In this article, we discuss 10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen. You can skip our detailed analysis of Viking Global ‘s strategy and the current market outlook and go directly to 5 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen.
Worth $6.6 Billion, Andreas Halvorsen is one of the most well-known investors in the world. He is known for his hedge fund, Viking Global. Andreas used to be an equity trader at Julian Robertson’s Tiger Management and started his own company in 1999.
Ever since starting the fund, Andreas has adopted a research-based, long-term investment strategy which has made him a billionaire. The fund uses fundamental analysis to pick investments which mainly range between private and public equities throughout many industries and geographies. It also looks at the business model of the companies they invest in, the industry trends (both cyclical and secular) and management team qualities. This approach allows Vikings to choose the best investments and capitalize on the most profitable investment opportunities.
Viking Global Investors, as per its last reported 13F filing for Q2 2022, held $21.8 billion in managed 13F securities and had a top 10 holdings concentration of 35.4%. Viking Global Investors’s largest holding is T-Mobile US, Inc. (NASDAQ:TMUS), with 9,170,393 shares held worth over $1.2 billion.
Viking Global Investors also invests a lot in blue chip stocks.
Blue chip stocks are companies that have a great reputation and are generally among the leaders in their sectors. They tend to be consistently profitable and also have solid future prospects. Some examples include JPMorgan Chase & Co. (NYSE:JPM), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL). Because they tend to have great fundamentals, blue chips tend to do well in the long run and many return substantial capital back to shareholders.
While many quality blue chips tend to do well in the long term, the markets have been very volatile in 2022. So far this year, there has been widespread uncertainty due to rising energy prices which has caused shocks across all sectors. Governments around the world have also been forced to raise interest rates to calm down inflation. If economic data continues to miss expectations, stocks could decline further.
Nevertheless, many quality blue chips could be opportunities for long term investors given the low valuations.
Andreas Halvorsen of Viking Global
Methodology
We took 10 stocks from Andreas Halvorsen’s Viking Global’s 13F portfolio at the end of Q2 2022 that we think have the right mixture of industry leadership, strong fundamentals, and growth potential. We then ranked them from #10 to #1 based on the stake value of Viking Global 13F portfolio in those stocks in the second quarter. We also provided the number of hedge funds in our database that held shares in the stock at the end of Q2 2022.
10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen
10. The Walt Disney Company (NYSE:DIS)
Viking Global Investor’s Stake Value: $164,398,000
Percentage of Viking Global Investor’s Portfolio: 0.75%
Number of hedge fund holders: 109
The Walt Disney Company (NYSE:DIS), also known as Disney, is one of the largest American multinational mass media and entertainment conglomerates with famous assets such as Marvel and Fox. During Q2 2022, The Walt Disney Company (NYSE:DIS) is a new addition to Viking Global’s portfolio as the fund purchased 1,741,500 shares of the company in the quarter. The fund’s total stake in the company amounted to roughly $164 million, which represented 0.75% of its 13F portfolio.
The Walt Disney Company (NYSE:DIS) reported strong result for Q3 2022. The company reported revenue of $21.5 billion, an increase of 26% YoY, while normalized EPS was $1.09, beating the market consensus estimate by $0.10. Management attributed the good performance in the quarter to strong growth from Disney parks as well as higher live-sports viewership. The Walt Disney Company (NYSE:DIS) also saw growth across all its segments which include direct-to-consumer, advertising, entertainment, and Disney plus.
At the end of Q2 2022, 109 hedge funds tracked by Insider Monkey owned stakes in The Walt Disney Company (NYSE:DIS). Arrowstreet Capital was the stock’s leading stakeholder in Q2, owning The Walt Disney Company (NYSE:DIS) shares worth over $366 million. The fund’s position in the stock increased by 4% from Q1 2022.
Alongside Chubb Limited (NYSE:CB), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), The Walt Disney Company (NYSE:DIS) is a blue chip holding in billionaire Andreas Halvorsen’s 13F portfolio at the end of Q2 2022.
9. Meta Platforms, Inc. (NASDAQ:META)
Viking Global Investor’s Stake Value: $462,121,000
Percentage of Viking Global Investor’s Portfolio: 2.11%
Number of hedge fund holders: 184
Previously known as Facebook, Meta Platforms, Inc. (NASDAQ:META) is the owner of Facebook, Instagram, and WhatsApp, three of the most widely used social media apps in the world, making it the biggest online social network operator in the world. During Q2 2022, Viking Global boosted its stake in the company by 137%. The fund’s total stake in the company amounted to roughly $462 million, which represented 2.11% of its 13F portfolio. As a result, Meta Platforms, Inc. (NASDAQ:META) ranks #9 on our list of 10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen.
Meta Platforms, Inc. (NASDAQ:META) reported a relatively weak performance in Q2 2022. The company reported revenue of $28.8 billion for the quarter, a decline of 0.88% YoY, and EPS of $2.46, which missed the consensus estimate by $0.09. The company is facing macro headwinds as the advertising business remains under pressure as businesses cut marketing budgets in a slowing economy.
At the end of Q2 2022, 184 hedge funds tracked by Insider Monkey owned stakes in Meta Platforms, Inc. (NASDAQ:META). Fisher Asset Management was the stock’s leading stakeholder in Q2, owning Meta Platforms, Inc. (NASDAQ:META) shares worth over $1.8 billion.
8. Visa Inc. (NYSE:V)
Viking Global Investor’s Stake Value: $503,223,000
Percentage of Viking Global Investor’s Portfolio: 2.3%
Number of hedge fund holders: 166
Headquartered in San Francisco, Visa Inc. (NYSE:V) facilitates electronic payment systems all over the world through Visa debit cards, credit cards, and pre-paid cards. During Q2 2022, Viking Global decreased its stake in the company by 2%. The fund’s total stake in the company amounted to roughly $503 million, which represented 2.3% of its 13F portfolio.
Visa Inc. (NYSE:V) recently announced volume and transaction data for July and from August 1-28 in a regulatory filing. The company noted:
“August U.S. payments volume on a year-over-year basis was up 11%, flat with July, while Credit and Debit grew 17% and 7%, respectively, both up 1 point from July.”
At the end of Q2 2022, 166 hedge funds tracked by Insider Monkey owned stakes in Visa Inc. (NYSE:V). TCI Fund Management was the stock’s leading stakeholder in Q2, owning Visa Inc. (NYSE:V) shares worth over $3.9 billion. The fund’s position in the stock remained unchanged from Q1 2022.
7. American International Group, Inc. (NYSE:AIG)
Viking Global Investor’s Stake Value: $516,859,000
Percentage of Viking Global Investor’s Portfolio: 2.36%
Number of hedge fund holders: 44
American International Group, Inc. (NYSE:AIG) is one of the world’s major insurance and financial services companies. It provides property, casualty, and life insurance through a network of subsidiaries. Its income is nearly equally split between commercial and consumer lines. American International Group, Inc. (NYSE:AIG) is a new addition to Viking Global’s portfolio as the fund purchased 10,108,715 shares of the company during Q2 2022. The fund’s total stake in the company amounted to roughly $516 million, which represented 2.36% of its 13F portfolio. As a result, American International Group, Inc. (NYSE:AIG) ranks 10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen.
As a blue chip, American International Group, Inc. (NYSE:AIG) has considerable scale and earnings power that could help it increase its dividend in the future. Currently, the stock has a forward dividend per share of $1.28, which represents only around a fifth of its profits.
At the end of Q2 2022, 44 hedge funds tracked by Insider Monkey owned stakes in American International Group, Inc. (NYSE:AIG). Harris Associates was the stock’s leading stakeholder in Q2, owning American International Group, Inc. (NYSE:AIG) shares worth over $1.3 billion. The fund’s position in the stock decreased by 7% from Q1 2022.
6. Brookfield Asset Management Inc. (NYSE:BAM)
Viking Global Investor’s Stake Value: $539,474,000
Percentage of Viking Global Investor’s Portfolio: 2.46%
Number of hedge fund holders: 34
Brookfield Asset Management Inc. (NYSE:BAM) is sixth on our list. It is a Canadian company that has $725 billion in assets under management. It posted a revenue of $23.26 billion which converted to a profit of $590 million ($0.34 per share) this quarter. During Q2 2022, Viking Global decreased its stake in the company by 26%. The fund’s total stake in the company amounted to roughly $539 million, which represented 2.46% of its 13F portfolio.
Here is what SaltLight Capital Management specifically said about Brookfield Asset Management Inc. (NYSE:BAM) in its Q2 2022 investor letter:
“In our letter last quarter, we talked in detail about our investment in Brookfield Asset Management Inc. (NYSE:BAM) and a potential value-unlock transaction. BAM also operates a large holding company trading at a substantial discount. However, management has a better track record in unlocking value.
In our letter we wrote:
During the quarter, management announced that they’re considering splitting their ‘asset heavy’ investments and the ‘asset light’ asset management business. Nothing has been crystalized, but this could be an additional value unlock. In May, BAM confirmed that they are indeed going through with a transaction to spin off a portion of their ‘asset light’ asset management business by the end of the year…”
At the end of Q2 2022, 34 hedge funds tracked by Insider Monkey owned stakes in Brookfield Asset Management Inc. (NYSE:BAM). Akre Capital Management was the stock’s leading stakeholder in Q2, owning Brookfield Asset Management Inc. (NYSE:BAM) shares worth over $591 million. The fund’s position in the stock increased by 2% from Q1 2022.
Like Brookfield Asset Management Inc. (NYSE:BAM), Chubb Limited (NYSE:CB), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) are blue chip stocks that are in billionaire Andreas Halvorsen’s 13F portfolio at the end of Q2 2022.
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Disclosure: None. 10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen is originally published on Insider Monkey.
