In this article, we will be discussing the 10 best stocks to buy now according to billionaire Andreas Halvorsen. To skip our detailed analysis of Halvorsen’s history, his investment strategy and hedge fund performance, skip and go directly to 5 Best Stocks to Buy Now According to Billionaire Andreas Halvorsen.
Ole Andreas Halvorsen is a Norwegian-born hedge fund manager who currently serves as the founder and Chief Executive Officer of Viking Global Investors, which is based in Greenwich, Connecticut. Graduating in 1990 with an MBA degree from Stanford, Halvorsen currently ranks at #351 on Bloomberg Billionaires Index with an estimated net worth of $6.43 billion. A protégé of hedge fund manager Julian Robertson, Halvorsen belongs to an elite group of investors known as the “Tiger Cubs”, former mentees of Julian Robertson’s Tiger Management Corporation, who now run hedge fund firms of their own.
Andreas Halvorsen has a unique investment strategy. He is convinced that in order to trade effectively and profitably, it is essential that there is a well-thought out analysis, coupled with a disciplined valuation over time. This has led him to carve up an investment portfolio which is made up of investments in the long and short run. Furthermore, he has also been known to divert his primary focus on long-term investments in public and private corporations, and uses “thoughtful risk-taking” to generate maximum returns.
According to Bloomberg, Halvorsen’s Viking Global has finalized plans to raise a structured equity fund and now seeks to provide capital to “cash-hungry” startups, a move which is expected to aid private companies delay raising money at lower valuations in volatile and unstable public markets. Structured equity usually includes convertible debt, senior equity, or debt plus warrants and hence, fundamentally differs from traditional growth equity, which embodies common equity, and helps companies raise capital without cementing a new valuation. The investment firm aims to raise approximately $1 billion for the fund, which is to be directed in financing both, public and private enterprises. In this effort, Viking Global stands with some of the best hedge fund firms in the world, including Coatue Management and JPMorgan Chase & Co.
As of Q1 2022, Halvorsen’s 13F portfolio is heavily concentrated with large investments in the healthcare, finance, services, and technology sectors. Their current portfolio is valued at over $24.7 billion, a result of a 0.71% increase with respect to the preceding quarter. Halvorsen’s Viking Global has not posted any significant returns so far in Q1 2022, with the hedge fund firm marking a 9% decline in the quarter. Andreas Halvorsen has purchased stakes in 16 new stocks in the first quarter of 2022, strengthening his hold over 31 securities. Some of the most prominent stocks in Halvorsen’s Q1 2022 portfolio include Mastercard Inc. (NYSE:MA), Uber Technologies (NYSE:UBER), and Meta Platforms (NASDAQ:FB). In this article however, we shall be going over the 10 best stocks to buy now according to billionaire Andreas Halvorsen.
Ole Andreas Halvorsen of Viking Global
Our Methodology
These are the top 10 holdings of Andreas Halvorsen’s hedge fund portfolio as of the end of the first quarter of 2022.
10. Comcast Corp. (NASDAQ:CMCSK)
Viking Global Investors’ Stake Value: $659.2M
Percentage of Viking Global Investors’ 13F Portfolio: 2.66%
Number of Hedge Fund Holdings: 78
Comcast Corp. (NASDAQ:CMCSK) is an American multinational telecommunications conglomerate, based in Philadelphia, Pennsylvania. It provides services to U.S. residential and commercial consumers in over 40 states and is the second-largest broadcasting and cable-television company in the world by revenue.
First Eagle Investment Management is the largest stakeholder in the company owning over 30 million shares worth at around $1.4 billion. Halvorsen’s Viking Global owns over 14 million shares worth more than $659 million, which is a result of Halvorsen decreasing his hold over Comcast Corp. (NASDAQ:CMCSK) by 1%, with the stock making up for 2.66% of Viking Global’s 13F portfolio.
Clearbridge Investments mentioned Comcast Corporation (NASDAQ:CMCSK) in their Q4 2021 investment letter, a copy of which can be obtained here. This is what they had to say:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast (NASDAQ:CMCSK) was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
9. Chubb Ltd. (NYSE:CB)
Viking Global Investors’ Stake Value: $684.7M
Percentage of Viking Global Investors’ 13F Portfolio: 2.76%
Number of Hedge Fund Holdings: 31
Based in Zurich, Switzerland, Chubb Limited (NYSE:CB) is an American insurance provider, covering property and casualty, accident and health, reinsurance, and life insurance. It is the largest publicly traded casualty and property insurance company in the world by revenue and currently operates in 55 countries. As of Q1 2022, Halvorsen’s Viking Global is the largest shareholder in Chubb Limited (NYSE:CB), having stakes worth more than $684.7 million. Chubb Limited (NYSE:CB) contributes 2.76% to Viking Global’s 13F investment portfolio.
At the end of the first quarter of 2022, 31 hedge funds are long Chubb Limited (NYSE:CB), a decrease compared to the previous quarter, where 34 hedge funds were long the stock.
Aristotle Capital Management, an independent, employee/owned investment firm, mentioned Chubb Limited (NYSE:CB) in their Q1 2022 investment letter. This is what they had to say:
“Our investment in Chubb (NYSE:CB) began in the fourth quarter of 2015, shortly after ACE Limited announced it would acquire the Chubb Corporation (NYSE:CB), creating the largest global property and casualty insurance company by underwriting income. During our nearly seven-year holding period, the company’s combination progressed leading to the realization of main catalysts we had identified. These included cost savings, broadened product offerings and an expanded customer base, as well as enhanced distribution capabilities and improved pricing due to scale. In addition, Chubb (NYSE:CB) successfully grew its profitable high-net-worth personal lines. While we still consider Chubb (NYSE:CB) to be a high-quality business, few catalysts remain after what was, in our opinion, a remarkable run of successful business execution. As such, we decided to step aside in favor of what we believe to be a more optimal investment in Blackstone.”
8. APi Group Corp. (NYSE:APG)
Viking Global Investors’ Stake Value: $704M
Percentage of Viking Global Investors’ 13F Portfolio: 2.84%
Number of Hedge Fund Holdings: 31
Founded in 1926 and based in New Brighton, Minnesota, APi Group Corp (NYSE:APG) is a global business services provider of safety and specialty services, which operates in over 500 locations worldwide. As of Q1 2022, Halvorsen’s Viking Global is the largest stakeholder in the stock, with APi (NYSE:APG) making up for 2.84% of Viking Global’s 13F portfolio. Halvorsen owns more than 33 million shares worth around $704 million, with the hedge fund billionaire strengthening his hold over the stock by 1%.
APi (NYSE:APG) is rising in popularity among hedge funds, as 31 hedge funds in our database were long the stock in the first quarter of 2022, as compared to 27 a quarter ago.
7. Fortive Corp. (NYSE:FTV)
Viking Global Investors’ Stake Value: $733.1M
Percentage of Viking Global Investors’ 13F Portfolio: 2.96%
Number of Hedge Fund Holdings: 43
Headquartered in Everett, Washington, Fortive (NYSE:FTV) is an American diversified industrial technology conglomerate company, spun off from Danaher Corp. in 2016. In 2020, Fortive (NYSE:FTV) ranked on the Fortune 500 list for the third time, and was named one of the world’s most admired companies. As of the first quarter of 2022, Halvorsen has increased his stake in the company by 42%, purchasing over 12 million shares worth at around $733.1 million.
On the 8th of July, Barclays analyst Julian Mitchell lowered the price target on the shares of Fortive (NYSE:FTV) from $74 to $68, maintaining an ‘Overweight’ rating on the stock. According to Insider Monkey’s exclusive database, investor interest in Fortive (NYSE:FTV) has risen with 43 hedge funds long the stock in Q1 2022, a significant increase from the 34 hedge funds which listed Fortive (NYSE:FTV) in their investment portfolio last quarter.
Fortive (NYSE:FTV) was mentioned in Argosy Investors Q4 2020 investor letter, a copy of which can be obtained here. This is what they had to say:
“We’re getting long in the tooth here, so we’ll conclude with an update Fortive (FTV). Fortive (NYSE:FTV) completed its spinoff of Vontier, a business that manufactures gas station terminals, smart city traffic lights, a telematics business, and an auto repair tools distribution business, led by CEO Mark Morelli, a wellregarded external hire from Columbus McKinnon. My outlook is bright for both Fortive (NYSE:FTV) and Vontier, though Vontier is more heavily focused in the automotive sector and faces some multi-year headwinds from any transition to electric vehicles. Vontier is also nearing the end of a large installation cycle in its Gilbarco-Veeder-Root business which makes today’s earnings somewhat higher than they will be a couple years from now. If there is one fact I am confident about, both Fortive (NYSE:FTV) and Vontier will look very different three years from now due to their highly effective acquisition and integration processes that leverages Lean (a concept discussed in prior letters).”
6. Parker Hannifin Corp (NYSE:PH)
Viking Global Investors’ Stake Value: $898.2M
Percentage of Viking Global Investors’ 13F Portfolio: 3.63%
Number of Hedge Fund Holdings: 39
Based in Mayfield Heights, Ohio, Parker-Hannifin Corp. (NYSE:PH) is an American company which specializes in the production and development of motion and control technologies. Founded in 1917, the company is one of the largest corporations in the motion control technology sector, including aerospace, climate control, electromechanical filtration, fluid and gas handling, and much more. Halvorsen’s Viking Global strengthened their hold over the stock by 4% in Q1 2022, with Parker-Hannifin Corp. (NYSE:PH) now making up for 3.63% of Halvorsen’s 13F investment portfolio. He owns over 3.1 million shares worth at around $898.2 million, making him the largest shareholder in the company. This is closely followed by Ric Dillon’s Diamond Hill Capital, which owns a stake worth over $444 million in Parker-Hannifin Corp. (NYSE:PH).
Alongside heavyweights like Mastercard Inc. (NYSE:MA), Uber Technologies (NYSE:UBER), and Meta Platforms (NASDAQ:FB), Parker-Hannifin Corp. (NYSE:PH) makes it to the list of the 10 best stocks to buy now according to billionaire Andreas Halvorsen.
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Disclosure: none. 10 Best Stocks To Buy Now According to Billionaire Andreas Halvorsen is originally published on Insider Monkey.
