"Tracking Ole Andreas Halvorsen’s Viking Global Portfolio – Q4 2017 Update"
"Halvorsen's 13F portfolio value increased from $15.44B to $16.26B. The number of positions remained steady at 59.Viking Global increased Anthem, Parsley Energy, & Domino’s Pizza while reducing Alphabet Inc. & Visa.The top three positions are Encana, Alphabet, and Visa.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 02/14/2018. Please visit our  series to get an idea of his investment philosophy and our  for the fund’s moves during Q3 2017.This quarter, Halvorsen’s US long portfolio value increased ~5% from $15.44B to $16.26B. The number of holdings remained steady at 59. Largest five individual stock positions are Encana Corp, Alphabet Inc., Visa Inc., United Technologies, and Microsoft Corporation and they ~29% of the entire 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 .New Stakes:Time Warner Inc. (TWX) and Netease Inc. (NTES): These are medium-sized new positions established this quarter. TWX is a 2.58% portfolio stake purchased at prices between $87 and $104 and the stock currently trades at $94.80. The ~2% NTES position was established at prices between $264 and $371 and it is now at $307.Note: TWX is a merger-arbitrage stake. In October 2016, AT&T (T) agreed to buy Time Warner for $107.50 per share (half cash).Transdigm Group (TDG) and Thermo Fisher Scientific (TMO): These are small (~1% of the portfolio each) new stakes this quarter. The TDG position was established at prices between $256 and $285 and the stock is now above that range at $293. TMO is a 0.95% stake purchased at prices between $182 and $200 and the stock is currently above that at $210.Note: Transdigm Group is back in the portfolio after a quarter’s gap.Alliance Data Systems (ADS), Diamondback Energy (FANG), Jianpu Technology (JT), Lowes Companies (LOW), Marsh & McLennan (MMC), Paccar Inc. (PCAR), Pioneer Natural Resources (PXD), Progressive Corp (PGR), Qualcomm Inc. (QCOM), Qudian Inc. (QD), RSP Permian Inc. (RSPP), Syneos Health (SYNH) previously INC Research, Travelers Companies (TRV), and Union Pacific (UNP): These are minutely small stakes established this quarter.Note 1: Regulatory filings since the quarter ended show them owning 6.5M shares (9.5% of business) of Jianpu Technology. This is compared to 2.6M shares in the 13F report.Note 2: Lowes Companies and Marsh & McLennan are back in the portfolio after a quarter’s gap.Stake Disposals:MasterCard Inc. (MA): MA was a minutely small stake as of Q2 2017. Last quarter saw a ~9x increase to a ~2% portfolio stake at prices between $121 and $143. The disposal this quarter was at prices between $141 and $154. The stock currently trades at ~$172.Deere & Co. (DE): DE was ~2.5% portfolio stake as of last quarter. A large position was established in Q4 2016 at prices between $85 and $104 and increased by ~55% the following quarter at prices between $103 and $111. The last two quarters had seen a combined ~80% reduction at prices between $108 and $132. The elimination this quarter was at prices between $126 and $159. It now goes for $162. Viking Global realized gains.Rice Energy (RICE): The 1.36% RICE stake was first purchased in Q2 2016 at prices between $13.50 and $22. The position had wavered since. Q1 2017 saw a ~55% increase at prices between $18.50 and $24 while the following quarter saw a one-third reduction at prices between $19 and $27. There was another ~40% selling last quarter at prices between $25 and $29. EQT Corporation acquired Rice Energy ($5.30 cash and 0.37 EQT shares for each share held) and that transaction closed last November.Twenty First Century Fox (FOXA): The 1.75% FOXA position was purchased in Q4 2016 at prices between $24 and $29 and increased by roughly two-thirds the following quarter at prices between $28.50 and $32.50. There was a ~55% reduction last quarter at prices between $25.50 and $30 and the disposal this quarter was at prices between $25 and $35. The stock currently trades at $37.06.JD.com (JD): JD was a very small ~0.90% of the 13F portfolio position as of last quarter. The original large position (~38M shares) was established in 2016 at prices between $20 and $32.50. Last three quarters had seen a ~90% selling at prices between $25 and $48. The elimination this quarter was at prices between $36.75 and $43. The stock is currently at $47.16. Viking Global harvested huge gains.Cabot Oil & Gas (COG): The original position (~36M shares) in COG was purchased in Q4 2015 & Q1 2016 at prices between $15.50 and $23.50. Last four quarters had seen a combined ~90% selling at prices between $20 and $27. The very small 0.70% remainder stake was disposed this quarter at prices between $24.50 and $29.50. The stock is now at $23.25.Albemarle Corp (ALB), Anadarko Petroleum (APC), Bank of America (BAC), Chubb Ltd (CB), D R Horton Inc. (DHI), Fleetcor Tech. (FLT), Johnson Controls (JCI), Newell Brands (NWL), Parken Hannifin (PH), Shire plc (SHPG), Spark Therapeutics (ONCE), Verizon Communications (VZ), and Walgreen Boots Alliance (WBA): These very small (less than ~1.25% of the portfolio each) positions were disposed this quarter.Stake Increases:United Technologies (UTX): The fairly large 4.68% UTX position was purchased last quarter at prices between $110 and $124 and increased by ~43% this quarter at prices between $116 and $128. It is now at $129.Note: United Technologies has had a previous round-trip in the portfolio. A small 0.73% stake was disposed in Q2 2017.Broadcom Ltd. (AVGO) previously Avago: AVGO is a 3.90% of the portfolio stake established in Q2 & Q3 2015 at prices between $109 and $148. Q3 2016 saw an about turn: ~55% reduction at prices between $150 and $177. Q1 2017 saw a ~20% selling at prices between $174 and $227 and that was followed with another one-third reduction last quarter at prices between $230 and $257. The stock currently trades at $249. There was a ~14% increase this quarter.Amazon.com Inc. (AMZN): AMZN is a 3.73% 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 follow: Last four quarters had seen a combined ~85% selling at prices between $739 and $1026 while this quarter saw a ~30% increase at prices between $957 and $1196. The stock currently trades at $1483.Anthem Inc. (ANTM) and Raymond James (RJF): These two positions were established in Q2 2017 and built over the last two quarters. The 3.51% ANTM stake was first purchased at prices between $165 and $193 and increased by ~9x over the last two quarters at prices between $181 and $235. The stock is now at $232. The 2.61% RJF position was first purchased at prices between $71.50 and $77 and increased by ~5x over the last two quarters at prices between $75 and $91. The stock currently trades at $91.22.Autodesk Inc. (ADSK), Domino’s Pizza (DPZ), and Parsley Energy (PE): These three positions established last quarter saw substantial increases this quarter. ADSK is a 2.64% portfolio stake established at prices between $99 and $117 and increased by two-thirds this quarter at prices between $104 and $130. The stock currently trades at $112. The 2.39% DPZ position saw a ~500% increase this quarter at prices between $169 and $209 and the stock is now well above that range at $231. The 3.28% PE position was established last quarter at prices between $24 and $30 and increased by ~130% this quarter at around the same price range. It is now just below that range at $23.10.Note: Viking Global has a 7.3% ownership stake in Parsley Energy.Liberty Media Formula One (FWONK): FWONK is a 2.52% position purchased in Q2 2017 at prices between $27.50 and $35. It is now at $34.58. The position saw a marginal increase this quarter.Dentsply Sirona (XRAY): The 2.18% XRAY stake was built over the last three quarters at prices between $53 and $69. The stock currently trades at $58.06.Wells Fargo (WFC): WFC was a large 4.6% of the portfolio stake established in Q2 2017 at prices between $51 and $56 and sold down by ~85% last quarter to a very small 0.70% portfolio stake at prices between $49.50 and $56. This quarter saw a reversal: ~180% increase to a ~2% portfolio stake at prices between $53 and $62. The stock is now at $59.73.Anheuser Busch Inbev (BUD) and Equifax Inc. (EFX): These small (less than 2% of the portfolio each) positions first purchased last quarter saw substantial increases this quarter. The BUD position was first purchased at prices between $110 and $123 and increased by ~80% this quarter at prices between $110 and $126. The stock is now at $105. The 1.69% EFX stake saw a ~350% increase this quarter at prices between $106 and $120 and it is currently at $114.Abeona Therapeutics (ABEO), HDFC Bank (HDB), and Lincoln National (LNC): These are very small (less than 1% of the portfolio each) stakes that saw increases this quarter.Note 1: Viking Global controls 8.6% of Abeona Therapeutics.Note 2: Lincoln National has seen a previous roundtrip. A minutely small 0.19% portfolio stake was disposed in Q2 2017.Stake Decreases:Alphabet Inc. (GOOG) (GOOGL): GOOG is now the second-largest 13F position at 6.43% of the portfolio. It 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: There was a ~75% reduction in Q2 2017 at prices between $823 and $984 and that was followed with a ~115% increase last quarter at prices between $899 and $980. This quarter saw a one-third reduction at prices between $952 and $1077. The stock is now at $1111.Visa Inc. (V): The large (top three) 5.34% V stake was purchased in H2 2016 at prices between $74 and $83. Q1 2017 had seen a ~12% trimming at prices between $80 and $90. There was a ~85% increase in the following quarter at prices between $89 and $97 and that was followed with another ~30% increase last quarter at prices between $93 and $106. This quarter saw a reversal: ~25% selling at prices between $105 and $114. The stock is now at $120.Microsoft Corporation (MSFT): MSFT is a large (top five) 4.66% 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 last quarter at prices between $68 and $75.50. The stock is now at $91.49. There was a ~12% trimming this quarter. Viking Global is harvesting gains.Netflix Inc. (NFLX): NFLX is a 4.40% of the 13F portfolio stake. It was established in H2 2015 at prices between $93 and $131. Q2 & Q3 2016 saw a two-thirds reduction at prices between $85 and $112 while the following quarter saw a ~150% increase at prices between $98.50 and $128. That trading pattern continued over the last two quarters: ~72% reduction in Q2 2017 at prices between $140 and $166 followed with a ~135% increase last quarter at prices between $146 and $189. The stock is now at $281. There was a ~5% trimming this quarter.Facebook Inc. (FB): FB is a fairly large ~4% of the 13F 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 last quarter at prices between $148 and $174. The stock is now at ~$178. There was a ~12% trimming this quarter. Viking Global is harvesting gains.Toronto Dominion (TD): TD is a 3.21% portfolio stake established last quarter at prices between $50 and $56.60. The stock currently trades just above that range at $57.77. There was a ~8% trimming this quarter.Lennar Corporation (LEN): LEN is a ~3% position purchased in Q1 2017 at prices between $43 and $53 and increased by ~80% last quarter at prices between $50 and $55. There was a ~20% reduction this quarter at prices between $53 and $64. The stock is now at $58.66.Canadian Pacific Railway (CP): CP is a frequently traded stock that has been in the portfolio since Q4 2013. Recent activity follow: ~90% increase last quarter at prices between $151 and $169 followed with a ~30% reduction this quarter at prices between $165 and $185. The stock is now at $184 and the stake is at 2.72% of the portfolio.United Health (UNH): UNH is a ~2% 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. Last three quarters have seen a ~58% selling at prices between $164 and $228. The stock is now at $225.Salesforce.com (CRM): CRM is a 1.44% 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 last quarter at prices between $86 and $98 and that was followed with a ~35% reduction this quarter at prices between $93.50 and $109. The stock currently trades at $114.Align Technology (ALGN), aTyr Pharma (LIFE), AveXis Inc. (AVXS), Calithera Biosciences (CALA), Deciphera Pharmaceuticals (DCPH), EQT Corp (EQT), GW Pharmaceuticals (GWPH), Jazz Pharmaceuticals (JAZZ), Mohawk Industries (MHK), Molina Healthcare (MOH), NuVasive Inc. (NUVA), Universal Health Services (UHS), : These are very small (less than 1% of the portfolio each) positions reduced this quarter.Note 1: Viking Global controls 5.6% of Abeona Therapeutics, 4.6% of Calithera Biosciences, 7.3% of Deciphera Pharmaceuticals, and 7.3% of Parsley Energy.Note 2: Regulatory filings since the quarter ended show Viking Global owning 2.98M shares (9.5% of the business) of aTyr Pharma. This is compared to 1.38M shares in the 13F report.Kept Steady:Encana Corp. (ECA): ECA is now the largest 13F position at 7.65% of the portfolio. The vast majority of the stake was purchased in Q1 2016 at prices between $3 and $6. Q1 2017 saw a ~11% trimming at prices between $10 and $14 and that was followed with another ~8% trimming in the following quarter at prices between $8 and $12. Last quarter saw the pattern reverse: ~30% stake increase at prices between $8.40 and $11.80. The stock is now at $10.59.Note: Viking Global owns ~9.6% of Encana.Editas Medicine (EDIT): EDIT is a minutely small 0.32% portfolio stake kept steady this quarter. Viking Global owns 4.7% of Editas.Note: Regulatory filings show Viking Global owning 37.2M shares (~61% of the business) of Myovant Sciences (MYOV), 16M shares (~29% of the business) of Arbutus Biopharma Corp (ABUS) and 75M shares (~70% of the business) of Axovant Sciences Ltd (AXON). The three positions are indirectly held thru Roivant Sciences, whom they acquired in 2015.The spreadsheet below highlights changes to Halvorsen’s US stock holdings in Q4 2017:Regulatory Filings thru 11/19/2017: 13G – 10/26 – Parsley Energy – 17.8M shares – 7.2% of business. 13D/A, Form 4 – 10/17 – Arbutus Biopharma – 16M shares – 29.1% of business, 500K shares in $100 converts @ 7.19 purchased. 13G – 10/11 – Deciphera Pharma – 2.5M shares – 8.1% of business. 13G – 10/2 – Abeona Therapeutics – 2.24M shares – 5.6% of business. 13G – 9/11 – aTYR Pharma – 2.9M shares – 9.5% of business."