In this piece, we will take a look at the ten best stocks to buy under $20 according to billionaire Andreas Halvorsen’s Viking Global. To skip the details about the hedge fund and its head, jump ahead to 5 Best Stocks Under $20 According to Billionaire Andreas Halvorsen’s Viking Global.
Ole Andreas Halvorsen is a Norwegian-born hedge fund billionaire who is at the helm of affairs at the fund Viking Global. When compared to some of the other investment behemoths lining up Wall Street, Viking Global is a relatively young company that was founded by Mr. Halvorsen in 1999. Since its founding, the executive has held crucial positions at the company, and currently, he is serving as its chief executive officer (CEO).
Mr. Halvorsen was born in Norway in 1961, and like some of his peers in the hedge fund industry, he comes from a military background. The now billionaire investor attended and graduated from the Norwegian Naval Academy and became a member of the Norwegian Sea, Air, and Land (SEAL) team.
Later on, he would move to the United States for pursuing his undergraduate education. Mr. Halvorsen graduated from Williams College in Massachusetts with a degree in Economics. After this, he would attended the illustrious Stanford Graduate School of Business and received his Master in Business Administration (MBA) from one of the world’s top universities in 1990.
After receiving his MBA, the executive would jump head first into the financial world, taking up roles at some of the most famous firms in the industry. One of his jobs would see Mr. Halvorsen work at the investment division of the bank Morgan Stanley. Additionally, he would also go on to work at Tiger Management Corporation, where he would come under the mentorship of the renowned Julian Robertson. The Viking Global chief would become a member of the informal group referred to as Tiger Cubs. This group is a set of investors who were at Tiger Global and would then depart to set up their own hedge funds. At Tiger Global, Mr. Halvorsen would take up a variety of roles, covering positions such as an analyst, director, managing committee membership, and a role on the fund’s advisory board.
His journey at Viking Global has made Mr. Halvorsen into a billionaire. According to Forbes Magazine, he was worth a whopping $6.6 billion as of April 2022. He set the firm up in October 1999, with $520 million in capital and a team of 17 people. The fund focuses on a long term, research intensive approach to investment. One tool which it uses is a Transaction Cost Analysis (TCA), which analyzes the cost of each trade.
The firm has massively grown its portfolio two decades after being set up. As of the fourth quarter of last year, it had a portfolio that was worth $34 billion, and on its website, it boasts of having more than $54 billion in capital across public and private investments. Some of the well known publicly traded stocks in Viking Global’s portfolio are Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:FB).
Ole Andreas Halvorsen of Viking Global
Our Methodology
To determine which firms are on Viking Global’s radar, we took a look at its regulatory filings for Q4 2021. This enabled us to sift out the top ten stocks under $20. Following this, we took a detailed look at the firms by studying their investor letters, analyst coverage, earnings reports, relevant industry news, large holdings, and hedge fund sentiment gathered through Insider Monkey’s survey of 924 funds for the fourth quarter of last year.
Best Stocks Under $20 According to Billionaire Andreas Halvorsen’s Viking Global
10. Rallybio Corporation (NASDAQ:RLYB)
Viking Global’s Stake Value: $40 million
Percentage of Viking Global’s 13F Portfolio: 0.11%
Number of Hedge Fund Holders: 4
Share Price on April 26, 2022: $10.18
Rallybio Corporation (NASDAQ:RLYB) is an American biotechnology firm that is headquartered in New Haven, Connecticut. The firm develops products for patients suffering from serious and potentially life threatening diseases. These include thrombocytopenia and others.
Viking Global owned 4.1 million Rallybio Corporation (NASDAQ:RLYB) shares that were worth $40 million by the end of the fourth quarter of last year. The stake constituted 0.11% of its investment portfolio. Insider Monkey’s Q4 2021 survey of 924 hedge funds highlighted that 4 had also invested in the company.
Rallybio Corporation (NASDAQ:RLYB) posted -$0.42 in GAAP EPS for its fiscal fourth quarter, missing analyst estimates for the metric. By the end of 2021, the company had $175 million in cash and cash equivalents. JMP Securities set a $32 price target for the company in February 2022, as it outlined that some of the company’s treatments are for diseases that do not have any such options.
Rallybio Corporation (NASDAQ:RLYB)’s largest investor after Viking Global is Lei Zhang’s Hillhouse Capital Management which owns 903,673 shares that are worth $8.6 million.
Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB) are joined by Rallybio Corporation (NASDAQ:RLYB) as one of Viking Global’s favorite stocks.
9. Edgewise Therapeutics, Inc. (NASDAQ:EWTX)
Viking Global’s Stake Value: $41.6 million
Percentage of Viking Global’s 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 10
Share Price on April 26, 2022: $8.5
Edgewise Therapeutics, Inc. (NASDAQ:EWTX) is another American biotechnology firm that is headquartered in Boulder, Colorado. It focuses its efforts on developing treatments for musculoskeletal diseases. These include Duchenne muscular dystrophy and Becker muscular dystrophy.
As its fiscal fourth quarter came to an end, Edgewise Therapeutics, Inc. (NASDAQ:EWTX) had raked in -$0.26 in GAAP EPS, beating analyst estimates. RBC Capital set a $31 price target and an Outperform rating for the company’s shares in April 2022, outlining that a drug candidate is showing strong testing results.
Mr. Halvorsen’s firm owned a $41 million stake in Edgewise Therapeutics, Inc. (NASDAQ:EWTX) by the end of the fourth quarter of last year. This came through owning 2.7 million shares and it represented 0.12% of the firm’s investment portfolio. During the same time period, 10 of the 924 hedge funds part of Insider Monkey’s research had also invested in the firm.
Samuel Isaly’s OrbiMed Advisors is Edgewise Therapeutics, Inc. (NASDAQ:EWTX)’s largest investor through a $213 million stake that comes via owning 13.9 million shares.
8. Talaris Therapeutics, Inc. (NASDAQ:TALS)
Viking Global’s Stake Value: $50 million
Percentage of Viking Global’s 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 11
Share Price on April 26, 2022: $7
Talaris Therapeutics, Inc. (NASDAQ:TALS) is a clinical stage cell therapy company that is based in Louisville, Kentucky, United States. The company focuses on developing treatments for complications arising out of organ transplants such as those for the kidneys.
As Q4 2021 came to an end, Viking Global held a $50 million stake in Talaris Therapeutics, Inc. (NASDAQ:TALS). This came through the firm owning 3.2 million shares and it represented 0.14% of its investment portfolio. Insider Monkey’s fourth quarter of 2021 poll of 924 hedge funds showed that 11 had also bought a stake in the company.
Talaris Therapeutics, Inc. (NASDAQ:TALS) posted -$1.64 for its latest fiscal year GAAP EPS. For the same time period, the company also reported $243 million in cash and market securities. Earlier this month, the company reported positive data from its treatment targeting COVID 19 complications in patients that have undergone a kidney transplant.
Talaris Therapeutics, Inc. (NASDAQ:TALS)’s largest investor after Viking Global is Ken Griffin’s Citadel Investment Group which owns 2.6 million shares that are worth 40 million.
7. KE Holdings Inc. (NYSE:BEKE)
Viking Global’s Stake Value: $58.7 million
Percentage of Viking Global’s 13F Portfolio: 0.17%
Number of Hedge Fund Holders: 34
Share Price on April 26, 2022: $12.32
KE Holdings Inc. (NYSE:BEKE) is a real estate transactions service provider that is headquartered in Beijing, the People’s Republic of China. Its platform allows buyers and sellers to buy and sell existing and new homes, alongside providing rental services and renovation.
KE Holdings Inc. (NYSE:BEKE)’s fourth fiscal quarter saw it earn RMB80 billion in revenue and RMB0.95 in GAAP EPS, beating analyst estimates for both. UBS set a $22.5 price target for the company in April 2022, as it stated that seasonality and business risks were priced into the share price.
Mr. Halvorsen’s hedge fund held a $58.7 million stake in KE Holdings Inc. (NYSE:BEKE) during 2021’s final quarter. This came in the form of 2.9 million shares and it represented 0.17% of the firm’s investment portfolio. Insider Monkey scanned 924 Q4 2021 hedge fund holdings to find out that 34 had also invested in the firm.
KE Holdings Inc. (NYSE:BEKE)’s largest investor is Stephen Mandel’s Lone Pine Capital which owns 30.9 million shares that are worth $622 million.
6. AdaptHealth Corp. (NASDAQ:AHCO)
Viking Global’s Stake Value: $96.6 million
Percentage of Viking Global’s 13F Portfolio: 0.28%
Number of Hedge Fund Holders: 21
Share Price on April 26, 2022: $13.96
AdaptHealth Corp. (NASDAQ:AHCO) is a medical devices provider headquartered in Plymouth Meeting, Pennsylvania. It provides devices such as glucose monitors and insulin pumps, and services such as sleep therapy, c-PAP, and BPAP services.
Viking Global’s Q4 2021 stake in AdaptHealth Corp. (NASDAQ:AHCO) was worth $96.6 million and it came in the form of the firm owning 3.9 million shares of the medical company. During the same time period, 21 of the 924 hedge funds part of Insider Monkey’s survey had also invested in the medical devices seller.
AdaptHealth Corp. (NASDAQ:AHCO) posted $702 million in revenue and $0.15 in GAAP EPS for its fiscal fourth quarter, missing analyst EPS estimates but beating them for revenue. RBC Capital lowered its price target from $31 to $26 in March 2022, stating that the Q4 results had influenced the decision.
AdaptHealth Corp. (NASDAQ:AHCO)’s largest investor is James E. Flynn’s Deerfield Management which owns 10 million shares that are worth $250 million.
Alongside Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:FB), AdaptHealth Corp. (NASDAQ:AHCO) is a top Andreas Halvorsen stock pick.
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Disclosure: None. 10 Best Stocks Under $20 According to Billionaire Andreas Halvorsen’s Viking Global is originally published on Insider Monkey.
