In this article, we discuss 10 stocks that billionaire Andreas Halvorsen is selling. If you want to skip our detailed analysis of these stocks, go directly to Billionaire Andreas Halvorsen Is Selling These 5 Stocks.
Ole Andreas Halvorsen is a Norwegian billionaire investor who founded Viking Global, a Connecticut-based hedge fund, in 1999. After graduating from Stanford University in 1990 with an MBA, Andreas Halvorsen worked at Morgan Stanley (NYSE:MS) and Julian Robertson’s Tiger Management, before co-founding Viking Global with Brian Olson and David Ott.
Viking Global’s 13F portfolio is worth $34.4 billion according to the latest regulatory filings for the fourth quarter of 2021, with the fund’s investments focused in the industrial, healthcare, information technology, finance, consumer discretionary, and communications sectors.
In Q4 2021, Viking Global purchased 27 new stocks, bought additional stakes in 26 companies, sold out of 16 equities, and reduced its holdings in 38 securities. The fund’s top buys for the period included Twilio Inc. (NYSE:TWLO), Boston Scientific Corporation (NYSE:BSX), and Workday, Inc. (NASDAQ:WDAY), whereas Viking Global reduced its holdings in McDonald’s Corporation (NYSE:MCD), Fidelity National Information Services, Inc. (NYSE:FIS), and Peloton Interactive, Inc. (NASDAQ:PTON).
The most notable stocks in the fourth quarter portfolio of Andreas Halvorsen’s Viking Global included Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Visa Inc. (NYSE:V).
Ole Andreas Halvorsen of Viking Global
Our Methodology
We used the Q4 2021 portfolio of Andreas Halvorsen’s Viking Global for this analysis, selecting the 10 most notable stocks the billionaire sold in the period. We ranked the securities according to the hedge fund sentiment around the holdings. All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q4 2021 reporting period.
Billionaire Andreas Halvorsen Is Selling These Stocks
10. Ingersoll Rand Inc. (NYSE:IR)
Number of Hedge Fund Holders: 33
Ingersoll Rand Inc. (NYSE:IR) is a multinational company manufacturing diversified machinery and industrial solutions. The company specializes in producing compressors, vacuums, specialized gas and fluid management systems, precision pumps, power tools, and lifting equipment.
Andreas Halvorsen first purchased shares of Ingersoll Rand Inc. (NYSE:IR) in Q1 2020, and by the third quarter of 2021, the billionaire held 3.6 million shares of the company worth $183.5 million. In Q4 2021, he discarded his stake in Ingersoll Rand Inc. (NYSE:IR) entirely.
On February 2, Ingersoll Rand Inc. (NYSE:IR) acquired Houdstermaatschappij Jorc, a Netherlands-based manufacturer of condensate management products, for an all-cash purchase price of €27 million ($30.17 million). Jorc will join the Industrial Technologies and Services segment of Ingersoll Rand Inc. (NYSE:IR).
Baird analyst Michael Halloran lowered his price target on Ingersoll Rand Inc. (NYSE:IR) to $64 from $68 and kept an ‘Outperform’ rating on the shares on January 20, citing the significant internal transformation at the company, an underappreciated growth profile, important margin levers, and capital deployment opportunities.
In Q3 2021, 33 hedge funds held bullish positions in Ingersoll Rand Inc. (NYSE:IR), with stakes valued at $732.8 million, compared to 31 funds in the quarter earlier, holding stakes in Ingersoll Rand Inc. (NYSE:IR) worth $873.4 million. Durable Capital Partners held a leading stake in Ingersoll Rand Inc. (NYSE:IR) in the third quarter of 2021, with 5.4 million shares worth $273.49 million.
Here is what Artisan Global Discovery Fund had to say about Ingersoll Rand Inc. (NYSE:IR) in its Q3 2021 investor letter:
“We also added to Ingersoll Rand. Ingersoll Rand is a global market leader with a broad range of mission-critical flow creation technologies (pumps, compressors, etc.) for industrial and medical applications. Over the past several years, a new management team has repositioned the company toward less cyclical, more profitable businesses, which are supported by a stronger culture of employee engagement and continuous improvement. More recently, the company’s top-line growth has accelerated as the pandemic fades, and margins are benefiting from cost synergies achieved in its merger integration with Gardner Denver (with further runway ahead). This has boosted cash flows and enabled management to resume its successful bolt-on acquisition strategy, acquiring Seepex GmbH, a global leader in positive displacement pumps for end markets such as water, wastewater, food and beverage and chemicals, in Q2. With an increasingly visible organic and acquisition-driven growth capability, characteristics the market appears to be undervaluing, we added to our position at an attractive discount to our PMV estimate.”
9. Bilibili Inc. (NASDAQ:BILI)
Number of Hedge Fund Holders: 35
Bilibili Inc. (NASDAQ:BILI) is a Shanghai-based video sharing website featuring user generated content, and over time the Chinese company evolved into a cloud-based streaming platform with critically acclaimed films and television shows.
Andreas Halvorsen, via Viking Global, acquired a stake in Bilibili Inc. (NASDAQ:BILI) in Q4 2020, and by the third quarter of 2021, the hedge fund held a $36.2 million position in the company. In Q4 2021, Halvorsen discarded his shares of Bilibili Inc. (NASDAQ:BILI) entirely.
Barclays analyst Jiong Shao initiated coverage of Bilibili Inc. (NASDAQ:BILI) on February 8 with an ‘Equal Weight’ rating and a $32 price target. The “rapid growth” of paying members is a validation of Bilibili Inc. (NASDAQ:BILI)’s content strength and market positioning, the analyst told investors in a research note. Shao, however, considers competition the biggest risk to the Bilibili Inc. (NASDAQ:BILI) story.
According to the Q3 database of Insider Monkey, 35 hedge funds were bullish on Bilibili Inc. (NASDAQ:BILI), down from 47 funds in the quarter earlier. Stephen Mandel’s Lone Pine Capital held the biggest stake in Bilibili Inc. (NASDAQ:BILI) as of September 2021, with 8.6 million shares worth approximately $570 million.
Andreas Halvorsen dumped Bilibili Inc. (NASDAQ:BILI) shares in Q4 2021, unlike Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Visa Inc. (NYSE:V), which still make up a significant portion of his portfolio.
Here is what Tao Value had to say about Bilibili Inc. (NASDAQ:BILI) in its Q3 2021 investor letter:
“As witnessed in the past quarter, the government intervention in the Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We also exited Bilibili (ticker: BILI), given its priced-in valuation in the context of Chinese ADR confidence loss.”
8. Canadian Pacific Railway Limited (NYSE:CP)
Number of Hedge Fund Holders: 38
Viking Global started building a position in Canadian Pacific Railway Limited (NYSE:CP), a freight railway company operating in the United States and Canada, back in Q4 2013. The hedge fund sold out of its Canadian Pacific Railway Limited (NYSE:CP) stake in Q3 2018, before repurchasing shares the following quarter. Similarly, after discarding its stake in Q1 2019, Viking Global acquired a $224.3 million position in Canadian Pacific Railway Limited (NYSE:CP) in Q3 2021, only to dispose of it entirely in the fourth quarter of 2021.
On January 27, Canadian Pacific Railway Limited (NYSE:CP) reported its Q4 earnings, posting EPS of $0.75, missing consensus estimates by $0.01. Its revenue for the period was $1.60 billion, surpassing estimates by $17.41 million.
Desjardins analyst Benoit Poirier lifted his price target on Canadian Pacific Railway Limited (NYSE:CP) to C$114 ($88.97) from C$113 ($88.19) on January 31 and kept a ‘Buy’ rating on the shares.
Canadian Pacific Railway Limited (NYSE:CP) declared a C$0.19 ($0.15) per share quarterly dividend on January 27, in line with its previous payout. The dividend is payable on April 25, to shareholders of record on March 25.
TCI Fund Management held the largest stake in Canadian Pacific Railway Limited (NYSE:CP) in Q3 2021, with 55.8 million shares worth $3.6 billion. Overall, 38 hedge funds were bullish on the stock in the third quarter of 2021.
Here is what ClearBridge International Growth EAFE Strategy had to say about Canadian Pacific Railway Limited (NYSE:CP) in its Q3 2021 investor letter:
“The other major headwind to relative performance in the quarter was Canadian Pacific Railway. The stock has been a strong performer for the Strategy but negative sentiment around its bidding war for U.S. rail operator Kansas City Southern has weighed on the stock since late May. As a result, the cyclical uptick we expected from the company has been masked by the takeover. Indeed, we have been frustrated by the muted performance among Canadian Pacific and other recently added positions in our structural bucket of growth companies with more cyclical business models or that are undergoing a restructuring that should lead to a step change improvement in earnings. As more regions reopen from COVID-19 and spending rebounds, we expect better performance from our structural names, including Airbus and hospitality and food service provider Compass.”
7. Illumina, Inc. (NASDAQ:ILMN)
Number of Hedge Fund Holders: 55
Illumina, Inc. (NASDAQ:ILMN) is a biotechnology company that serves the sequencing, genotyping, gene expression, and proteomics markets with its products and services. Viking Global initially invested in Illumina, Inc. (NASDAQ:ILMN) in Q1 2012, and has disposed of the shares completely a few times over the years. The hedge fund exited its position in Illumina, Inc. (NASDAQ:ILMN) entirely in the fourth quarter of 2021, discarding 155,319 shares.
Publishing its Q4 results on February 10, Illumina, Inc. (NASDAQ:ILMN) posted earnings per share of $0.75, topping estimates by $0.26. Revenue for the quarter jumped 25.71% year-on-year to $1.20 billion, exceeding estimates by $76.17 million.
On February 15, Piper Sandler analyst David Westenberg raised his price target on Illumina, Inc. (NASDAQ:ILMN) to $460 from $450 and reiterated an ‘Overweight’ rating on the shares. The earnings call further validated the company’s competitive position and the analyst sees a good setup for 2022 with the stock’s recent selloff.
According to the Q3 database of Insider Monkey, 55 hedge funds held bullish positions in Illumina, Inc. (NASDAQ:ILMN), up from 51 funds in the preceding quarter. GuardCap Asset Management, the largest Illumina, Inc. (NASDAQ:ILMN) shareholder, owned a $534 million stake in the company in the third quarter of 2021.
Here is what Ensemble Capital Management had to say about Illumina, Inc. (NASDAQ:ILMN) in its Q4 2021 investor letter:
“Notable detractors from our performance during the fourth quarter came from our investments in Illumina. Illumina continued to underperform the market for two reasons in our view despite strong fundamentals with revenue growth expected to come in at 40% in 2021 and 17% in 2022. The first is continued uncertainty by the market on regulatory acceptance of the GRAIL acquisition which brings the most advanced and broadest 50 cancer screening tests via a single blood draw. The second headwind for the stock has been a market sentiment shift away from all things biotech, with indicators like the S&P Biotech Index down 11% in the quarter and poster child Moderna down 34%. Illumina’s stock was down 6% during the quarter.”
6. Zoom Video Communications, Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 56
Zoom Video Communications, Inc. (NASDAQ:ZM) is an American communications technology firm that has facilitated remote work, online education, and social events, especially during the COVID-19 pandemic. Zoom Video Communications, Inc. (NASDAQ:ZM) was a new arrival in Andreas Halvorsen’s Q3 2021 portfolio, with the billionaire buying 1.17 million shares worth $308.3 million, only to dump his stake entirely in Q4 2021.
Citic Securities analyst Junyun Chen initiated coverage of Zoom Video Communications, Inc. (NASDAQ:ZM) on December 30 with a ‘Buy’ rating and a $260 price target. Zoom Video Communications, Inc. (NASDAQ:ZM)’s stock price has fallen by two-thirds from its peak of last October, mainly due to market concerns about the decline in revenue growth after the pandemic, the loss of small and medium-sized business customers, and competition from Microsoft Teams, according to the analyst. However, he believes the global video conferencing market “maintains a high degree of prosperity” and that despite the competition, Zoom Video Communications, Inc. (NASDAQ:ZM) maintains a “solid leading position.”
Tiger Global Management held the biggest stake in Zoom Video Communications, Inc. (NASDAQ:ZM) in Q3 2021, with 4.76 million shares worth $1.24 billion. Overall, 56 hedge funds were bullish on the stock in the third quarter of 2021, down from 59 funds in the quarter earlier.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Visa Inc. (NYSE:V), hedge funds were big fans of Zoom Video Communications, Inc. (NASDAQ:ZM) in 2021.
Here is what Artisan Partners had to say about Zoom Video Communications, Inc. (NASDAQ:ZM) in its Q1 2021 investor letter:
“We concluded our campaigns in Zoom Video Communications. We have been paring our position in Zoom for several quarters, anticipating the reduced need for video conferencing as vaccination rates climb and people return to their workplaces. That said, we believe there is a strong case to be made that the pandemic has prompted a permanent inflection in video conferencing’s importance—sustainably higher remote work arrangements, more online learning and less business travel. Furthermore, the company’s dramatically expanded user base (up 485% YoY in Q3) positions it well to cross sell additional services, Zoom Phone in particular. The long-term future remains bright, but we decided to end our successful investment campaign in favor of opportunities in our pipeline with more attractive near-term growth prospects.”
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Disclosure: None. Billionaire Andreas Halvorsen Is Selling These 10 Stocks is originally published on Insider Monkey.
