"Tracking Ole Andreas Halvorsen’s Viking Global Portfolio – Q2 2015 Update"
"Halvorsen's 13F portfolio increased from $25.81B to $26.47B. The number of positions decreased from 58 to 56.Viking Global added Amazon.com while increasing Google, Walgreens Boots Alliance, and Lyondellbasell.The top three positions are Walgreens Boots Alliance (7.86%), Google (7.84%), and Allergan plc (7.80%).This article is part of a series that provides an ongoing analysis of the changes made to Ole Andreas Halvorsen’s US stock portfolio on a quarterly basis. It is based on Viking Global’s regulatory  filed on 08/14/2015. Please visit our  series to get an idea of his investment philosophy and our  for the fund’s moves during Q1 2015.This quarter, Halvorsen’s US long portfolio increased 2.55% from $25.81B to $26.47B. The number of holdings decreased from 58 to 56. Largest five individual stock positions are Walgreens Boots Alliance, Google Inc., Allergan plc, Lyondellbasell, and Illumina Inc.Halvorsen is one of the most successful among the “tiger cubs” (protégés of Julian Robertson & his legendary Tiger Fund). To know more about "tiger cubs", check out the book .New Stakes:Amazon.com Inc. (AMZN): AMZN is a fairly large 3.74% of the US long portfolio stake established this quarter at prices between $370 and $446. The stock currently trades well outside that range at $494.Avago Technologies (AVGO): AVGO is a medium-sized 2.39% of the portfolio stake established this quarter at prices between $117 and $148. The stock currently trades below that range at $111.Note: In May, Avago agreed to acquire Broadcom in a cash-and-stock deal. Halvorsen had a very small stake in Broadcom. It was disposed of this quarter.Aetna Inc. (AET), Anthem Inc. (ANTM), and Cigna Inc. (CI): These small positions (less than ~1.5% of the portfolio each) were established this quarter. ANTM is back in the portfolio after a quarter’s gap. A very small stake was eliminated last quarter.Ameriprise Financial (AMP), Biogen Inc. (BIIB), McKesson Corp. (MCK), Twenty First Century Fox (FOXA), Universal Health Services (UHS), and Whiting Petroleum (WLL): These very small stakes (less than ~1% of the portfolio each) were established this quarter. A July 13, 2015 regulatory 13G filing shows Halvorsen owning 10.26M shares (5% of the business) of Whiting Petroleum.Note: The following minutely small stakes (less than 0.5% of the portfolio each) are also new this quarter: Ball Corp. (BLL), Cooper Companies (COO), Alexion Pharmaceuticals (ALXN), Deere & Company (DE), Kite Pharma (KITE), Allstate Corp (ALL), and TransDigm Group (TDG).Stake Disposals:Canadian National Railway (CNI): The 1.63% CNI stake was purchased last quarter at prices between $65 and $71 and eliminated this quarter at prices between $57.75 and $68.10. It currently trades at $56.30.Mondelez International (MDLZ): The fairly large 3.35% of the portfolio stake in MDLZ was eliminated this quarter at prices between $36.09 and $41.59. The bulk of the position was purchased in Q1 2014 at prices between $32 and $35.80. It was reduced by ~30% in Q3 2014 at prices between $34.20 and $38.56 and another 28% in the following quarter at prices between $32.10 and $39.20. Last quarter had seen a 68% increase at prices between $34.34 and $37.59. It currently trades at $43.20.Micron Technology (MU): The MU stake was first purchased in Q2 2013 at prices between $9.31 and $14.40. The position was increased by ~400% in Q3 2013 when almost 30M shares were purchased at prices between $12.59 and $18. The stake peaked that quarter at over 37M shares. Since then, the position was reduced significantly and the remaining stake was at 20M shares as of Q4 2014. Last quarter, the pattern reversed: ~55% increase at prices between $26.57 and $35.01. This quarter, the entire 3.27% portfolio stake was sold at prices between $18.73 and $29.52. The stock currently trades at $14.53.Ambev SA (ABEV), American Express (AXP), Broadcom Corporation (BRCM), Dollar Tree (DLTR), Eaton Corporation (ETN), Hartford Financial Services (HIG), HCA Holdings (HCA), Hilton Worldwide (HLT), Starwood Hotels & Resorts (HOT), and T-Mobile US (TMUS): These are very small (less than ~1% of the portfolio each) positions eliminated this quarter.Note: The following minutely small stakes (less than 0.5% of the portfolio each) as of last quarter were also dropped this quarter: Kraft Heinz Foods (HNZ) previously Kraft Foods Group, Eli Lilly & Co. (LLY), Qihoo 360 Technology (QIHU), Teva Pharmaceuticals (TEVA), Wayfair Inc. (W), XPO Logistics (XPO), and Transocean Ltd. (RIG). Although the position size relative to the portfolio was very small, it should be noted that Viking Global had a significant 4.7% ownership stake in Wayfair Inc.Stake Increases:Allergan plc (AGN) previously Actavis: AGN was first purchased in Q2 2013 and more than doubled the next quarter at prices between $97 and $147. The stake was reduced by ~70% in Q1 2014 at prices between $177 and $221. Q3 2014 saw the position doubled at prices between $203 and $248 and that was followed by a ~80% increase in Q4 2014 at prices between $217 and $270. Last quarter saw an additional one-third increase at prices between $255 and $317. This quarter also saw a ~11% increase. It is now Halvorsen’s third largest position at 7.80% of the US long portfolio. The stock currently trades at $299.Note: Part of the increase last quarter was due to the acquisition of Allergan by Actavis. Viking Global held ~2M shares of Allergan for which they received around 725K shares of Actavis. Actavis plc was later renamed Allergan plc.Crown Castle International (CCI): CCI is a 1.68% of the US long portfolio position established in Q4 2014 at prices between $75.11 and $84.75. The stake saw a ~22% increase this quarter at prices between $81.55 and $86.64. The stock currently trades at $82.66.CTrip.com Intl. (CTRP): CTRP is a 1.58% of the US long portfolio stake. The position saw a ~37% increase this quarter at prices between $58.62 and $84.63. The stock currently trades at $63.27.Note: A July 17, 2015 regulatory 13G filing shows Halvorsen owning 1.68M shares (5.2% of the business).Envision Healthcare (EVHC): EVHC is a 1.84% of the portfolio position established last quarter at prices between $33.91 and $38.69 and increased by ~80% this quarter at prices between $35.79 and $40.11. The stock currently trades at $42.16. Halvorsen controls ~6.6% of the business.Google Inc. (GOOG) (GOOGL): GOOG is the second-largest 13F position at 7.84%. It was established in Q3 2014 at prices between $563 and $596. Last quarter saw a huge 234% increase at prices between $493 and $575 and that was followed with another 57% increase this quarter at prices between $524 and $565. The stock currently trades at $612. The activity indicates a clear bullish bias.Lyondellbasell Industries (LYB): LYB was a top-five position at 4.59% of the US long portfolio in Q2 2014. It was reduced by over one-third the following quarter at prices between $97.65 and $115 and another 43% in Q4 2014 at prices between $70.61 and $109. Last quarter saw an about-turn: ~90% increase at prices between $74.36 and $91.55. There was a further 39% increase this quarter at prices between $87.80 and $106. The long-term stake has been in the portfolio since 2010. The bulk of the original position was purchased in 2010 and 2011 at much lower prices compared to the current price of $80.25.Mallinckrodt Ltd. (MNK) and Metlife (MET): These two positions were established last quarter and substantially increased this quarter. MNK is a 2.41% position established at prices between $94 and $133 and increased by ~53% this quarter at prices between $113 and $130. The stock is now below those ranges at $88.30. MET is a 2.49% stake bought at prices between $46.50 and $54.09 and increased by ~77% this quarter at prices between $50.25 and $57.70. It trades currently at $49.56.Pioneer Natural Resources (PXD): PXD is a fairly large 3.35% of the US long portfolio stake established in Q1 2014 at prices between $165 and $205. It was increased by almost 150% in Q2 2014 at prices between $181 and $233 and another two-thirds the following quarter in the $195 to $232 price-range. Last quarter saw a ~12% decrease while this quarter saw a ~10% increase. The stock currently trades at $119.Valeant Pharmaceuticals (VRX): VRX was the third-largest position at 5.96% of the US long portfolio as of Q4 2014. The stake was reduced by ~55% last quarter at prices between $143 and $205. This quarter saw a ~14% increase. The stock currently trades at $222 and the stake is at 3.87%. It is a long-term position that was established in 2010 when around 9.3M shares were purchased at around $20. Halvorsen has huge long-term gains on this position.Walgreen Boots Alliance (WBA) previously Walgreen Company: The 7.86% WBA stake is Viking’s largest 13F position. It was first purchased in Q4 2013 and substantially increased in Q1 2014 at prices between $53.80 and $69.09. Q2 2014 saw a turnaround as ~17% of the position was sold at prices between $63.40 and $76.08. Last quarter saw a ~23% decrease at prices between $73.75 and $88.23. This quarter the pattern reversed: ~69% increase at prices between $82.93 and $92.62. The stock currently trades at $85.61.Aon plc (AON), Avis Budget Group (CAR), Humana Inc. (HUM), Receptos Inc. (RCPT), and Vertex Pharmaceuticals (VRTX): These very small stakes (less than ~1% of the portfolio each) were increased this quarter. The position sizes are still too small to indicate a clear bias.Note: Halvorsen controls 4.2% of Avis Budget Group.Stake Decreases:Air Products & Chemicals (APD): APD is a medium-sized 3.05% of the US long portfolio position. It was first purchased in Q3 2014 at prices between $128 and $137 and increased by ~50% the following quarter at prices between $119 and $149. Last quarter saw a further ~46% increase at prices between $139 and $158. This quarter the pattern reversed: ~25% reduction at prices between $137 and $153. The stock currently trades at $138.Note: The business has seen activist involvement: Bill Ackman (Pershing Square) has a huge stake.Alibaba Group Holding (BABA): BABA is a 1.88% stake established in Q3 2014 at prices between $87 and $94 and reduced by just over two-thirds in the following quarter at prices between $85 and $119. Last quarter saw an about-turn as the stake was increased by ~87% at prices between $81.58 and $105. This quarter saw a ~13% trimming. The stock currently trades at $68.18.American International Group (AIG): AIG was a 1.79% stake established last quarter at prices between $48.87 and $56.42. It was reduced to a minutely small 0.31% position this quarter at prices between $54.79 and $63.32. The stock currently trades at $59.74.Bank of New York Mellon (BK): BK is a 1.33% of the US long portfolio positon established in Q3 2014 in the $37.61 to $41.53 price-range and reduced by ~30% the following quarter at prices between $35.95 and $41.53. This quarter saw a further ~24% reduction at prices between $40.21 and $43.95. The stock currently trades at $41.45. The activity indicates a bearish bias.Baidu Inc. (BIDU): The ~1% BIDU position was first purchased in Q3 2013 at prices between $91 and $158. The stake was reduced by ~63% in Q3 2014 at prices between $182 and $229. Q4 2014 saw an about-turn: 68% increase at prices between $199 and $250. Last quarter saw a ~16% reduction at prices between $203 and $233 and that was followed by a ~47% reduction this quarter at prices between $189 and $221. It currently trades at $152.91. Halvorsen is harvesting huge gains from this position.Cheniere Energy (LNG): LNG is a 2.96% of the US long portfolio position. It was established in Q3 2014 at prices between $70 and $84.29. The stake was increased by ~83% in Q4 2014 at prices between $61.90 and $80.03 and another 55% last quarter at prices between $66.61 and $81.40. This quarter saw a ~27% reduction at prices between $68.49 and $79.78. The stock currently trades at $61.93. Halvorsen controls ~4.8% of the business.Note: LNG is fairly popular with super investors. Seth Klarman (Baupost Group), John Griffin (Blue Ridge Capital), Stephen Mandel (Lone Pine Capital), and Carl Icahn have large stakes.Canadian Pacific Railway (CP): CP is a 3.19% of the US long portfolio position that was established in Q4 2013 at prices between $123 and $157. Q2 2014 saw a 25% reduction at prices between $144 and $185 and the following quarter saw another one-third decrease in the $180 to $209 price-range. In Q4 2014, the pattern reversed as there was a stake doubling at prices between $175 and $215. Last quarter saw another ~53% increase at prices between $175 and $194. This quarter saw a ~15% trimming. The stock currently trades at $141.Illumina Inc. (ILMN): ILMN was Viking Global’s second-largest individual stock position at 6.12% of the US long portfolio as of last quarter. It was reduced by ~42% this quarter at prices between $182 and $221. The bulk of the original stake was purchased in Q1 2014 at prices between $109 and $180. The stock currently trades at $200. Viking Global controls ~3.4% of the business.Mastercard Inc. (MA): MA is a 2.90% of the US long portfolio position that was increased by ~27% in Q2 2014 at prices between $68.68 and $77.47. Q3 2014 saw another one-third increase at prices between $73.47 and $78.32. In Q4 2014, the stake was reduced by over two-thirds at prices between $69.78 and $89.08. Last quarter saw a 92% increase at prices between $80.74 and $92.81 and this quarter saw a marginal reduction. The original position was purchased in Q4 2011 at prices between $31 and $38 and the stake has wavered since. The stock currently trades at $90.75.Mohawk Industries (MHK): MHK is a 3.11% of the US long portfolio stake that was increased by just over 80% in Q2 2014 at prices between $125 and $141. It was increased by another ~25% the following quarter at prices between $125 and $148. In Q4 2014 the pattern reversed as there was a 30% reduction at prices between $125 and $158. Last quarter saw a ~11% increase while this quarter saw a marginal reduction. The position was established in Q1 2014 at prices between $133 and $150 and the stock currently trades at $200. Halvorsen controls ~5.8% of the business.Sealed Air Corp. (SEE): SEE is a 2.49% of the US long portfolio stake. The original position was increased by ~350% last quarter at prices between $39.42 and $48.30. This quarter saw a ~11% trimming. The stock currently trades at $52.17. Viking Global controls ~6.1% of the business.Capital One Financial (COF), Citigroup Inc. (C), Davita Healthcare (DVA), Legg Mason Inc. (LM), Kansas City Southern (KSU), NXP Semiconductors NV (NXPI), and Thermo Fisher Scientific (TMO): These small positions (less than ~1.5% of the portfolio each) were reduced further this quarter. Halvorsen harvested huge long-term gains from Thermo Fisher Scientific.Note 1: In March, NXP agreed to acquire Freescale Semiconductor (FSL).Note 2: Halvorsen controls ~4.3% of Kansas City Southern.Kept Steady:None.The 13F portfolio also has the following minutely small (less than 0.5% of the portfolio each) stakes: Ball Corp. (BLL), Coopers Cos. (COO), Alexion Pharma. (ALXN), Deere & Co. (DE), Esperion Therapeutics Inc. (ESPR), Kite Pharma (KITE), Qunar Cayman (QUNR), Allstate Corp (ALL), TransDigm Group (TDG), and ProQR Therapeutics NV (PRQR).Note 1: Viking Global has a ~6% ownership stake in Esperion Therapeutics.Note 2: A July 17, 2015 regulatory 13G filing shows Halvorsen owning 10.16M shares (6.5% of the business) of Qunar Cayman.The spreadsheet below highlights changes to Halvorsen’s US stock holdings in Q2 2015:"