"Tracking Ole Andreas Halvorsen’s Viking Global Portfolio – Q3 2014 Update"
"Halvorsen's 13F portfolio increased ~9% this quarter from $22.91B to $24.90B. The number of positions decreased from 62 to 59.Viking Global added stakes in Alibaba Group Holdings and Citigroup Inc. while dropping Walgreen Company.The top-three positions are Illumina Inc. (5.69%), Pioneer Natural Resources (5.37%), and Valeant Pharmaceuticals (5.25%) which together is at around 16% 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 11/14/2014. Please visit our  series to get an idea of his investment philosophy and for the fund’s moves during Q2 2014.This quarter, Halvorsen’s US long portfolio increased 8.72% from $22.91B to $24.90B. The number of holdings decreased from 62 to 59. Largest five individual stock positions are Illumina Inc., Pioneer Natural Resources, Valeant Pharmaceuticals, Valero Energy, and Lowe’s Companies.New Stakes:AbbVie Inc. (ABBV): ABBV is a medium-sized 2.50% of the US long portfolio stake established this quarter at prices between $52.05 and $59.62. The stock currently trades outside that range at $67.78. The significant stake establishment indicates a bullish bias.Air Products & Chemicals (APD): APD is a 1.86% of the US long portfolio position purchased this quarter at prices between $128 and $137 and the stock currently trades at $145. Note: The business has seen activist involvement with Bill Ackman having established a huge ~20% of his portfolio stake.Alibaba Group Holding (BABA): BABA is a large 4.06% stake established this quarter at prices between $87 and $94. The stock currently trades at $114. Note: The stock saw significant super-investor interest since its IPO with Dan Loeb leading with a huge ~8% position.Cheniere Energy (LNG): LNG is a 1.75% of the US long portfolio position established this quarter at prices between $70 and $84.29. The stock currently trades at $73.16.Citigroup Inc. (C): C is a medium-sized 3.10% of the US long portfolio position established this quarter at prices between $46.90 and $53.66 and the stock currently trades just outside that range at $54.40. The significant stake establishment indicates a clear bullish bias.Google Inc. (GOOG) (GOOGL): GOOG is a 2.18% of the US long portfolio position established this quarter at prices between $563 and $596. The stock currently trades below that range at $540. For investors attempting to follow Halvorsen, GOOG is a good option to consider for further research.Aon plc (AON), Bank of America (BAC), Dollar Tree (DLTR), Golar LNG (GLNG), Liberty Global plc (LBTYA) (LBTYK), and Sandisk Corporation (SNDK): These are very small (less than ~1% of the US long portfolio each) positions established this quarter. As the position sizes are very small, the stake establishments do not indicate a clear bias.Stake Disposals:Cameron International (CAM): CAM was a 1.45% of the US long portfolio position that was reduced by ~37% last quarter at prices between $60.66 and $67.75. This quarter, the stake was eliminated at prices between $66.38 and $74.33. The original position was purchased in Q4 2013 at prices between $53.25 and $65.11 and was increased substantially in Q1 2014 at prices between $56.73 and $64.06. The stock currently trades at $59.20. The about-turn indicates a bearish bias.Constellation Brands (STZ): The small 1.27% STZ stake was reduced by ~53% last quarter at prices between $78 and $89 and eliminated this quarter at prices between $83 and $91. The position was first established in Q3 2013 with the bulk purchased in Q4 2013 at prices between $57 and $71. The stock currently trades at $94.23.Michael KORS (KORS): KORS was a fairly large 3.79% of the US long portfolio position in Q2 2013 when close to 10M shares were purchased at around $55 per share. The stake was sold every quarter since and by Q1 2014 the position showed a total reduction of ~50% from the peak. Last quarter, the remaining position was reduced by 60% at prices between $86.59 and $97 and this quarter saw the disposal at prices between $71.17 and $91.38. The stock currently trades at $75.53. Halvorsen harvested large gains from this position.Time Warner Inc. (TWX): The 2.41% TWX position was sold off this quarter at prices between $70.25 and $87.23. It was first purchased in 2010 but was quickly sold. The current stake was established in 2012 when ~20M shares were purchased at around $38 per share. The position had wavered since. Q1 2014 saw a ~60% increase at prices between $61.52 and $70 and the stake stood at 21.6M shares (5.93%). Last quarter, the position was reduced by ~64% at prices between $62.76 and $71. The stock currently trades at $81.43.Walgreen Company (WAG): The large 6.52% WAG stake was Viking’s largest 13F position as of last quarter. It was first purchased in Q4 2013 and substantially increased in Q1 2014 at prices between $53.80 and $69.09. Last quarter saw a turnaround as ~17% of the position was sold at prices between $63.40 and $76.08 and this quarter the entire position was sold at prices between $59.21 and $74.13. The stock currently trades at $67.73. The quick about-turn on a very large position indicates a clear bearish bias.Capital One Financial (COF): COF was a fairly large 3.67% position as of last quarter. It is a very long term position that has been in the portfolio since 2009. The last significant buying happened in Q2 2013 when around 3.8M shares were acquired at prices between $54 and $64. This quarter, the entire stake was eliminated at prices between $78.04 and $84.95. The stock currently trades at $82.10. The elimination of a fairly large long-term position indicates a clear bearish bias.Apple Inc. (AAPL), Autodesk (ADSK), Cognizant Technology (CTSH), Workday Inc. (WDAY) & Universal Health Services (UHS): These are very small positions (less than ~1% of the US long portfolio each) that were dropped this quarter.Stake Increases:Davita Healthcare (DVA): DVA is a 1.17% of the US long portfolio position that was increased by just over 80% last quarter at prices between $67 and $73. The original stake was established in Q1 2014 at prices between $62.74 and $70. This quarter saw a ~14% increase in the $70.44 to $75 price-range. The stock currently trades at $74.49. The activity indicates a bullish bias.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 last quarter with another ~55% reduction at around the same price range. This quarter, the pattern reversed: ~27% increase at prices between $62.76 and $79. The stock currently trades at $73.99 and the remaining stake is at 1.65% of the portfolio.Kansas City Southern (KSU): KSU is a 2.07% of the US long portfolio position established in Q1 2014 at prices between $91 and $124. It was increased by ~65% last quarter at prices between $95 and $108 and another ~40% this quarter at prices between $107 and $122. The stock currently trades at $125. The aggressive build-up indicates a bullish bias.Mastercard Inc. (MA): MA is a 3.88% of the US long portfolio position that was increased by ~27% last quarter at prices between $68.68 and $77.47. This quarter saw another one-third increase at prices between $73.47 and $78.32. 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 $84.99.Micron Technology (MU): The 2.83% 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 sold every quarter and the remaining stake was at 17.7M shares (2.55%) as of last quarter. This quarter saw an about turn with a ~16% increase at prices between $29.68 and $34.64. The stock currently trades at $34.73.Mohawk Industries (MHK): MHK is a 3.07% of the US long portfolio stake that was increased by just over 80% last quarter at prices between $125 and $141. It was increased by another ~25% this quarter at prices between $125 and $148. The position was established in Q1 2014 at prices between $133 and $150 and the stock currently trades at $154.Pioneer Natural Resources (PXD): PXD is a 5.37% of the US long portfolio stake established in Q1 2014 at prices between $165 and $205. It was increased by almost 150% last quarter at prices between $181 and $233 and another two-thirds this quarter in the $195 to $232 price-range. The stock currently trades near the low-end of his purchase price ranges at $171. The aggressive stake build-up indicates a clear bullish bias. For investors attempting to follow Halvorsen, PXD is a good option to consider for further research.Valero Energy (VLO): VLO was a very small 0.92% stake as of last quarter. The position was first purchased in Q1 2013 and substantially increased in Q2 2013 at prices between $34 and $47. The stake had wavered since. Last quarter saw an almost two-third reduction at prices between $51 and $59. This quarter, the position was increased by almost 400% at prices between $46.27 and $54.25. The stock currently trades at $50.81 and the current stake is at 4.93%. The aggressive buying indicates a bullish bias.Illumina Inc. (ILMN): ILMN is Viking Global’s largest individual stock position at 5.69% of the US long portfolio. The stake was increased by ~8% this quarter at prices between $159 and $183. The bulk of the current stake was purchased in Q1 2014 at prices between $109 and $180. The stock currently trades at $191.Actavis plc (ACT), Alexion Pharmaceuticals (ALXN), Allergan Inc. (AGN), Precision Castparts (PCP), & Visa Inc. (V): These are medium-sized positions (between 1% and 3% of the US long portfolio each) increased substantially this quarter. The activity indicates a bullish bias toward these businesses.Hilton Worldwide (HLT), Newfield Exploration (NFX), and SBA Communications (SBAC):  These are very small (less than ~1% of the US long portfolio each) stakes increased this quarter. The position sizes are still too small to indicate a clear bias.Stake Decreases:Canadian Pacific Railway (CP): CP is a 1.63% of the US long portfolio position that was established in Q4 2013 at prices between $123 and $157. It had since been kept relatively steady. Last quarter saw a 25% reduction at prices between $144 and $185 and this quarter saw another one-third decrease in the $180 to $209 price-range. The stock currently trades at around $208. Viking Global is harvesting significant short-term gains from this position.H&R Block (HRB): The very small 0.39% HRB stake is a long-term positon that has been in the portfolio since 2010. The original stake was more than doubled in 2011. The position was reduced by ~64% last quarter at prices between $27.40 and $33.50 and another ~50% this quarter at prices between $31 and $33.84. The stock currently trades at $33.37. The buying happened at much lower prices and so Halvorsen is harvesting large long-term gains.Lowe’s Companies (LOW): The LOW position was at 4.80% of the US long portfolio as of last quarter. This quarter saw 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 stock currently trades at $63.64 and the remaining stake is still fairly large at 4.13%.Lyondellbasell Industries (LYB): LYB was a top-five position at 4.59% of the US long portfolio last quarter. It was reduced by over one-third this quarter at prices between $97.65 and $115. The long-term stake has been in the portfolio since 2010. The bulk of the current position was purchased in 2010 and 2011 at much lower prices compared to the current price of $90.56.Monsanto Company (MON): The fairly large 3.15% MON stake was reduced to a minutely small 0.28% position this quarter at prices between $112 and $127. The original position was a very small stake first purchased in Q1 2013 and increased substantially in Q2 2013 at around $100 (4.2M shares). It was increased by ~87% last quarter at prices between $110 and $127. The stock currently trades at $121. The quick about-turn indicates a bearish bias.Netflix Inc. (NFLX): NFLX is a 1.92% of the US long portfolio established last quarter at prices between $314 and $450. It was reduced by ~20% this quarter in the $423 to $485 price-range. The stock currently trades at $356.Regeneron Pharmaceuticals (REGN): REGN is a 1.56% of the US long portfolio position established in Q1 2014 quarter at prices between $267 and $348. It was increased by a whopping 180% last quarter at prices between $277 and $313. This 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 $410.Salix Pharmaceuticals (SLXP): SLXP is a 1.71% of the US long portfolio position established in Q1 2014 at prices between $89 and $115. It was increased by 86% last quarter at prices between $97 and $125. This quarter saw minor selling. The stock currently trades at $103.Thermo Fisher Scientific (TMO): The fairly large 3.90% 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 8M shares. Last quarter saw a ~15% reduction at prices between $113 and $122 and this quarter saw minor additional selling. The stock currently trades at $127.Twenty First Century Fox (FOXA): The 1.39% FOXA stake was established in Q3 2013 at prices between $30 and $33.50. The position was at 5.09% of the portfolio as of Q1 2014. Last quarter, the stake was reduced by almost two-thirds at prices between $32 and $36.21 and that was followed with a ~24% reduction this quarter at prices between $31.30 and $36.30. The stock currently trades at $35.75.Valeant Pharmaceuticals (VRX): VRX is the third-largest position at 5.25% of the US long portfolio. It was increased by 27% last quarter at prices between $117 and $138. This quarter, the stake was sold down by ~16% at prices between $107 and $131. 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 $143. Halvorsen is starting to harvest huge long-term gains from this position.Baidu Inc. (BIDU) & Mondelez International (MDLZ): BIDU and MDLZ are at 1.51% and 1.55% of the US long portfolio respectively. The stakes were both reduced this quarter. The BIDU position was first purchased in Q3 2013 at prices between $91 and $158 while the ~63% reduction this quarter happened at prices between $182 and $229. The bulk of the MDLZ position was purchased in Q1 2014 at prices between $32 and $35.80 and the ~30% reduction this quarter happened at prices between $34.20 and $38.56. BIDU currently trades at $244 and MDLZ at $38.99.Ralph Lauren (RL): RL stake was established last quarter and reduced by ~24% this quarter. The remaining stake is very small at 0.53% of the portfolio.Kept Steady:None.The 13F portfolio also shows the following minutely small (less than 0.5% of the portfolio each) stakes: Acadia Pharmaceuticals (ACAD), Adobe Systems (ADBE), Capital One Financial (COF), Colfax Inc. (CFX), Concho Resources (CXO), Crown Castle (CCI), DR Horton Inc. (DHI), Delta Airlines (DAL), HCA Holdings (HCA), Humana Inc. (HUM), Intercept Pharmaceuticals (ICPT), Marsh & McLennan (MMC), Medtronic (MDT), Molina Healthcare (MOH), Petroleo Brasileiro SA (PBR), State Street Corp. (STT), WellPoint Inc. (WLP), and Kite Pharma. (KITE).The spreadsheet below highlights changes to Halvorsen’s US stock holdings in Q3 2014:"