"Tracking Ole Andreas Halvorsen’s Viking Global Portfolio – Q4 2014 Update"
"Halvorsen's 13F portfolio decreased ~13% this quarter from $24.90B to $21.78B. The number of positions increased from 59 to 62.Viking Global increased Actavis plc to a fairly large stake while dropping Lowe’s Companies.The top-three positions are Illumina Inc. (7.03%), Walgreen Boots Alliance (6.62%), and Valeant Pharmaceuticals (5.96%) and they add up to ~20% of the portfolio.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 02/17/2015. Please visit our  series to get an idea of his investment philosophy and our  for the fund’s moves during Q3 2014.This quarter, Halvorsen’s US long portfolio decreased 12.54% from $24.90B to $21.78B. The number of holdings increased from 59 to 62. Largest five individual stock positions are Illumina Inc., Walgreen Boots Alliance, Valeant Pharmaceuticals, Actavis plc, and Pioneer Natural Rsources.New Stakes:Ambev SA (ABEV), Avis Budget Group (CAR), Crown Castle International (CCI), and NXP Semiconductors NV (NXPI): These are small (less than 2% of the US long portfolio each) positions established this quarter. ABEV is a 1.22% of the US long portfolio stake established this quarter at prices between $5.68 and $6.85. The stock currently trades at $6.36. The 1.53% CAR stake was established at prices between $46.62 and $67.46 and the stock is currently at $62.45. Halvorsen controls 4.7% of the business. CCI is a 1.60% of the US long portfolio position established this quarter at prices between $75.11 and $84.75 and the stock currently trades outside that range at $88.71. NXPI is a 1.90% of the US long portfolio stake established this quarter at prices between $53.90 and $77.85 and the stock is currently well above that range at $84.66.Anthem Inc. (ANTM), Broadcom Corporation (BRCM), Coca-Cola Enterprises (CCE), Eaton Corporation (ETN), Hartford Financial Services (HIG), Ingersoll-Rand plc (IR), Legg Mason Inc. (LM), Potash Corporation (POT), Sealed Air Corp. (SEE), Shire plc (SHPG), and Wal-Mart Stores (WMT): These are very small (less than ~1% of the portfolio each) positions established this quarter. Viking Global significantly increased the stake in SEE after the quarter ended: the latest regulatory filing shows them owning 12.1M shares (5.7% of business).Stake Disposals:AbbVie Inc. (ABBV): ABBV was a medium-sized 2.50% of the US long portfolio stake established last quarter at prices between $52.05 and $59.62. The position was disposed of this quarter at prices between $52.90 and $70. The stock currently trades at $61.30.Facebook Inc. (FB): The original FB stake was established in Q3 2013 at prices between $24 and $51. The position was increased by a stunning 315% next quarter at prices between $47 and $58. Q1 2014 saw an about-turn as the stake was reduced by over half at prices between $53 and $72. The selling continued in Q2 2014 with another ~55% reduction at around the same price range. Last quarter, the pattern reversed: ~27% increase at prices between $62.76 and $79. The entire 1.65% position as of last quarter was eliminated this quarter at prices between $72.63 and $81.45. The stock currently trades at $79.89.Lowe’s Companies (LOW): The LOW position was fairly large at 4.13% of the US long portfolio as of last quarter. The quarter had seen a 15% reduction in the $47.20 to $54.11 price-range. The stake was first purchased in Q3 2013 at prices between $41 and $48. The position was sold this quarter at prices between $51.21 and $68.80. The stock currently trades at $73.56. The stage disposal of a large position indicates a clear bearish bias.Netflix Inc. (NFLX): NFLX was a 1.92% of the US long portfolio established in Q2 2014 at prices between $314 and $450. It was reduced by ~20% last quarter in the $423 to $485 price-range and eliminated this quarter at prices between $316 and $467. The stock currently trades at $478.Newfield Exploration (NFX): The original NFX stake was purchased in Q2 2014 at prices between $27.65 and $44.20 and increased by ~70% last quarter at prices between $37.07 and $44.92. This quarter saw an about-turn as the entire stake was disposed of at prices between $23.56 and $37.07. The stock currently trades at $32.09.Regeneron Pharmaceuticals (REGN): REGN was a 1.56% of the US long portfolio position as of last quarter. It was eliminated this quarter at prices between $328 and $435. The stake was established in Q1 2014 at prices between $267 and $348. It was increased by a whopping 180% the following quarter at prices between $277 and $313. Last quarter saw an about turn as the position was reduced by almost two-thirds at prices between $277 and $365. The stock currently trades at $424.Twenty First Century Fox (FOXA): FOXA stake was first purchased in Q3 2013 at prices between $30 and $33.50. The position was at 5.09% of the portfolio as of Q1 2014. In Q2 2014, the stake was reduced by almost two-thirds at prices between $32 and $36.21 and that was followed by a ~24% reduction last quarter at prices between $31.30 and $36.30. This quarter, the remaining 1.39% position was sold at prices between $31.77 and $39.01. The stock currently trades at $35.30. The activity indicates a bearish bias.Alexion Pharmaceuticals (ALXN) and Precision Castparts (PCP): These small positions (less than ~2% of the portfolio each) were significantly increased last quarter but eliminated this quarter. ALXN was a very long-term holding first purchased in 2011. PCP was a very small position that was increased by just over 450% last quarter at prices between $229 and $259. The disposal was at prices between $218 and $243 and the stock is currently at $220.Aon plc (AON), Bank of America (BAC), Golar LNG (GLNG), Liberty Global plc (LBTYA) (LBTYK), Ralph Lauren (RL), and SBA Communications (SBAC): These were very small (less than ~1% of the US long portfolio each) positions that were disposed of this quarter.Stake Increases:Actavis plc (ACT): ACT was first purchased in Q2 2013 and more than doubled the next quarter at prices between $97 and $147. The original stake was reduced by ~70% in Q1 2014 at prices between $177 and $221. Last quarter saw a stake doubling at prices between $203 and $248 and that was followed by a ~80% increase this quarter at prices between $217 and $270. The position is now fairly large at 5.42% of the US long portfolio. The stock currently trades at $296. Halvorsen is sitting on huge gains on this position.Note: In November 2014, Actavis agreed to buy Allergan plc (AGN) and since then the stock has returned ~15%.Air Products & Chemicals (APD): APD is a 3.55% of the US long portfolio position purchased last quarter at prices between $128 and $137 and increased by ~50% this quarter at prices between $119 and $149. The stock currently trades at $158.Note: The business has seen activist involvement with Bill Ackman having established a huge ~19% of his portfolio stake.Baidu Inc. (BIDU): The BIDU position was first purchased in Q3 2013 at prices between $91 and $158. The stake was reduced by ~63% last quarter at prices between $182 and $229. This quarter saw an about-turn: 68% increase at prices between $199 and $250. It currently trades at $210.Cheniere Energy (LNG): LNG is a 1.75% of the US long portfolio position established last quarter at prices between $70 and $84.29. The stake was increased by ~83% this quarter at prices between $61.90 and $80.03. The stock currently trades at $74. For investors attempting to follow Viking, LNG is a good option to consider for further research. Halvorsen controls ~6.5% of the business.Note: LNG is fairly popular with super investors. Seth Klarman (Baupost) also has a huge ~19% of the portfolio stake (24.8M shares: ~10% of business).Canadian Pacific Railway (CP): CP is a 3.58% 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 last quarter saw another one-third decrease in the $180 to $209 price-range. This quarter the pattern reversed as there was a stake doubling at prices between $175 and $215. The stock currently trades at around $190.Davita Healthcare (DVA): DVA is a 1.55% of the US long portfolio position that was increased by just over 80% in Q2 2014 at prices between $67 and $73. The original stake was established in Q1 2014 at prices between $62.74 and $70. Last quarter saw a ~14% increase in the $70.44 to $75 price-range and that was followed by a ~12% increase this quarter at prices between $72.03 and $78.07. The stock currently trades at $73.76.Mondelez International (MDLZ): The bulk of the 2.37% MDLZ position was purchased in Q1 2014 at prices between $32 and $35.80. It was reduced by ~30% last quarter at prices between $34.20 and $38.56. There was an about-turn this quarter as the stake was reduced by 28% at prices between $32.10 and $39.20. It currently trades at $36.97.Capital One Financial (COF), Delta Air Lines (DAL), Dollar Tree (DLTR), HCA Holdings (HCA), and Hilton Worldwide (HLT): These small positions (less than ~2% of the portfolio each) were increased significantly this quarter. The activity indicates a bullish bias toward these businesses.Stake Decreases:Alibaba Group Holding (BABA): BABA is a 1.77% stake established last quarter at prices between $87 and $94 and reduced by just over two-thirds this quarter at prices between $84.95 and $119. The stock currently trades at $86.64.Bank of New York Mellon (BK): BK is a 2.21% of the US long portfolio positon established last quarter in the $37.61 to $41.53 price-range and reduced by ~30% this quarter at prices between $35.95 and $41.53. The stock currently trades at $39.44.Citigroup Inc. (C): C is a medium-sized 2.79% of the US long portfolio position established last quarter at prices between $46.90 and $53.66 and reduced by ~25% this quarter at prices between $49.68 and $56.37. The stock currently trades at $51.78.Google Inc. (GOOG) (GOOGL): GOOG is a 1.81% of the US long portfolio position established last quarter at prices between $563 and $596 and reduced by ~20% this quarter at prices between $495 and $577. The stock currently trades at $539.Illumina Inc. (ILMN): ILMN is Viking Global’s largest individual stock position at 7.03% of the US long portfolio. The stake was increased by ~8% last quarter at prices between $159 and $183. This quarter saw minor selling. The bulk of the current stake was purchased in Q1 2014 at prices between $109 and $180. The stock currently trades at $203. Viking Global controls 5.8% of the business.Kansas City Southern (KSU): KSU is a 1.79% of the US long portfolio position established in Q1 2014 at prices between $91 and $124. It was increased by ~65% the following quarter at prices between $95 and $108 and another ~40% last quarter at prices between $107 and $122. This quarter saw a reversal: 25% reduction at prices between $110 and $126. The stock currently trades at $117. Viking Global controls ~5% of the business.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 last quarter at prices between $97.65 and $115 and another 43% this quarter at prices between $70.61 and $109. 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 $90.47. Halvorsen is harvesting large long-term gains from this position.Mastercard Inc. (MA): MA is a 1.70% of the US long portfolio position that was increased by ~27% in Q2 2014 at prices between $68.68 and $77.47. Last quarter saw another one-third increase at prices between $73.47 and $78.32. This quarter, the stake was reduced by over two-thirds at prices between $69.78 and $89.08. The original position was purchased in Q4 2011 at prices between $31 and $38 and the position has wavered since. The stock currently trades at $90.79.Micron Technology (MU): The 3.24% 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 is at 20M shares. This quarter saw minor additional selling. The stock currently trades at $32.03. Halvorsen is continuing to harvest huge long-term gains from this position.Mohawk Industries (MHK): MHK is a 2.82% 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% last quarter at prices between $125 and $148. This quarter the pattern reversed as there was a 30% reduction at prices between $125 and $158. The position was established in Q1 2014 at prices between $133 and $150 and the stock currently trades at $184. Halvorsen controls 5.5% of the business.Pioneer Natural Resources (PXD): PXD is a fairly large 4.50% 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 last quarter in the $195 to $232 price-range. The stock currently trades near the low-end of his purchase price ranges at $159. This quarter saw minor selling. For investors attempting to follow Halvorsen, PXD is a good option to consider for further research.Salix Pharmaceuticals (SLXP): SLXP is a 0.92% of the US long portfolio position established in Q1 2014 at prices between $89 and $115. It was increased by 86% in the following quarter at prices between $97 and $125. This quarter, the stake was reduced by ~36% at prices between $91.47 and $156. The stock currently trades at $158. Halvorsen controls 2.7% of the business.Thermo Fisher Scientific (TMO): The 3.33% TMO stake was first established in Q2 2013 when around 8.7M shares were purchased at prices between $77 and $88. It was increased to 10.6M shares the following quarter at prices between $85 and $94. The position was reduced since Q4 2013 and the current stake is at 5.8M shares. Q2 2014 saw a ~15% reduction at prices between $113 and $122 and this quarter saw another 28% reduction at prices between $110 and $129. The stock currently trades at $131. Viking Global is harvesting large long-term gains from this position.Valeant Pharmaceuticals (VRX): VRX is the third-largest position at 5.96% of the US long portfolio. It was increased by 27% in Q2 2014 at prices between $117 and $138. Last quarter, the stake was sold down by ~16% at prices between $107 and $131 and this quarter saw another ~9% reduction at prices between $113 and $146. It is a long-term position that was established in 2010 when around 9.3M shares were purchased at around $20. The stock currently trades at $173. Halvorsen is harvesting huge long-term gains from this position.Walgreen Boots Alliance (WBA) previously Walgreen Company: The 6.62% WBA stake is Viking’s second-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 and since then the position has wavered - minor increase last quarter followed by marginal decrease this quarter. The stock currently trades at $77.13.Allergan Inc. (AGN): AGN is a 1.92% of the US long portfolio position established in Q2 2014 at prices between $116 and $174 and increased by just over 180% last quarter at prices between $152 and $214. This quarter saw a ~14% reduction at prices between $177 and $214. The stock currently trades at $234.Sandisk Corporation (SNDK): SNDK was a very small 0.85% of the US long portfolio stake established last quarter at prices between $90.79 and $108. It was almost eliminated this quarter at prices between $82.80 and $106. The stock currently trades at $82.63.Visa Inc. (V): V is a long-term position first purchased in 2012. Around 3.5M shares were purchased at the time at prices between $100 and $150. The position size has wavered and last quarter it was at 3M shares. This quarter saw a huge 70% reduction at prices between $200 and $268 and the remaining stake is at 1.10% of the portfolio. The stock currently trades at $273.Kept Steady:None.The 13F portfolio also has the following minutely small (less than 0.5% of the portfolio each) stakes: Acadia Pharmaceuticals (ACAD), Cigna Corporation (CI), Ctrip.com Intl. (CTRP), Humana Inc. (HUM), Lam Research (LRCX), Allegion plc (ALLE), MGM Resorts International (MGM), Qunar Cayman (QUNR), Receptos Inc. (RCPT), Transocean Ltd. (RIG), Alexion Pharmaceuticals (ALXN), Sandisk Corporation (SNDK), Universal Health Services (UHS), Vertex Pharmaceuticals (VRTX), Wayfair Inc. (W), and Ameriprise Financial (AMP). Although the position sizes relative to the portfolio are very small, it should be noted that Viking Global has significant ownership in the following businesses: 4.7% in Wayfair Inc. and 3% in Acadia Pharmaceuticals.The spreadsheet below highlights changes to Halvorsen’s US stock holdings in Q4 2014:"