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Tracking Ole Andreas Halvorsen's Viking Global Portfolio - Q2 2019 Update

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Includes: ADBE, ADPT, AIG, AIZ, AJG, ALGN, AMZN, ANAB, ANTM, AON, AOS, ATH, ATVI, AVTR, BA, BABA, BBIO, BERY, BMRN, BPMC, BSX, BURL, CCK, CHWY, CNC, COUP, CRM, CTLT, CVET, DIS, DVA, EDIT, EIDX, EQH, EXAS, FANG, FB, FWONK, GDI, GOOG, GOOGL, GRUB, ILMN, JAZZ, JD, LIFE, LOW, LYB, MELI, MIDD, MNST, MPC, MRNA, MSFT, MU, MYL, NFLX, NVDA, NVRO, NXPI, PGR, RTN, SQ, SYNH, TMO, UBER, UNH, UTX, V, WCG, WORK, ZBH, ZEN
by: John Vincent
Summary

Halvorsen's 13F portfolio value increased from $17.44B to $22.29B. The number of positions increased from 56 to 58.

Viking Global increased Amazon, Facebook, and JD.com while decreasing Alibaba Group Holdings and dropping Marathon Petroleum.

The top three positions are Adaptive Biotechnologies, Amazon, and Anthem. Together, they are at ~22% 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 08/14/2019. 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 Q1 2019.

This quarter, Halvorsen's 13F stock portfolio value increased ~28% from $17.44B to $22.29B. The number of holdings increased from 56 to 58. Largest five individual stock positions are Adaptive Biotechnologies (NASDAQ:ADPT), Amazon (NASDAQ:AMZN), Anthem (NYSE:ANTM), Facebook (NASDAQ:FB), and UnitedHealth (NYSE:UNH). They add up to one-third 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:

Adaptive Biotechnologies (ADPT): ADPT is currently Viking Global's largest 13F position at 8.32% of the portfolio. It came about as a result of Adaptive's IPO in June. Viking Global was a majority investor in Adaptive. They control ~31% of the business. Shares started trading at ~$48 and currently goes for $43.83.

Boeing Inc. (BA): BA is a fairly large 4.54% of the portfolio stake established this quarter at prices between $337 and $396, and the stock currently trades at $363.

BridgeBio Pharma (BBIO), Monster Beverage (MNST), Salesforce.com (CRM), and Uber Technologies (UBER): These are medium-sized new positions established during the quarter. UBER and BBIO had IPOs during the quarter. The BBIO stake goes back to earlier funding rounds prior to the IPO. Viking Global controls ~21% of the business. The stock started trading at ~$27 per share and currently goes for ~$31. The 2.54% MNST position was purchased at prices between $52.50 and $66 and it is now at $57.17. CRM is a ~2% portfolio stake established at prices between $145 and $166, and it is now at $151. UBER started trading at ~$41.50 and currently goes for ~$32. Viking Global's stake is at 2.78% of the portfolio.

Note: CRM had a recent roundtrip: it 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. The position had wavered and was disposed last quarter at prices between $121 and $167.

Avantor Inc. (AVTR), Square Inc. (SQ), Slack Technologies (WORK), Lowe's Companies (LOW), Coupa Software (COUP), and A. O. Smith (AOS): These are very small (less than ~1% of the portfolio each) stakes established this quarter. AVTR and WORK had IPO's during the quarter.

Grubhub Inc. (GRUB), Raytheon Co. (RTN), Athene Holding (ATH), Chewy Inc. (CHWY), Gardner Denver Holdings (GDI), Assurant Inc. (AIZ), and American International Group (AIG): These are minutely small (less than ~0.50% of the portfolio each) positions established this quarter. CHWY had an IPO in June. Shares started trading at $35 and currently goes for $32.79.

Stake Disposals:

Marathon Petroleum (MPC): MPC was a fairly large 4.72% position built in Q3 2018 at prices between $70 and $86. Next quarter saw another ~85% stake increase at prices between $54 and $86. The position was disposed this quarter at prices between $46 and $63.50. The stock is now at $52.47.

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 next quarter saw an additional ~75% selling at prices between $98 and $126. The minutely small ~0.50% stake that remained was disposed this quarter. The stock is currently at ~$114.

Thermo Fisher Scientific (TMO): TMO was 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 in Q4 2018 at prices between $209 and $252. There was an about turn last quarter: stake more than doubled at prices between $209 and $276. The disposal this quarter was at prices between $258 and $299. The stock is now at $295.

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 in Q4 2018 at prices between $100 and $119. Last quarter also saw a one-third selling at prices between $106 and $115. The elimination this quarter was at prices between $112 and $142. The stock is currently at ~$140.

Burlington Stores (BURL), Diamondback Energy (FANG), Arthur J. Gallagher & Co. (AJG), Jazz Pharmaceuticals (JAZZ), Lyondellbasell Inds. (LYB), Mylan NV (MYL),

Nevro Corp. (NVRO), Progressive Corp. (PGR), Zendesk Inc. (ZEN), and Zimmer Biomet Holdings (ZBH): These are very small (less than ~1% of the portfolio each) stakes disposed this quarter.

Stake Increases:

Amazon.com Inc. (AMZN): AMZN is top three 6.82% 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. Recent activity follow: Q4 2018 saw a 260% stake increase at prices between $1,344 and $2,005 and that was followed with a ~53% selling last quarter at prices between $1,344 and $1,819. This quarter saw a ~160% stake increase at prices between $1,693 and $1,963. The stock currently trades at $1,834.

Facebook Inc. (FB): FB is a top five 6.12% of the portfolio stake. It was purchased in Q1 2016 at prices between $94 and $116. The position has wavered. Recent activity follow. There was a roughly one-third selling in Q2 2018 at prices between $155 and $202 and another ~70% reduction next quarter at prices between $159 and $218. The position was built back up in Q4 2018 at prices between $124 and $169. The stock currently trades at $188. Last quarter saw a ~55% reduction at prices between $131 and $173, while this quarter there was a 230% stake increase at prices between $164 and $196.

UnitedHealth (UNH): UNH is a top five 5.27% 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. Q4 2018 saw a ~130% stake increase at prices between $233 and $286 and that was followed with a ~31% stake increase last quarter at prices between $233 and $272. This quarter also saw a ~30% stake increase at prices between $217 and $252. The stock is currently at $229.

JD.com (JD) and MercadoLibre Inc. (MELI): JD is a fairly large 4.33% of the portfolio stake purchased last quarter at prices between $19.75 and $31.25 and increased by ~175% this quarter at prices between $25.75 and $31.50. The stock currently trades at $31.08. MELI is a 2.35% of the portfolio stake purchased last quarter at prices between $258 and $518 and increased by ~40% this quarter at prices between $482 and $641. The stock is now at ~$598.

Netflix Inc. (NFLX): NFLX is a 3.41% 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 in Q4 2018 at prices between $234 and $381. There was a one-third selling last quarter at around the same price range. The stock is now at ~$290. This quarter saw a marginal increase.

Boston Scientific (BSX) and Centene Corp. (CNC): The 1.77% BSX stake was established in H2 2018 at prices between $33 and $38.50. Last quarter saw a ~38% selling at prices between $32.90 and $40.75 while this quarter there was a 185% stake increase at prices between $34.90 and $43. The stock is currently at $43.45. Most of the 3.29% of the portfolio stake in CNC was purchased this year at prices between $47 and $66. The stock is now below that range at $45.89. For investors attempting to follow, CNC is a good option to consider for further research.

Illumina Inc. (ILMN): The 2.27% ILMN stake was established in Q2 2018 at prices between ~$275 and ~$365 and increased by ~200% next quarter at around the same price range. The stock is now below the low end of that range at $270. This quarter saw a ~15% stake increase. For investors attempting to follow, ILMN is a good option to consider for further research.

Activision Blizzard (ATVI) and Micron Technology (MU): These two positions were purchased last quarter and increased this quarter. The 1.28% ATVI stake was purchased at prices between $40 and $51 and increased by ~60% this quarter at prices between $42 and $50. It currently goes for $54.58. MU is a 1.11% of the portfolio position established last quarter at prices between $31 and $44 and increased by ~180% this quarter at prices between $32.50 and $44. The stock is now at ~$49.

Aon plc (AON), AXA Equitable (EQH), Crown Holdings (CCK), DaVita Inc. (DVA), and Catalent Inc. (CTLT): These very small stakes (less than ~1% of the portfolio each) were increased this quarter.

Stake Decreases:

Anthem Inc. (ANTM): ANTM is a top three 6.58% of the portfolio position. 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 at ~$249. Last three quarters had seen a ~40% further increase at prices between $236 and $318 while this quarter there was a ~15% trimming.

Microsoft Corporation (MSFT): MSFT is a fairly large 4.63% 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. The position has wavered. Recent activity follow. Q4 2018 saw a ~28% increase at prices between $94 and $116. Last two quarters have seen a ~40% reduction at prices between $97.40 and $138. The stock is now at $139.

United Technologies (UTX): UTX is a 3.94% 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. It is now at ~$134. Last two quarters have seen only minor adjustments.

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

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 follow: Q3 2018 saw the position almost sold out at prices between $1,102 and $1,268. The stake was built back up to a top five position next quarter at prices between $976 and $1,203. Last quarter saw a ~45% reduction at prices between $1,016 and $1,232 and that was followed with a ~23% selling this quarter at prices between $1,036 and $1,288. The stock is now at $1,205 and the stake is at 1.92% of the portfolio.

Liberty Media Formula One (FWONK): FWONK is a 1.91% position purchased in Q2 2017 at prices between $27.50 and $35. It is now at $42.79. The position had seen minor trimming last year while last two quarters have seen minor increases.

Adobe Systems (ADBE): ADBE is a 1.61% portfolio stake established in Q4 2018 at prices between $205 and $275. Last quarter saw a ~27% reduction at around the same price range. There was a ~40% selling this quarter at prices between $259 and $302. The stock currently trades at $285.

BioMarin Pharma (BMRN): The ~1% BMRN stake was built last year at prices between $76 and $106. It is currently at ~$72. There was a ~50% selling this quarter at prices between $80 and $94.

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 $15.88. Viking Global's stake goes back to 2015 when they made an investment in Moderna's funding round. This quarter saw a ~50% selling at prices between $13.50 and $28.50. Their ownership stake in Moderna is currently at ~2.7%.

Alibaba Group Holdings (BABA): BABA was the third-largest 13F position at 6% of the portfolio as of last quarter. It was established in Q1 2018 at prices between $172 and $205. There was a whopping ~355% stake increase in Q4 2018 at prices between $156 and $198. There was a ~44% selling last quarter at prices between $131 and $187. This quarter saw the position almost sold out at prices between $149 and $195. The stock currently trades at ~$177.

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

Berry Global (BERY): BERY was a 2.39% of the portfolio position first purchased in Q3 2018 at prices between $45.50 and $51. This quarter saw the position almost sold out at prices between $47 and $59. The stock is now at $38.77.

Visa Inc. (V): The Visa stake was purchased in H2 2016 at prices between $74 and $83. There was an ~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 in Q4 2018 at prices between $122 and $151. Last quarter saw a ~50% selling at around the same price range, and that was followed with a ~90% selling this quarter at prices between $157 and $174. The stock currently trades at $186. The stake is now minutely small at 0.30% of the portfolio.

Align Technology (ALGN), AnaptysBio Inc. (ANAB), Blueprint Medicines (BPMC), Covetrus Inc. (CVET), Eidos Therapeutics (EIDX), Exact Sciences (EXAS), Nvidia Corp. (NVDA), NXP Semiconductors (NXPI), Syneos Health (SYNH), and WellCare Health Plans (WCG): These very small (less than ~1% of the portfolio each) positions were reduced during the quarter.

Kept Steady:

aTyr Pharma (LIFE) and Editas Medicine (EDIT): These minutely small (less than ~0.10% of the portfolio each) stakes were kept steady this quarter.

Note: Viking Global has a 5.4% ownership stake in Editas Medicine and a ~10% stake in aTyr Pharma.

The spreadsheet below highlights changes to Halvorsen's 13F stock holdings in Q2 2019:

Ole Andreas Halvorsen - Viking Global

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