"Tracking Ole Andreas Halvorsen’s Viking Global Portfolio – Q3 2016 Update"
"Halvorsen's 13F portfolio decreased from $23.54B to $23.18B. The number of positions increased from 55 to 62.Viking Global increased Alphabet Inc. while reducing Broadcom and Teva Pharmaceuticals. Also, several positions in the energy sector saw large increases.The top three positions are Amazon.com, Alphabet Inc., and Facebook 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 11/14/2016. Please visit our  series to get an idea of his investment philosophy and our  for the fund’s moves during Q2 2016.This quarter, Halvorsen’s US long portfolio decreased ~2% from $23.54B to $23.18B. The number of holdings increased from 55 to 62. Largest five individual stock positions are Amazon.com, Alphabet Inc., Facebook Inc., Cabot Oil & Gas, and Encana and they add up to ~39% 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:Amsurg Corporation (AMSG), Apple Inc. (AAPL), AstraZeneca plc (AZN), Bank of America (BAC), BioMarin Pharma. (BMRN), Dentsply Sirona (XRAY), Dover Corp. (DOV), Eaton Corp. (ETN), Emerson Electric (EMR), Home Depot (HD), Incyte Corp. (INCY), Johnson Controls (JCI), Liberty Global (LBTYA)(LBTYK), Lowes Companies (LOW), Lyondellbasell Inds. (LYB), Marriott Intl. (MAR), MetLife Inc. (MET), Pure Storage (PSTG), Salesforce.com (CRM), Tesaro Inc. (TSRO), Universal Health Services (UHS), and Visa Inc. (V): These are small starter positions (less than ~2% of the portfolio each) established this quarter.Stake Disposals:Allergan plc (AGN): AGN was a ~2% stake first purchased in Q2 2013 and more than doubled the next quarter at prices between $97 and $147. Q1 2014 saw a 70% reduction at prices between $177 and $221 generating huge gains. The next six quarters saw a ~600% stake increase at prices between $203 and $317. It was a top stake at 7.5% of the portfolio at the time. Q4 2015 & Q1 2016 had seen a one-third reduction at prices between $266 and $323 and that was followed with another ~60% selling last quarter at prices between $202 and $278. The disposal of the remaining ~2% position this quarter was at prices between $230 and $260. The stock currently trades at $193.Note: Part of the increase last year 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.Newell Brands (NWL): NWL was a ~2% stake purchased in Q1 2016 at prices between $33.50 and $45 and more than doubled last quarter at prices between $43.50 and $49.50. The position was sold this quarter at prices between $48 and $55. The stock is now at $48.17.Pioneer Natural Resources (PXD): PXD was a very small stake ~1% of the US long portfolio position as of last quarter. It was established over the first three quarters of 2014 at prices between $165 and $233. Q4 2015 saw a ~41% further increase at prices between $116 and $149. It was a ~5% portfolio stake at the time. The pattern reversed in Q1 2016: ~73% reduction at prices between $108 and $143 and that was followed with a ~46% selling last quarter at prices between $138 and $169. The disposal this quarter was at prices between $149 and $188. The stock is now at $186. Viking Global realized losses.Aetna Inc. (AET), Aon plc (AON), Cigna Corporation (CI), CTrip.com Intl. (CTRP), DaVita Healthcare (DVA), and Marsh & McLennan (MMC): These are very small (less than ~1% of the portfolio each) stakes that were disposed of this quarter.Cloud Peak Energy (CLD), HCA Holdings (HCA), Hartford Financial Services (HIG), Intercontinental Exchange (ICE), NRG Energy (NRG), Santander Consumer USA (SC), and Tyco International (TYC): These are small starter positions (less than ~1% of the portfolio each) established last quarter but eliminated this quarter. Although the relative sizing is small, Viking had a ~5% ownership stake in Cloud Peak Energy.Stake Increases:Anadarko Petroleum (APC), Cabot Oil & Gas (COG), Calpine Corp. (CPN), Dynegy Inc. (DYN), Encana Corp. (ECA), Gulfport Energy (GPOR), Rice Energy (RICE), and Southwestern Energy (SWN): These energy-related stocks were increased this quarter. Combined, they are at ~17% of the portfolio. COG and ECA are large (top five) ~4% portfolio stakes.Note: Viking Global owns ~6% of Calpine, ~9.5% of Dynegy, and ~7% of Rice Energy.Canadian Pacific Railway (CP): The CP stake saw a huge ~280% increase to a 2.37% portfolio position (3.6M shares) this quarter at prices between $129 and $156. The stock is now at $149.Note: CP has been in the portfolio since Q4 2013. The position size peaked in Q1 2015 at ~6.2M shares. The build-up was at prices between $123 and $215. The next five quarters thru Q2 2016 saw a combined ~85% stake reduction at prices between $104 and $162.Alphabet Inc. (GOOG) (GOOGL): GOOG is the second-largest 13F position at 10.40%. It was established in Q3 2014 at prices between $563 and $596. H1 2015 saw a huge ~425% increase at prices between $493 and $575. Q4 2015 saw an about turn: ~18% reduction at prices between $608 and $777 and that was followed with another ~15% selling last quarter at prices between $668 and $767. This quarter saw the pattern reverse again: ~15% increase at prices between $692 and $787. The stock currently trades at $761.JD.com (JD): JD is a ~3% of the US long portfolio position established in Q1 2016 at prices between $22.50 and $32.50 and increased by almost 50% last quarter at prices between $20 and $30. There was another ~20% increase this quarter at prices between $20 and $27. The stock is now at $25.74. For investors attempting to follow Viking Global, JD is a good option to consider for further research.Mastercard Inc. (MA): MA is a 3.37% 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 $81 and $93 while Q3 2015 saw a one-third decrease at prices between $87 and $98.50. The position was almost sold out in Q4 2015 at prices between $90 and $102. Q1 2016 saw a huge build-up: ~1100% increase at prices between $80.50 and $97.50. Last two quarters have seen another ~300% increase at prices between $87 and $102. The stock currently trades at $105.Constellation Brands (STZ): STZ stake is now at ~2% of the portfolio. The original minutely small position saw an almost ~500% increase this quarter at prices between $161 and $168. The stock currently trades at $155. For investors attempting to follow Halvorsen, STZ is a good option to consider for further research.Microsoft Corporation (MSFT): MSFT is a fairly large 3.40% portfolio stake established last quarter at prices between $48.50 and $56.50 and increased by ~140% this quarter at prices between $51 and $58.50. The stock is now above those ranges at $60.40.Centene Corp. (CNC), GW Pharmaceuticals (GWPH), Jazz Pharmaceuticals (JAZZ), and Sealed Air Corp. (SEE): These are small positions (less than ~1% of the portfolio each) that saw increases this quarter. They are still too small to indicate a clear bias.Stake Decreases:Air Products & Chemicals (APD): APD is a fairly large ~3% of the US long portfolio position. It was first purchased in the three quarters thru Q1 2015 at prices between $119 and $158. There was an about turn in the following quarter: ~25% reduction at prices between $137 and $153. Q1 2016 saw a ~28% stake increase at prices between $116 and $145. The pattern reversed again this quarter: ~31% reduction at prices between $138 and $157. The stock currently trades at $141.Amazon.com Inc. (AMZN): AMZN is the largest position at 10.58% 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 the following quarter saw a one-third increase at prices between $482 and $676. There was a ~15% trimming over the last two quarters at prices between $586 and $772. The stock currently trades at $780. Halvorsen is starting to harvest gains.Broadcom Ltd. (AVGO) previously Avago: AVGO is a fairly large 3.39% 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. There was a one-third stake increase in Q1 2016 primarily due to the acquisition of Broadcom Corporation that closed in January. This quarter saw an about turn: ~55% reduction at prices between $150 and $177. The stock is currently at $177. Viking Global realized gains.Biogen Inc. (BIIB): BIIB saw a roughly 13-times increase last quarter at prices between $225 and $290. A third of that stake was sold this quarter at prices between $242 and $330. The stock currently trades at $306 and the stake is at ~3% of the portfolio.Eli Lilly (LLY): LLY is a ~2% of the portfolio stake established in Q1 2016 at prices between $69 and $84. Last quarter saw a ~20% reduction at prices between $72 and $79 and that was followed with another roughly one-third reduction this quarter at prices between $77 and $83. The stock currently trades at $68.Facebook Inc. (FB): FB is a top-three 10.37% of the portfolio position. It was purchased in Q1 2016 at prices between $94 and $116 and the stock is now at $121. Last quarter saw a marginal increase while this quarter saw a ~7% trimming.Netflix Inc. (NFLX): NFLX is a ~1% 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. Last quarter saw a ~22% reduction at prices between $85 and $112 and that was followed with another ~58% selling this quarter at prices between $85 and $100. The stock currently trades at $118.T-Mobile US (TMUS): The TMUS position saw a 4-times increase last quarter at prices between $38 and $44 and the stake is now at 2.77% of the portfolio. The stock currently trades well above that range at $54.34. There was a marginal reduction this quarter.Teva Pharmaceuticals (TEVA): TEVA is a fairly large position at 3.91% of the portfolio. The stake was established in Q3 2015 at prices between $55 and $72. The following quarter saw a ~180% increase at prices between $56 and $66 and that was followed with a one-third further increase in Q1 2016 at prices between $53.50 and $66. Last quarter saw a ~15% trimming at prices between $48.50 and $57. There was another ~30% selling this quarter at prices between $46 and $56. The stock currently trades at $38.11.Walgreen Boots Alliance (WBA) previously Walgreen Company: WBA stake is now minutely small at 0.41% of the portfolio. It was first purchased in Q4 2013 and substantially increased in Q1 2014 at prices between $54 and $69. The next several quarters saw a ~40% selling at prices between $63 and $88. In Q2 2015, the pattern reversed: ~70% increase at prices between $83 and $93. It was a large ~8% portfolio stake at the time. The last four quarters saw the position almost sold out at prices between $75 and $87. The stock currently trades at $84.05.Alibaba Group Holding (BABA), American International Group (AIG), Eclipse Resources (ECR), Envision Healthcare (EVHC), 58.com (WUBA), Humana Inc. (HUM), Kite Pharmaceuticals (KITE), Range Resources (RRC), and Shire plc (SHPG): These are small (less than ~1.5% of the portfolio each) stakes that saw decreases this quarter.Kept Steady:Editas Medicine (EDIT): EDIT is a minutely small 0.10% portfolio stake kept steady this quarter.Note: Regulatory filings this year show Viking Global owning 37.2M shares (~62% of the business) of Myovant Sciences (MYOV), 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 positions are indirectly held thru Roivant Sciences, whom they acquired last year.The spreadsheet below highlights changes to Halvorsen’s US stock holdings in Q3 2016:"