"Tracking Ole Andreas Halvorsen’s Viking Global Portfolio – Q3 2015 Update"
"Halvorsen's 13F portfolio decreased marginally from $26.47B to $26.09B. The number of positions increased from 56 to 63.Viking Global added Broadcom while increasing Amazon.com and Anthem Inc. during the quarter.The top three positions are Alphabet Inc. (8.82%), Allergan plc (7.50%), and Walgreens Boots Alliance (7.41%).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 11/16/2015. Please visit our  series to get an idea of his investment philosophy and our  for the fund’s moves during Q2 2015.This quarter, Halvorsen’s US long portfolio decreased marginally from $26.47B to $26.09B. The number of holdings increased from 56 to 63. Largest five individual stock positions are Alphabet Inc., Allergan plc, Walgreens Boots Alliance, Amazon.com, and Broadcom Corporation and they add up to just over one-third 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:Broadcom Corporation (BRCM): BRCM is a large (top five) 4.65% of the portfolio stake purchased this quarter at prices between $47.19 and $53.80. The stock is now at $53.33. It is a merger arbitrage stake. Avago Technologies is set to acquire BRCM. Halvorsen also has a fairly large position in Avago.Note: A 11/9/2015 13G filing shows Viking owning 29.7M shares (5.3% of the business). This is compared to 23.6M shares in the 13F.Hilton Worldwide (HLT), Laboratory Corp of America Holdings (LH), Netflix Inc. (NFLX), Starwood Hotels & Resorts (HOT), and Teva Pharmaceuticals (TEVA): These small stakes (less than ~2% of the portfolio each) were established during the quarter.Note 1: Marriott International (MAR) announced the acquisition of Starwood Hotels & Resorts last week in a stock-and-cash deal valued at ~$80 per share.Note 2: A 10/13/2015 13G filing shows Viking owning 5.4M shares (5.3% of the business) of Laboratory Corp of America Holdings. This is compared to 5M shares reported in the 13F.Eaton Corporation (ETN), eBay Inc. (EBAY), Nike Inc. (NKE), and Textron Inc. (TXT): These are very small positions (less than ~1% of the portfolio each) purchased this quarter.Stake Disposals: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. Q1 2015 saw a ~16% reduction at prices between $203 and $233 and that was followed by a ~47% reduction last quarter at prices between $189 and $221. The elimination this quarter happened at prices between $132 and $208. It currently trades at $207. Halvorsen harvested huge gains from this position.Metlife (MET): MET is a 2.49% stake bought in Q1 2015 at prices between $46.50 and $54.09 and increased by ~77% last quarter at prices between $50.25 and $57.70. The position was sold this quarter at prices between $46.07 and $57.70. It trades currently at $50.69.Aon plc (AON), Avis Budget Group (CAR), Biogen Inc. (BIIB), Cigna Inc. (CI), NXP Semiconductors NV (NXPI), Receptos Inc. (RCPT), Twenty First Century Fox (FOXA), and Universal Health Services (UHS): These very small stakes (less than ~1% of the portfolio each) were sold out during the quarter. The position sizes were too small to indicate a clear bias.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. Q1 2015 saw an additional one-third increase at prices between $255 and $317. Last two quarters have also seen minor increases. It is now Halvorsen’s second largest position at 7.50% of the US long portfolio. The stock currently trades at $302.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.Air Products & Chemicals (APD): APD is a medium-sized 2.89% 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. Last quarter the pattern reversed: ~25% reduction at prices between $137 and $153. The stock currently trades at $140. This quarter saw a marginal increase.Note: The business has seen activist involvement: Bill Ackman (Pershing Square) has a huge stake.American International Group (AIG): AIG was a 1.79% stake established in Q1 2015 at prices between $48.87 and $56.42. It was reduced to a minutely small 0.31% position last quarter at prices between $54.79 and $63.32. This quarter, the stake was more than doubled at prices between $55.66 and $64.54. The stock currently trades at $62.76 and the stake is still very small at 0.61% of the portfolio.Amazon.com Inc. (AMZN): AMZN is a large (top five) 3.74% of the US long portfolio stake established last quarter at prices between $370 and $446 and increased by roughly one-third this quarter at prices between $429 and $548. The stock currently trades well outside those ranges at $679.Avago Technologies (AVGO): AVGO is a medium-sized 3.32% of the portfolio stake established last quarter at prices between $117 and $148. It was increased by ~46% this quarter at prices between $109 and $138. The stock currently trades at $124.Note: In May, Avago agreed to acquire Broadcom in a cash-and-stock deal. Viking has built a large position in Broadcom.Bank of New York Mellon (BK): BK is a 1.54% of the US long portfolio position 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. Last quarter saw a further ~24% reduction at prices between $40.21 and $43.95. This quarter, the pattern reversed: ~22% increase at prices between $37.78 and $45.26. The stock currently trades at $43.67.Cheniere Energy (LNG): LNG is a 2.42% 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% the following quarter at prices between $66.61 and $81.40. Last quarter saw a ~27% reduction at prices between $68.49 and $79.78 while this quarter saw a ~15% increase at prices between $48.50 and $70.65. The stock currently trades at $48.44. Halvorsen controls ~5.5% 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.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 last quarter at prices between $87.80 and $106. This quarter also saw a ~26% increase at prices between $77.25 and $104. It currently trades at $94.46 and the stake is now at 4.31%.Pioneer Natural Resources (PXD): PXD is a fairly large 3.11% 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 three quarters have seen only minor adjustments. The stock currently trades at $143.Note: A 13G filing on 10/30/2015 shows Viking Global owning 8.96M shares (6% of the business) of PXD. This is compared to 6.67M shares in the 13F.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% the following quarter at prices between $143 and $205. Last two quarters have seen minor increases. The stock currently trades at $87.34 and the stake is at 3.41%. 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.Aetna Inc. (AET), Anthem Inc. (ANTM), and Humana Inc. (HUM): These three positions were increased this quarter and combined are at ~7.5% of the portfolio. There is very heavy recent M&A activity in the sector and all three names are involved: Aetna is set to acquire Humana and Anthem agreed to acquire Cigna in deals announced in July.Allstate Corp. (ALL), Citigroup Inc. (C), Kite Pharmaceuticals (KITE), McKesson Corp. (MCK), Qunar Cayman (QUNR), and Transdigm Group (TDG): These small positions (less than ~1.5% of the portfolio each) were increased during the quarter. The positions sizes are still too small to indicate a clear bias. Viking Global controls ~3.6% of Qunar Cayman.Note: A 13G regulatory filing on 10/5/2015 shows Viking Global owning 2.69M shares (6.1% of the business) of Kite Pharmaceuticals. This is compared to 2.47M shares in the 13F.Stake Decreases:Alibaba Group Holding (BABA): BABA is a very small 0.56% stake. It was established in Q3 2014 at prices between $87 and $94 and reduced by just over two-thirds the following quarter at prices between $85 and $119. Q1 2015 saw an about-turn as the stake was increased by ~87% at prices between $81.58 and $105. Last quarter had seen a ~13% trimming. This quarter saw a ~59% further reduction at prices between $57.39 and $84.19. The stock currently trades at $81.31.Canadian Pacific Railway (CP): CP is a 2.29% 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. Q1 2015 saw another ~53% increase at prices between $175 and $194. Last quarter had seen a ~15% trimming and that pattern continued this quarter with a ~21% reduction at prices between $134 and $162. The stock currently trades at $147.Crown Castle International (CCI): CCI is a 1.36% of the US long portfolio position established in Q4 2014 at prices between $75.11 and $84.75. The stake saw a ~22% increase last quarter at prices between $81.55 and $86.64. This quarter saw a ~19% reduction at prices between $76.58 and $86.34. The stock currently trades at $87.40.CTrip.com Intl. (CTRP): CTRP is a 1.19% of the US long portfolio stake. The position saw a ~37% increase last quarter at prices between $58.62 and $84.63. This quarter saw a ~15% trimming. The stock currently trades at $111. Halvorsen controls ~14% of the business.Envision Healthcare (EVHC): EVHC is a 1.39% of the portfolio position established in Q1 2015 at prices between $33.91 and $38.69 and increased by ~80% last quarter at prices between $35.79 and $40.11. This quarter saw a ~20% reduction at prices between $35.99 and $45.27. The stock currently trades at $27.31. Halvorsen controls ~5.3% of the business.Alphabet Inc. (GOOG) (GOOGL) previously Google: GOOG is the largest 13F position at 8.82%. 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 last quarter at prices between $524 and $565. The stock currently trades at $756. This quarter saw minor selling.Illumina Inc. (ILMN): ILMN was Viking Global’s second-largest individual stock position at 6.12% of the US long portfolio as of Q1 2015. It was reduced by ~42% last quarter at prices between $182 and $221 and another ~64% this quarter at prices between $168 and $240. The bulk of the original stake was purchased in Q1 2014 at prices between $109 and $180. The stock currently trades at $175. The stake is now relatively small at 1.21% of the portfolio.Mallinckrodt Ltd. (MNK): MNK is a 0.96% position established in Q1 2015 at prices between $94 and $133 and increased by ~53% last quarter at prices between $113 and $130. This quarter saw a ~28% reduction at prices between $58 and $127. The stock currently trades at $66.08. Viking Global controls ~3.3% of MNK.Mastercard Inc. (MA): MA is a 1.87% 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. Q1 2015 saw a 92% increase at prices between $80.74 and $92.81. This quarter, the position was sold down by around one-third at prices between $86.82 and $98.41. 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 $99.38.Mohawk Industries (MHK): MHK is a 1.38% of the US long portfolio stake. The position was established in Q1 2014 at prices between $133 and $150. The stake was doubled over the following two quarters at prices between $125 and $148. In Q4 2014 the pattern reversed as there was a 30% reduction at prices between $125 and $158. This quarter saw a ~54% further reduction at prices between $176 and $211. The stock currently trades at $194. Viking Global is harvesting gains from this position.Sealed Air Corp. (SEE): SEE is a 1.54% of the US long portfolio stake. The original position was increased by ~350% in Q1 2015 at prices between $39.42 and $48.30. This quarter saw a one-third reduction at prices between $45.78 and $55.40. The stock currently trades at $44.88. Viking Global controls ~4.3% of the business.Walgreen Boots Alliance (WBA) previously Walgreen Company: The 7.41% WBA stake is Viking’s third-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. Q1 2015 saw a ~23% decrease at prices between $73.75 and $88.23. Last quarter the pattern reversed: ~69% increase at prices between $82.93 and $92.62. The stock currently trades at $81.91. This quarter saw a minor reduction.Ameriprise Financial (AMP), Davita Healthcare (DVA), Kansas City Southern (KSU), Legg Mason Inc. (LM), Vertex Pharmaceuticals (VRTX), and Whiting Petroleum (WLL): These very small stakes (less than ~1% of the portfolio each) were reduced further this quarter.Kept Steady:None.The 13F portfolio also has the following minutely small (less than 0.5% of the portfolio each) stakes: Advance Auto Parts (AAP), Bluebird Bio (BLUE), Boston Scientific (BSX), Chesapeake Energy (CHK), Clovis Oncology (CLVS), Agilent Technologies (A), Deere & Co. (DE), Dentsply Intl. (XRAY), Energy Transfer Equity (ETE), 58.com (WUBA), JD.com (JD), Tripadvisor Inc. (TRIP), Ace Ltd. (ACE), ProQR Therapeutics NV (PRQR), and Amgen Inc. (AMGN).The spreadsheet below highlights changes to Halvorsen’s US stock holdings in Q3 2015:"