"Tracking Ole Andreas Halvorsen’s Viking Global Portfolio – Q2 2016 Update"
"Halvorsen's 13F portfolio increased from $22.72B to $23.54B. The number of positions decreased from 62 to 55.Viking Global increased Biogen, DaVita, MasterCard, and Newell Brands while reducing Allergan, Aetna, and Walgreens Boots Alliance.The top three positions are Amazon.com, Facebook Inc., and Alphabet Inc.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 08/15/2016. Please visit our  series to get an idea of his investment philosophy and our  for the fund’s moves during Q1 2016.This quarter, Halvorsen’s US long portfolio increased 3.63% from $22.72B to $23.54B. The number of holdings decreased from 62 to 55. Largest five individual stock positions are Amazon.com, Facebook Inc., Alphabet Inc., Broadcom Ltd., and Teva Pharmaceuticals and they add up to 40.25% 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:American International Group (AIG), Centene Corp. (CNC), Cloud Peak Energy (CLD), GW Pharmaceuticals (GWPH), HCA Holdings (HCA), Hartford Financial Services (HIG), Intercontinental Exchange (ICE), Jazz Pharmaceuticals (JAZZ), Microsoft Corporation (MSFT), NRG Energy (NRG), Rice Energy (RICE), Santander Consumer USA (SC), and Tyco International (TYC): These are small starter positions (less than ~1% of the portfolio each) established this quarter. Although the relative sizing is small, Viking owns significant ownership stakes in the following businesses: ~4.8% of Cloud Peak Energy and ~8% of Rice Energy.Stake Disposals:Anthem Inc. (ANTM): The 2.97% of the 13F portfolio ANTM stake was first purchased in Q2 2015 at the high-150s price-range. The following quarters saw consistent buying at lower prices with the share count increasing from 1.9M to 6.7M shares. The pattern reversed last quarter: ~28% reduction at prices between $117 and $144. The disposal this quarter was at prices between $125 and $148. The stock is now at $130.Cheniere Energy (LNG): LNG was a 2.24% of the US long portfolio position as of Q4 2015. It was almost eliminated last quarter at prices between $23.65 and $38.47 and the remaining minor stake was disposed of this quarter. The original position was from 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% the following quarter at prices between $66.61 and $81.40. Q2 2015 saw a ~27% reduction at prices between $68.49 and $79.78 while the following quarter saw a ~15% increase at prices between $48.50 and $70.65. Q4 2015 saw another ~22% increase at prices between $35.87 and $54.02. The stock currently trades at $45. Viking realized losses from this position.Lyondellbasell Industries (LYB): LYB is a long-term stake first purchased in 2010. The original position was reduced by over one-third in Q3 2014 at prices between $97.65 and $115 and another 43% the following quarter at prices between $70.61 and $109. Q1 2015 saw an about-turn: ~90% increase at prices between $74.36 and $91.55. There was a further 39% increase the following quarter at prices between $87.80 and $106. Q3 2015 also saw a ~26% increase at prices between $77.25 and $104. The pattern reversed in Q4 2015: ~31% reduction at prices between $83 and $98. The position was almost eliminated last quarter at prices between $72.34 and $88.60 and the remaining stake was disposed this quarter. It currently trades at $79.87.Biomarin Pharmaceuticals (BMRN), Dexcom Inc. (DXCM), Hilton Worldwide (HLT), Home Depot (HD), Jarden Corp. (JAH), Medivation Inc. (MDVN), Metlife Inc. (MET), Progressive Corp. (PGR), and United Health Services (UHS): These are very small (less than ~0.5% of the portfolio each) stakes established last quarter but eliminated this quarter.Chubb Ltd. (CB), Akorn Inc. (AKRX), and Prudential Financial (PRU): These are small (less than ~1% of the portfolio each) positions that were increased last quarter but disposed of this quarter. The position sizes were too small to indicate a clear bias.Crown Castle International (CCI), Endo International plc (ENDP), Kansas City Southern (KSU), Laboratory Corp of America Holdings (LH), Pfizer Inc. (PFE), and Transdigm Group (TDG): These small stakes (less than ~1% of the portfolio each) were reduced last quarter and eliminated this quarter.Stake Increases:Air Products & Chemicals (APD): APD is a fairly large 4.19% 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. Q1 2015 saw a further ~46% increase at prices between $139 and $158. In Q2 2015, the pattern reversed: ~25% reduction at prices between $137 and $153. Q4 2015 saw a ~9% further selling. There was a ~28% stake increase last quarter at prices between $116 and $145 and that was followed with a marginal increase this quarter. The stock currently trades at $156.Broadcom Ltd. (AVGO) previously Avago Technologies: AVGO is a top-five 6.75% of the portfolio stake established in Q2 2015 at prices between $117 and $148. It was increased by ~46% in Q3 2015 at prices between $109 and $138. The one-third stake increase last quarter was primarily due to the acquisition of Broadcom Corporation that closed in January. The stock is currently at $175. This quarter saw a minor increase.Facebook Inc. (FB): FB is a top-three 9.78% of the portfolio position. It was purchased last quarter at prices between $94 and $116 and the stock is now at $124. This quarter saw a marginal increase.JD.com (JD): JD is a 2.03% of the US long portfolio position established last quarter at prices between $22.88 and $32.27 and increased by almost 50% this quarter at prices between $20 and $30. The stock is now at $25.91.Mastercard Inc. (MA): MA is a 2.41% of the US long portfolio position. The original stake was purchased in Q4 2011 at prices between $31 and $38 and the stake has wavered since. Recent activity follow: Q1 2015 saw a 92% increase at prices between $80.74 and $92.81 while Q3 2015 saw a one-third decrease at prices between $86.82 and $98.41. The position was almost sold out in Q4 2015 at prices between $90 and $102. Last quarter saw the pattern reverse again: huge ~1100% increase at prices between $80.65 and $97.36. This quarter saw another ~180% increase at prices between $87 and $98. The stock currently trades at $95.22.Newell Brands (NWL) formerly Newell Rubbermaid: NWL is a 2.05% stake purchased last quarter at prices between $33.76 and $44.95 and more than doubled this quarter at prices between $43.42 and $49.46. The stock is currently at $53.80.Biogen Inc. (BIIB) and T-Mobile US (TMUS): These two stakes had large increases this quarter and they have become fairly large positions. BIIB saw a roughly 13-times increase at prices between $225 and $290 and the stake is now at 3.3% of the portfolio. The stock currently trades well above that range at $317. The TMUS position saw a 4-times increase at prices between $38.30 and $43.91 and the stake is now at 2.57% of the portfolio. The stock currently trades above that range at $46.27.Alibaba Group Holding (BABA), Anadarko Petroleum (APC), Aon plc (AON), Calpine Corp. (CPN), Cigna Corporation (CI), DaVita Healthcare (DVA), Dynegy Inc. (DYN), Eclipse Resources (ECR), Envision Healthcare (EVHC), 58.com (WUBA), Kite Pharmaceuticals (KITE), Marsh & McLennan (MMC), Range Resources (RRC), Shire plc (SHPG), and Sealed Air Corp. (SEE): These are small (less than ~2% of the portfolio each) stakes that saw increases this quarter.Note: Viking owns ~5.4% of Calpine, ~8% of Dynegy, and ~5% of Kite Pharmaceuticals. There was a slight increase in Calpine after the quarter ended.Stake Decreases: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. Q1 2015 saw an additional one-third increase at prices between $255 and $317. Last two quarters had seen a one-third reduction at prices between $266 and $323. There was another ~60% selling this quarter at prices between $202 and $278. The stock currently trades at $253 and the position is now at 1.90% of the portfolio.Note: Part of the increase in Q1 2015 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.Amazon.com Inc. (AMZN): AMZN is the largest position at 9.97% of the US long portfolio. 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. Q4 2015 saw a ~15% reduction at prices between $512 and $694 while last quarter saw a one-third increase at prices between $482 and $676. There was a minor ~5% selling this quarter. The stock currently trades at $757. Halvorsen is starting to harvest huge gains.Canadian Pacific Railway (CP): CP is a 0.54% of the US long portfolio position that was established in Q4 2013 at prices between $123 and $157. Q2 & Q3 2014 saw a combined ~60% reduction at prices between $144 and $209. In Q4 2014, the pattern reversed as there was a stake doubling at prices between $175 and $215. Q1 2015 saw another ~53% increase at prices between $175 and $194. Q2 & Q3 2015 saw the pattern reverse again: ~40% reduction at prices between $134 and $162. Last quarter saw another ~43% reduction at prices between $104 and $135 and that was followed with a ~60% selling this quarter at prices between $121 and $150. The stock currently trades at $152.Eli Lilly (LLY): LLY is a medium-sized 3.14% of the portfolio stake established last quarter at prices between $69 and $84. This quarter saw a ~20% reduction at prices between $72.01 and $78.75. The stock currently trades at $79.06.Alphabet Inc. (GOOG) (GOOGL) previously Google: GOOG is the third-largest 13F position at 7.84%. It was established in Q3 2014 at prices between $563 and $596. Q1 2015 saw a huge 234% increase at prices between $493 and $575 and that was followed with another 57% increase the following quarter at prices between $524 and $565. Q4 2015 saw a ~18% reduction at prices between $608 and $777 and that was followed with another ~15% selling this quarter at prices between $668 and $767. The stock currently trades at $775. Halvorsen is harvesting gains.Netflix Inc. (NFLX): NFLX is a 2.44% of the 13F portfolio stake established in Q3 2015 at prices between $93 and $126. It was increased by ~74% in Q4 2015 at prices between $97 and $131. This quarter saw a ~22% reduction at prices between $85 and $112. The stock currently trades at $95.87.Pioneer Natural Resources (PXD): PXD is now a very small stake at 0.88% of the US long portfolio. It was established in Q1 2014 at prices between $165 and $205 and was increased by almost 150% the following quarter at prices between $181 and $233. Another two-thirds increase happened in Q3 2014 in the $195 to $232 price-range. Q4 2015 saw a ~41% further increase at prices between $116 and $149. The pattern reversed last quarter: ~73% reduction at prices between $108 and $143 and that was followed with a ~46% selling this quarter at prices between $138 and $169. The stock is now at $186. Viking Global realized losses.Teva Pharmaceuticals (TEVA): TEVA is a top-five position at 5.92% of the portfolio. The stake was established in Q3 2015 at prices between $55 and $72. The following quarter saw a ~182% increase at prices between $56 and $66 and that was followed with a one-third further increase last quarter at prices between $53.50 and $65.86. This quarter saw a ~15% trimming at prices between $48.52 and $57.25. The stock currently trades at $52.99. For investors attempting to follow Viking Global, TEVA is a good option to consider for further research.Walgreen Boots Alliance (WBA) previously Walgreen Company: The 1.23% WBA stake 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. Q1 2015 saw a ~23% decrease at prices between $73.75 and $88.23. In Q2 2015, the pattern reversed: ~69% increase at prices between $82.93 and $92.62. Q4 2015 saw a ~45% reduction at prices between $79 and $95 and that was followed with another ~51% reduction last quarter at prices between $72.91 and $85.16. There was another ~45% selling this quarter at prices between $76.21 and $86.70. The stock currently trades at $82.59.Cabot Oil & Gas (COG) and Gulfport Energy (GPOR): These two energy-related stocks had large increases last quarter but were reduced this quarter: COG had a ~3% trimming while the GPOR stake was reduced by ~20%. The COG & GPOR stakes are now at 3.86% and 1.19% of the portfolio respectively.Aetna Inc. (AET), Constellation Brands (STZ), Editas Medicine (EDIT), and Humana Inc. (HUM): These are very small (less than ~0.5% of the portfolio each) stakes that saw further reductions this quarter.Kept Steady:Encana Corp. (ECA) and Southwestern Energy (SWN): These two energy-related stocks saw huge increases last quarter but were kept steady this quarter. ECA & SWN positions are currently at 2.67% & 2.01% of the portfolio respectively.CTrip.com Intl. (CTRP): CTRP is a small ~1% of the portfolio stake kept steady this quarter.Note: Regulatory filings earlier this month show Viking Global owning 16M shares (29.3% of the business) of Arbutus Biopharma Corp (ABUS) and 75M shares (75.6% of the business) of Axovant Sciences Ltd (AXON).The spreadsheet below highlights changes to Halvorsen’s US stock holdings in Q2 2016:13G/D/A & Form 3/4 Filing thru 5/21/2016: DYN -5/13/2016 13G - 6.34M shares - 5.4%. RICE - 4/25/2016 13G - 10.13M shares - 6.5%. FDC - 4/15/2016 - Form 4 - not sure. KITE - 2/29/2016 - 13G - 2.44M shares - 5%.13G/D/A & Form 3/4 Filing thru 2/21/2016: CTRP - 2/16/2016 13G/A - 470.89K - 0.8%. FDC - 2/16/2016 13G - 21.75M shares - 10.8%. QUNR - 2/16/2016 13G/A - 25.57M shares - 6.7%. BRCM - 2/16/2016 13G/A - 33.75M shares - 6%. PXD - 2/16/2016 13G/A - 9.37M shares - 5.8%. LH - 2/16/2016 13G/A - 3.2M shares - 3.2%. KITE - 2/16/2016 13G/A - 2.21M shares - 4.6%. WLL - 2/16/2016 13G/A - 0. ESPR - 2/16/2016 13G/A - 0. EVHC - 2/16/2016 13G/A - 7.81M shares - 4.2%. SEE - 2/16/2016 13G/A - 0. KSU - 2/16/2016 13G/A - 375K shares - 0.3%. LNG - 2/16/2016 13G/A - 15.92M shares - 6.7%. ILMN - 2/16/2016 13G/A - 0. MHK - 2/16/2016 13G/A - 0. EDIT - 2/9/2016 4/A & 13G - 2.73M shares - 7.5%. ECA - 2/1/2016 13G - 54.82M shares - 6.5%. GPOR - 1/29/2016 13G - 7.9M shares - 7.3%. RRC - 1/25/2016 13G - 11.59M shares - 6.8%. SWN - 1/21/2016 13G - 35.5M shares - 9.2%. COG - 1/21/2016 13G - 30.85M shares - 7.5%."