In this article, we discuss 9 stocks to buy according to billionaire Andreas Halvorsen’s Viking Global. If you want to skip our detailed analysis of these stocks, go directly to 5 Stocks to Buy According to Billionaire Andreas Halvorsen’s Viking Global.
Norwegian billionaire Ole Andreas Halvorsen is the founding partner of Viking Global, and currently serves as the chief executive officer of the hedge fund.
Viking Global is a Connecticut-based hedge fund with a $34.4 billion Q4 13F portfolio, and it invests primarily in the industrials, healthcare, information technology, finance, consumer discretionary, and communications sectors.
Halvorsen holds an MBA from Stanford University, and his finance career began with Morgan Stanley (NYSE:MS)’s investment banking division. Soon after that, he joined Tiger Management, a hedge fund run by Julian Robertson, where Halvorsen worked in multiple roles, starting as an analyst. He was eventually promoted to the senior managing director, director of equities, and also became a member of the management committee.
Andreas Halvorsen is one of the Tiger Cubs who left Tiger Management to successfully start their own hedge funds. The billionaire focuses on long-term investments in public and private securities, and the most notable stocks from his fourth quarter portfolio include Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and Tesla, Inc. (NASDAQ:TSLA).
Andreas Halvorsen of Viking Global
Our Methodology
We used the Q4 portfolio of Andreas Halvorsen to select the stocks for this analysis, ranking the securities according to the billionaire’s stake value in each holding.
Stocks to Buy According to Billionaire Andreas Halvorsen’s Viking Global
9. Parker-Hannifin Corporation (NYSE:PH)
Viking Global’s Stake Value: $972,468,000
Percentage of Viking Global’s 13F Portfolio: 2.81%
Number of Hedge Fund Holders: 39
Parker-Hannifin Corporation (NYSE:PH) is an Ohio-based company that specializes in motion and control technologies. Halvorsen’s Viking Global owned a $972.4 million stake in Parker-Hannifin Corporation (NYSE:PH) in the fourth quarter of 2021, representing 2.81% of the fund’s 13F securities.
On January 27, Parker-Hannifin Corporation (NYSE:PH) declared a $1.03 per share quarterly dividend, offering a forward yield of 1.33%. The dividend is payable on March 4, to shareholders of record on February 11.
Publishing its Q4 results on February 3, Parker-Hannifin Corporation (NYSE:PH) announced earnings per share of $4.46, beating estimates by $0.53. Revenue for the quarter equaled $3.82 billion, up 12.10% year-over-year, exceeding estimates by $105.19 million.
Mizuho analyst Brett Linzey initiated coverage of Parker-Hannifin Corporation (NYSE:PH) on December 16 with a Neutral rating and a $345 price target, stating that there is “plenty to like” about the company’s long-term outlook but not enough near-term upside to warrant a Buy rating.
Among the hedge funds tracked by Insider Monkey in the fourth quarter, one of the leading Parker-Hannifin Corporation (NYSE:PH) stakeholders is Ric Dillon’s Diamond Hill Capital, with 1.4 million shares worth approximately $476.2 million. Overall, 39 hedge funds were bullish on the stock at the end of December 2021.
Just like Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and Tesla, Inc. (NASDAQ:TSLA), Parker-Hannifin Corporation (NYSE:PH) is one of the top stock picks of Viking Global.
Here is what Oakmark Funds has to say about Parker-Hannifin Corporation (NYSE:PH) in their Q1 2021 investor letter:
“Parker Hannifin approached our estimates of intrinsic value and were, therefore, eliminated during the period. The company was a longstanding investment of the Fund and produced successful outcomes. We believe Parker Hannifin, one of our longest tenured positions, is a high-quality, well-managed industrial with strong competitive positions in good end markets. However, after the market price reflected these positives, we elected to sell to pursue more attractive alternatives that were priced at steeper discounts to our estimates of intrinsic value.”
8. Brookfield Asset Management Inc. (NYSE:BAM)
Viking Global’s Stake Value: $1,062,875,000
Percentage of Viking Global’s 13F Portfolio: 3.08%
Number of Hedge Fund Holders: 29
Brookfield Asset Management Inc. (NYSE:BAM) is one of the largest investment management companies in the world, headquartered in Toronto. Brookfield Asset Management Inc. (NYSE:BAM) invests primarily in real estate, renewable power, infrastructure, credit, and private equity.
Viking Global elevated its stake in Brookfield Asset Management Inc. (NYSE:BAM) by 4% in the fourth quarter, with 17.60 million shares worth $1.06 billion, representing 3.08% of the fund’s total 13F portfolio.
Brookfield Asset Management Inc. (NYSE:BAM) on February 10 declared a $0.14 per share quarterly dividend, a 7.7% increase from its prior dividend of $0.13. The dividend is payable on March 31, to shareholders of record on February 28.
The investment manager announced on December 17 that it had closed its flagship real estate debt fund, with capital commitments of over $4 billion, which will focus on lending against top-notch real estate assets in the US, the UK, and European metropolitan markets. The fund has made 15 investments to date, amounting to $700 million.
Brookfield Asset Management Inc. (NYSE:BAM) expects to raise over $15 billion for its impact fund, and the amount will be used for investments in utility and industrial companies that are looking to decarbonize. Brookfield Asset Management Inc. (NYSE:BAM) will also use the funds to build renewable sources of energy for industrial customers.
Deutsche Bank analyst Brian Bedell on February 11 raised the price target on Brookfield Asset Management Inc. (NYSE:BAM) to $64 from $59 and kept a Hold rating on the shares following the “strong” Q4 results.
Akre Capital Management is one of the leading stakeholders of Brookfield Asset Management Inc. (NYSE:BAM) as of Q4 2021, with a $792.6 million position in the company. Overall, 29 hedge funds were long Brookfield Asset Management Inc. (NYSE:BAM) in the fourth quarter.
Here is what Baron Funds has to say about Brookfield Asset Management Inc. (NYSE:BAM) in its Q2 2021 investor letter:
“The shares of long-term holding Brookfield Asset Management Inc. gained 15% in the most recent quarter. The company is a leading alternative asset manager focused on investing in high-quality real estate and infrastructure related assets that tend to generate predictable and growing cash flows. We remain bullish about the ongoing prospects for Brookfield given the secular growth opportunity for alternative assets, the company’s many competitive advantages including scale, global capabilities, its well known brand name, operating expertise, and performance track record. We hold management in high regard and believe the shares remain attractively valued.”
7. Adaptive Biotechnologies Corporation (NASDAQ:ADPT)
Viking Global’s Stake Value: $841,623,000
Percentage of Viking Global’s 13F Portfolio: 2.44%
Number of Hedge Fund Holders: 22
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) is a commercial company engaged in the research, development, and distribution of immune-driven medicine. Viking Global owns roughly 30 million Adaptive Biotechnologies Corporation (NASDAQ:ADPT) shares as of the fourth quarter of 2021, worth over $841.6 million, representing 2.44% of the fund’s total 13F securities.
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) announced its Q4 financial results on February 15, posting a loss per share of $0.43, exceeding estimates by $0.02. Revenue over the period jumped 25.66% year-over-year to $37.93 million, outperforming estimates by $1.08 million.
BTIG analyst Mark Massaro lowered the price target on Adaptive Biotechnologies Corporation (NASDAQ:ADPT) on February 16 to $30 from $35 and kept a Buy rating on the shares. The company’s Q4 earnings were a “modest beat”, but its guidance was below consensus, albeit setting an “achievable bar”, the analyst told investors in a research note.
Among the hedge funds tracked by Insider Monkey, 22 funds were bullish on Adaptive Biotechnologies Corporation (NASDAQ:ADPT) during Q4 2021, with stakes totaling $1.47 billion. Matrix Capital Management is one of the leading stakeholders of the company, with 11.5 million shares worth $324.7 million.
In addition to Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and Tesla, Inc. (NASDAQ:TSLA), Adaptive Biotechnologies Corporation (NASDAQ:ADPT) is one of the notable stocks from Andreas Halvorsen’s fourth quarter portfolio.
6. Microsoft Corporation (NASDAQ:MSFT)
Viking Global’s Stake Value: $986,347,000
Percentage of Viking Global’s 13F Portfolio: 2.86%
Number of Hedge Fund Holders: 262
Microsoft Corporation (NASDAQ:MSFT) announced on December 21 that the European Union has approved its $16 billion bid to takeover Nuance Communications, Inc. (NASDAQ:NUAN), a speech recognition and AI software company that helped create Apple Inc. (NASDAQ:AAPL)’s virtual assistant, Siri. This acquisition will allow Microsoft Corporation (NASDAQ:MSFT) to effectively offer cloud services to the healthcare sector.
Andreas Halvorsen’s Viking Global owns 2.9 million Microsoft Corporation (NASDAQ:MSFT) shares as of December 2021, worth $986.3 million, representing 2.86% of the firm’s total investments.
Jefferies analyst Brent Thill raised the price target on Microsoft Corporation (NASDAQ:MSFT) to $400 from $375 and kept a Buy rating on the shares on January 6. Despite a “massive 39% outperformance” versus the iShares Expanded Tech-Software Sector ETF in 2021 from Microsoft Corporation (NASDAQ:MSFT), he continues to see the potential in the stock as valuation provides downside protection.
Billionaire Ken Fisher’s Fisher Asset Management is a prominent Microsoft Corporation (NASDAQ:MSFT) stakeholder from Q4 2021, with 26.8 million shares worth over $9 billion. Overall, 262 hedge funds reported owning stakes worth $75.6 billion in Microsoft Corporation (NASDAQ:MSFT) in the fourth quarter.
Here is what ClearBridge Sustainability Leaders Strategy has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter:
“The Strategy modestly outperformed the benchmark; consistent with our fundamental approach that seeks balanced exposure to industries and the growth and value spectrum, performance was driven by companies from diverse sectors. Microsoft, which develops software including the Windows family of products, the Microsoft Office system and the Azure cloud platform, and is a leader in data protection and customer privacy as well as human rights and diversity, contributed strongly as earnings maintained positive sentiment. Microsoft is seeing a number of businesses reach a new, higher level of engagement, adoption and momentum.”
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Disclosure: None. 9 Stocks to Buy According to Billionaire Andreas Halvorsen’s Viking Global is originally published on Insider Monkey.
