In this article, we discuss the top 5 new stock picks of Andreas Halvorsen’s Viking Global. If you want our detailed analysis of these stocks, go directly to Andreas Halvorsen’s Viking Global Portfolio: 10 New Stock Picks.
5. Farfetch Limited (NYSE:FTCH)
Viking Global’s Stake Value: $432,446,000
Percentage of Viking Global’s 13F Portfolio: 1.19%
Number of Hedge Fund Holders: 51
Farfetch Limited (NYSE:FTCH), a British-Portuguese online fashion retailer offering over 700 global luxury brands, is a new addition to Halvorsen’s Q3 portfolio, with Viking Global purchasing 11.53 million shares in the company, worth $432.4 million, accounting for 1.19% of the firm’s total investments.
Farfetch Limited (NYSE:FTCH), on November 18, posted its Q3 earnings. EPS in the period amounted to -$0.14, beating estimates by $0.02. Farfetch Limited (NYSE:FTCH) reported a quarterly revenue of $582.57 million, missing estimates by $8.78 million.
UBS analyst Kunal Madhukar assumed coverage of Farfetch Limited (NYSE:FTCH) on December 3 with a Buy rating and a $45 price target. The analyst is bullish on the stock as the technology used by Farfetch Limited (NYSE:FTCH) cannot be replicated according to him, and the company is positioned to benefit from exciting online trends.
Out of the 867 hedge funds monitored by Insider Monkey, 51 funds were long Farfetch Limited (NYSE:FTCH) in Q3 2021, with Stephen Mandel’s Lone Pine Capital holding a leading position in Farfetch Limited (NYSE:FTCH), with almost 23 million shares worth approximately $860 million.
Here is what U.S. SMID Company Growth Fund has to say about Farfetch Limited (NYSE:FTCH) in its Q3 2021 investor letter:
“Farfetch, an e-commerce luxury retailer, traded down during the quarter despite beating earnings expectations. We continue to believe Farfetch is well-positioned to capitalize on growth in ecommerce luxury retail because of its scale and carefully cultivated partnerships with leading luxury brands. We added to our position.”
4. Comcast Corporation (NASDAQ:CMCSA)
Viking Global’s Stake Value: $569,179,000
Percentage of Viking Global’s 13F Portfolio: 1.57%
Number of Hedge Fund Holders: 75
Comcast Corporation (NASDAQ:CMCSA), a Pennsylvania-based multinational telecommunications conglomerate, posted a Q3 EPS of $0.87 on October 28, beating estimates by $0.12. The quarterly revenue amounted to $30.3 billion, up 18.67% year-over-year, exceeding estimates by almost $425 million.
Viking Global purchased 10.17 million shares in Comcast Corporation (NASDAQ:CMCSA) in the third quarter, worth $569.1 million, representing 1.57% of the fund’s total investments.
One of the leading Comcast Corporation (NASDAQ:CMCSA) stakeholders from Q3 is Boykin Curry’s Eagle Capital Management, with 28.86 million shares valued at $1.61 billion. Overall, 75 hedge funds reported owning stakes in Comcast Corporation (NASDAQ:CMCSA) at the end of September, down from 84 funds in the preceding quarter.
On November 22, Loop Capital analyst Alan Gould assumed coverage of Comcast Corporation (NASDAQ:CMCSA) and lowered the price target to $67 from $71, and kept a Buy rating on the shares.
Here is what ClearBridge Investments has to say about Comcast Corporation (NASDAQ:CMCSA) in its Q2 2021 investor letter:
“We funded the shift primarily with trims in Comcast following big gains in this name. Comcast is a long-term holding that has been and remains a core holding. During the quarter, however, we took gains and resized the positions to reflect their current risk-reward post strong increases in the stocks.
Comcast, like Blackstone, has been a meaningful long-term holding whose stock performance has at times lagged its robust fundamental performance. Over the last nine months the stock price caught up some with the fundamentals and looked like it had more room to run. Our thesis on the name evolved, however, following the May 17 announcement that competitor Discovery was merging its operations with Time Warner. This deal positions the new company as a credible competitor to Netflix, Amazon Prime, Hulu and Disney, and results in Comcast being left without the proverbial dance partner in the evolving pay TV/DTC landscape. While we continue to believe Comcast’s cable systems business is well-positioned and that NBCUniversal remains valuable, the competitive dynamic for NBCUniversal has stiffened. Our reduced position size reflects both our continued enthusiasm for many parts of the franchise and emerging concerns given the evolving pay TV/DTC landscape.”
3. McDonald’s Corporation (NYSE:MCD)
Viking Global’s Stake Value: $720,994,000
Percentage of Viking Global’s 13F Portfolio: 2.00%
Number of Hedge Fund Holders: 58
McDonald’s Corporation (NYSE:MCD) is an American fast food company that operates in over 100 countries, serving millions of customers daily. In Q3 2021, Andreas Halvorsen acquired 2.99 million McDonald’s Corporation (NYSE:MCD) shares, valued at almost $721 million, representing 2% of his total investments.
McDonald’s Corporation (NYSE:MCD) announced Q3 results on October 27, posting an EPS of $2.76, beating estimates by $0.29. The $6.20 billion quarterly revenue was up 14.46% from the prior-year quarter, surpassing estimates by $158.29 million.
After the strong Q3 results, Credit Suisse analyst Lauren Silberman on October 28 raised the price target on McDonald’s Corporation (NYSE:MCD) to $281 from $271 and kept an Outperform rating on the shares.
One of the leading McDonald’s Corporation (NYSE:MCD) stakeholders from Q3 is Ray Dalio’s Bridgewater Associates, holding 1.45 million shares worth $351.6 million. Overall, 58 hedge funds reported owning stakes in McDonald’s Corporation (NYSE:MCD) at September end, valued at $3.33 billion.
2. General Electric Company (NYSE:GE)
Viking Global’s Stake Value: $1,743,649,000
Percentage of Viking Global’s 13F Portfolio: 4.83%
Number of Hedge Fund Holders: 53
General Electric Company (NYSE:GE) is a multinational American conglomerate operating in four main business segments, including aviation, power, renewable energy, and the digital industry. Viking Global assumed a position in General Electric Company (NYSE:GE) in the third quarter, with almost 17 million shares worth $1.74 billion. The stock accounts for 4.83% of the total Q3 investments of Halvorsen’s hedge fund.
General Electric Company (NYSE:GE) announced on October 26 its earnings for the quarter ending September 30. EPS in the period totaled $0.57, beating estimates by $0.13. The revenue equaled $18.43 billion, down 5.09% year-over-year, missing estimates by $745.06 million.
Morgan Stanley analyst Joshua Pokrzywinski on November 23 resumed coverage of General Electric Company (NYSE:GE) with an Overweight rating and a $125 price target, citing a good risk/reward combination and better catalysts for the company in the coming year.
Pzena Investment Management is one of the leading General Electric Company (NYSE:GE) stakeholders from Q3 2021, with a position worth over $1 billion in the company. Overall, a total of 53 hedge funds were bullish on General Electric Company (NYSE:GE) at the end of the third quarter, down from 67 funds in the preceding quarter. The total stakes held by hedge funds in Q3 equaled $6.24 billion.
Here is what Vulcan Value Partners has to say about General Electric Company (NYSE:GE) in its Q3 2021 investor letter:
“During the quarter, we sold our positions in General Electric Co. General Electric is a company we followed for a long time. In the past, we removed GE from the MVP list due to management’s poor capital allocation decisions which resulted in value instability. Larry Culp, the former CEO of Danaher, became CEO of General Electric in 2018. The company implemented a vast restructuring program to simplify the industrial side of its business, sold off non-core assets, paid down debt with the proceeds, and drastically shrunk GE Capital. These restructuring activities allowed its world-class jet engine and healthcare businesses to shine through, and improved value stability. As a result, we added the company back to the MVP list. While the pandemic negatively impacted General Electric’s aviation business in the short run, it also gave us the opportunity to buy General Electric in the second quarter of 2020 with a substantial margin of safety. GE is a good example of a competitively entrenched, yet slower growing MVP business. As its stock price rose rapidly over the last year, its value growth did not keep up, and the price to value gap closed quickly. As our margin of safety diminished, we sold our position in GE and allocated to more discounted companies.”
1. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Viking Global’s Stake Value: $3,511,109,000
Percentage of Viking Global’s 13F Portfolio: 9.74%
Number of Hedge Fund Holders: 32
Andreas Halvorsen, via Viking Global, purchased almost 303 million shares in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) in the third quarter, making the new stock addition the largest holding in the hedge fund’s portfolio. Halvorsen’s $3.51 billion stake in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) accounts for 9.74% of his total Q3 investments.
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a Massachusetts-based biotechnology company engaged in genetics engineering, producing bacteria with industrial applications.
On November 29, Jefferies analyst Laurence Alexander initiated coverage of Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) with a Buy rating and a $16 price target, stating that he expects the company to monetize the value of its programs through a mix of royalties, license payments, and equity share, resulting in forecasted free cash flow turning positive in 2025.
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) posted Q3 results on November 15, with EPS in the period equaling -$0.08, missing estimates by -$0.05. Revenue for the quarter totaled $77.61 million, outperforming estimates by $31.61 million.
Of the 867 hedge funds monitored by Insider Monkey in Q3 2021, 32 funds reported owning stakes in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA), worth $5.69 billion.
You can also take a look at Japanese Billionaire Masayoshi Son’s Investments: Top 10 Stock Picks and Bill Gates Portfolio: Most Recent Investments.
