarter at prices between $93.50 and $109. Q1 2018 saw another ~55% selling at prices between $104 and $128. The stock currently trades at ~$153. Last three quarters had seen a ~400% stake increase at prices between $115 and $160. This quarter saw the position disposed of at prices between $121 and $167.

DowDupont: DowDupont was a 1.78% portfolio position established in Q2 2018 at prices between $62 and $70. The stake was sold down by ~44% last quarter at prices between $49 and $65 and disposed of this quarter.

Encana Corp. (ECA): ECA was a large 5.38% of the portfolio position as of Q3 2018. Last quarter saw a ~90% reduction to a minutely small stake at prices between $5.11 and $13.50. The vast majority of the original stake was purchased in Q1 2016 at prices between $3 and $6. The stock is now at $5.05. The remainder stake was disposed of this quarter. Viking Global realized gains.

Raymond James (RJF): The ~1% RJF position was first purchased in Q2 2017 at prices between $71.50 and $77 and increased by ~7x over the next three quarters at prices between $75 and $99. The stock currently trades at $84.66. Last three quarters saw the stake sold down by ~60% at prices between $69 and $102. The elimination this quarter was at prices between $69.75 and $84.50.

Abeona Therapeutics (ABEO), Amneal Pharmaceuticals (AMRX), American Airlines (AAL), Boeing (BA), Canadian Pacific Railway (CP), Cognex Corp. (CGNX), CTrip.com (CTRP), iQIYI Inc. (IQ), Lennar Corporation (LEN), Sealed Air Corp. (SEE), T-Mobile US (TMUS), and Zillow Group (Z): These very small (less than ~1% of the portfolio each) positions were disposed of during the quarter.

Note 1: MRNA had an IPO in December. It was priced at $23 per share (~$18.50 first day close) and currently trades at $15.67. Viking Global’s stake goes back to 2015 when they made an investment in Moderna’s funding round. Their ownership stake in Moderna is currently at 5.4%.

Note 2: Canadian Pacific Railway has seen previous roundtrips. It is a frequently traded stock in the portfolio.

Stake Increases:

Anthem Inc.: ANTM is currently the largest 13F position at 10.19% of the portfolio. It was first purchased in Q2 2017 at prices between $165 and $193 and increased by ~15x over the next three quarters at prices between $181 and $258. The stock is now well above those ranges at ~$282. There was a ~15% increase over the last two quarters and that was followed with a ~22% stake increase this quarter at prices between $236 and $317.

UnitedHealth: UNH is a 5.30% 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. The next three quarters had seen a ~58% selling at prices between $164 and $228. Last quarter saw a ~130% stake increase at prices between $233 and $286 and that was followed with a ~31% stake increase this quarter at prices between $233 and $272. The stock is currently at $248.

United Technologies: UTX is a 5.24% of the portfolio position purchased in Q3 2017 at prices between $110 and $124 and increased by ~43% the following quarter at prices between $116 and $128. The stake was almost doubled in Q2 2018 at prices between $118 and $128. The position was sold down by ~45% in Q3 2018 at prices between $125 and $142 while last quarter saw a ~18% stake increase. It is now at ~$128. There was a marginal stake increase this quarter.

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

Marathon Petroleum (MPC): MPC was a minutely small stake established in Q2 2018. The position was built to a medium-sized stake next quarter at prices between $70 and $86. Last quarter saw another ~85% stake increase at prices between $54 and $86. The stock is now at $47.68. There was a minor ~4% stake increase this quarter and the position is now at 4.72% of the portfolio.

BioMarin Pharma (BMRN): The 2.61% BMRN stake was built last year at prices between $76 and $106. It is currently at ~$81. There was a marginal increase this quarter.

Liberty Media Formula One (FWONK): FWONK is a 2.35% position purchased in Q2 2017 at prices between $27.50 and $35. It is now at $37.85. The position had seen minor trimming in the last four quarters while this quarter saw a ~7% increase.

Thermo Fisher Scientific (TMO): TMO is a 1.80% position. It was purchased in Q4 2017 at prices between $182 and $200 and increased by ~190% in Q2 2018 at prices between $203 and $220. Next quarter saw a ~25% selling at prices between $206 and $249 and that was followed with a ~70% selling last quarter at prices between $209 and $252. There was an about turn this quarter: stake more than doubled at prices between $209 and $276. The stock is now at $284.

Middleby Corp. (MIDD): The MIDD position was established in Q2 2018 at prices between $99 and $132. There was a ~20% selling in Q3 2018 at prices between $99 and $130 and last quarter saw an additional ~75% selling at prices between $98 and $126. The stock is currently at ~$135 and the stake is now minutely small at 0.46%. There was a marginal increase this quarter.

Align Technology (ALGN) and WellCare Health Plans (WCG): These two positions were established last quarter and increased this quarter. The ~3% of the portfolio stake in ALGN was purchased at prices between $185 and $285 and the stock currently trades at $315. WCG is a ~2% of the portfolio position established at prices between $231 and $283 and the stock currently trades at $291.

Berry Global (BERY) and Illumina Inc. (ILMN): BERY is a 2.39% of the portfolio position first purchased in Q3 2018 at prices between $45.50 and $51 and the stock currently trades at $50.51. The 2.11% ILMN stake was established in Q2 2018 at prices between ~$275 and ~$365 and increased by ~200% last quarter at around the same price range. The stock is now at $337. This quarter saw a minor increase.

Note: Viking Global owns ~5.5% of Berry Global.

Aon plc (AON), AnaptysBio Inc. (ANAB), aTyr Pharma (LIFE), Centene Corp. (CNC), DaVita Inc. (DVA), Mylan N.V. (MYL), and Syneos Health (SYNH): These are very small (less than ~1% of the portfolio each) positions that saw increases this quarter.

Note: Viking Global has a ~10% stake in aTyr Pharma.

Stake Decreases:

Microsoft Corporation: MSFT is a large (top three) 6.61% 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 ~$133. Last quarter saw a ~28% increase at prices between $94 and $116 while this quarter there was similar selling at around the same price range.

Alibaba Group Holding): BABA is currently the third-largest 13F position at 6% of the portfolio. It was established in Q1 2018 at prices between $172 and $205. There was a whopping ~355% stake increase last quarter at prices between $156 and $198 and the stock currently trades at ~$160. There was a ~44% selling this quarter at prices between $131 and $187.

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

Netflix Inc. (NFLX): NFLX is a ~4% of the 13F portfolio stake. It was established in H2 2015 at prices between $93 and $131. The five quarters through Q2 2018 had seen the position almost sold out at prices between $146 and $417 realizing huge gains. The position was built back up last quarter at prices between $234 and $381. There was a one-third selling this quarter at around the same price range. The stock is now at $352.

Alphabet Inc. (GOOG) (GOOGL): The GOOG stake 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 follows: Q4 2017 saw a one-third reduction at prices between $952 and $1077 and that was followed with a ~38% selling next quarter at prices between $1005 and $1175. Q3 2018 saw the position almost sold out at prices between $1102 and $1268. The stake was built back up to a top five position last quarter at prices between $976 and $1203. The stock is now at $1080. This quarter saw a ~45% reduction at prices between $1016 and $1232.

Amazon.com Inc. (AMZN): AMZN is 3.18% 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 follows: the fairly large ~4% portfolio position as of Q4 2017 was almost sold out next quarter at prices between $1189 and $1598. The position was built back up to a ~2% portfolio stake in Q2 2018 at prices between $1370 and $1735. Last quarter saw a whopping 260% stake increase at prices between $1344 and $2005. The stock currently trades at $1861. There was a ~53% selling this quarter at prices between $1344 and $1819.

Adobe Systems (ADBE): ADBE is a medium-sized 3.58% portfolio stake established last quarter at prices between $205 and $275. This quarter saw a ~27% reduction at around the same price range. The stock currently trades at $280.

Visa Inc. (V): The 2.75% V stake was purchased in H2 2016 at prices between $74 and $83. 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. The four quarters through Q3 2018 saw the position almost sold out at prices between $105 and $150. The stake was rebuilt last quarter at prices between $122 and $151This quarter saw a ~50% selling at around the same price range. The stock currently trades at $171.

Facebook Inc. (FB): FB is a ~2% of the portfolio stake. 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. Q1 2018 saw a ~140% increase at prices between $152 and $193. There was a roughly one-third selling next quarter at prices between $155 and $202 and another ~70% reduction in Q3 2018 at prices between $159 and $218. The position was built back up last quarter at prices between $124 and $169. The stock currently trades at $175. This quarter saw a ~55% reduction at prices between $131 and $173.

Walt Disney (DIS): The 1.38% DIS stake was established in Q1 2018. It was increased by ~650% over the next two quarters at prices between $99 and $117. The position saw a 70% selling last quarter at prices between $100 and $119 and the stock is now at ~$137. This quarter also saw a one-third selling at prices between $106 and $115.

Moderna Inc. (MRNA): MRNA had an IPO last December. It was priced at $23 per share (~$18.50 first day close) and currently trades at $15.67. Viking Global’s stake goes back to 2015 when they made an investment in Moderna’s funding round. Their ownership stake in Moderna is currently at ~5.4%. There was a ~2% trimming this quarter.

Blueprint Medicines (BPMC), Boston Scientific (BSX), Catalent Inc. (CTLT), Diamondback Energy (FANG), Exact Sciences (EXAS), Arthur J. Gallagher & Co. (AJG), Jazz Pharmaceuticals (JAZZ), Progressive Corp. (PGR), and Zendesk Inc. (ZEN): These are small (less than ~1.5% of the portfolio each) stakes reduced this quarter.

Kept Steady:

Editas Medicine (EDIT), and Eidos Therapeutics (EIDX): These minutely small (less than ~0.5% of the portfolio each) stakes were kept steady this quarter.

Note: Viking Global has 5.4% ownership stake each in Eidos Therapeutics and Editas Medicine.

Note: Regulatory filings show Viking Global owning 22.79M shares (~75% of business) of Urovant Sciences (UROV). The stock is currently at $8.51.

The spreadsheet below highlights changes to Halvorsen’s 13F stock holdings in Q1 2019:

Ole Andreas Halvorsen - Viking Global Investors - Q1 2019 13F Report Q/Q Comparison

Disclosure: I am/we are long BABA, JD, MYL, NXPI. 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.