In this article, we discuss the top 15 long-term stock picks of billionaire Andreas Halvorsen.
Andreas Halvorsen is a prominent Norwegian hedge fund manager and the co-founder of Viking Global, one of the most successful equity-focused hedge funds in the world. Known for his disciplined investment approach and ability to identify long-term opportunities, Halvorsen has built a reputation as a leader in the financial industry. Halvorsen was born in 1961 in Norway. He attended the Norwegian Naval Academy, where he developed a strong work ethic, leadership skills, and a disciplined mindset. After completing his military service, Halvorsen decided to pursue a career in finance. He enrolled at Williams College, a prestigious liberal arts institution in the United States, and graduated with a degree in economics. Halvorsen later attended the Stanford Graduate School of Business, earning his MBA in 1990.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
After graduating from Stanford, Halvorsen began his career at Morgan Stanley, where he worked in the investment banking division. He later joined Tiger Management, the legendary hedge fund founded by Julian Robertson. Halvorsen became one of Robertson’s top protégés, earning the title of a Tiger Cub. At Tiger Management, Halvorsen gained valuable experience analyzing global markets, identifying undervalued equities, and managing risk. This experience laid the foundation for his future success. In 1999, Halvorsen co-founded Viking Global Investors alongside two other Tiger alumni, David Ott and Brian Olson.
The firm, based in Greenwich, Connecticut, focuses on long/short equity strategies, aiming to generate returns through a combination of long-term investments in undervalued companies and short positions in overvalued ones. Viking Global quickly gained a reputation for its rigorous research, disciplined investment process, and focus on high-quality companies. Halvorsen’s leadership has been instrumental in the firm’s success. Viking Global manages approximately $27 billion in 13F securities as of the end of the third quarter of 2023. It has delivered annualized returns exceeding 10% since its inception, consistently outperforming benchmarks.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected stocks by combing through the 13F portfolio of Viking Global at the end of the third quarter of 2024. Only the companies that have been in the 13F portfolio of the fund consistently for the past three years were selected. These stocks are also popular among other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Andreas Halvorsen of Viking Global
Billionaire Andreas Halvorsen’s Top 15 Long-Term Stock Picks
15. Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN)
Number of Hedge Fund Holders: 34
Viking Global’s Stake: $35.6 million
Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) is a clinical-stage biopharmaceutical company developing targeted therapies that deliver to unmet medical needs. The following factors make the company a prime candidate for investment. Firstly, the impressive financial growth depicted in the report for the third quarter of 2024 may attract investors. For instance, strong growth in OJEMDA net revenue, with $20.1 million in the third quarter of 2024, represented a 145% increase over the second quarter of 2024. This shows the product’s commercial success and its potential to become a significant revenue contributor for the company. Additionally, quarterly prescriptions (TRx) grew to 619 in the third quarter of 2024, representing a 159% increase over the second quarter of 2024. This reflects effective marketing efforts and the strong clinical performance of the company. Secondly, Day One and Ipsen entered into an exclusive licensing agreement to commercialize sorafenib outside of the US. Under the agreement, Day One received approximately $111 million upfront in cash and equity investment at a premium with up to approximately $350 million in additional launch and sales milestone payments as well as tiered double-digit royalties starting at mid-teens percentage on net sales.
14. Edgewise Therapeutics, Inc. (NASDAQ:EWTX)
Number of Hedge Fund Holders: 41
Viking Global’s Stake: $39.5 million
Edgewise Therapeutics, Inc. (NASDAQ:EWTX) is a clinical-stage biopharmaceutical company focused on the discovery, development, and commercialization of innovative treatments for severe, rare neuromuscular and cardiac disorders for which there is a significant unmet medical need. These factors underscore why the company is a solid investment opportunity. Firstly, as per the report of the third quarter of 2024, Edgewise Therapeutics has demonstrated a robust strategy by securing substantial capital to support its ongoing programs. The $232 million raised in early 2024 provides a solid foundation for advancing muscular dystrophy and cardiovascular initiatives. However, the company’s reliance on the success of its key drug candidates, sevasemten and EDG-7500, underscores the importance of continued positive trial outcomes to maintain investor confidence and drive future revenue streams. Secondly, the company has highlighted progress in its drug pipeline, especially the positive Phase 2 trial results for sevasemten in Becker muscular dystrophy and initial positive results from EDG-7500 in patients with obstructive hypertrophic cardiomyopathy.
13. Zai Lab Limited (NASDAQ:ZLAB)
Number of Hedge Fund Holders: 18
Viking Global’s Stake: $47 million
Zai Lab Limited (NASDAQ:ZLAB) is a commercial-stage biopharmaceutical company based in China and the US focused on bringing transformative medicines. The following aspects make the company an attractive prospect for investors. Firstly, the report for the third quarter showed great results, which may boost investors’ confidence in the company. For instance, the product revenue net was $101.8 million in the third quarter of 2024, compared to $69.2 million for the same period in 2023, representing 47% year-on-year growth. This increase was primarily driven by increased sales for VYVGART and was also supported by increased sales for ZEJULA and NUZYRA. In addition, research and development expenses were $66 million in the third quarter of 2024, compared to $58.8 million for the same period in 2023. This increase was primarily due to increased upfront and milestone fees for license and collaboration agreements. Secondly, Schrödinger and Zai Lab have announced a global R&D collaboration in Oncology, focused on a novel program in oncology targeting DNA damage response. This program may complement existing discovery efforts in the DNA damage response pathway in addition to potential combinatorial approaches within the pipeline, such as with the PARP inhibitor Zejula.
12. Pharvaris N.V. (NASDAQ:PHVS)
Number of Hedge Fund Holders: 15
Viking Global’s Stake: $67.7 million
Pharvaris N.V. (NASDAQ:PHVS) is a late-stage biopharma company developing novel, oral bradykinin B2 receptor antagonists to treat and prevent hereditary angioedema attacks. The following factors underscore why the company is a solid investment opportunity. First of all, in pharmaceuticals, increased R&D spending can lead to future innovation, growth, and competitive advantages, and the company’s R&D expenses have increased from €18.5 million to €25.8 million, indicating that it is investing more in developing new products or technologies. Secondly, the company has also planned the initiation of CHAPTER-3, the pivotal Phase 3 study of deucrictibant extended-release tablets for the prophylactic treatment of HAE. Additionally, it has also announced its intention to pursue clinical development of deucrictibant in a newly named indication, acquired angioedema due to C1-inhibitor deficiency (AAE-C1INH), and presented a robust data set highlighting the differentiating characteristics of deucrictibant.
11. Ameriprise Financial, Inc. (NYSE:AMP)
Number of Hedge Fund Holders: 34
Viking Global’s Stake: $114.2 million
Ameriprise Financial, Inc. (NYSE:AMP) is a diversified financial services company and bank holding company based in Minneapolis, Minnesota. The following aspects make the company an attractive prospect for investors. The first compelling factor is the positive financial growth depicted in the third quarter report of 2024. For instance, the adjusted operating earnings per diluted share increased 17% to $9.02, excluding unlocking and severance expenses associated with the company’s initiatives to enhance operational efficiency and effectiveness. Secondly, the company has announced a partnership with NeoGenomics. This partnership aims to expand access to personalized disease monitoring for blood cancer patients and use both companies’ expertise to enhance diagnostic capabilities and improve patient outcomes. Moreover, the company’s 2025 investment outlook also anticipates stable economic conditions in the US, contributing to continued growth in S&P 500 profits and opening doors to investment.
10. Adaptive Biotechnologies Corporation (NASDAQ:ADPT)
Number of Hedge Fund Holders: 19
Viking Global’s Stake: $153.6 million
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) is a commercial-stage company developing an immune medicine platform for the diagnosis and treatment of various diseases. The company stands out as a worthwhile investment due to these factors. Firstly, the reports of the third quarter of 2024 showed impressive results which holds great potential for investors. For instance, the company obtained an updated Medicare Clinical Laboratory Fee Schedule (CLFS) Gapfill Determination for clonoSEQ of $2,007 per test, a 17% increase from the previous implied rate under the episode structure. This increase could lead to higher repayment rates for the company, boosting revenue and profitability. Additionally, the company also received expanded Medicare coverage of clonoSEQ for assessing measurable residual disease in Mantle Cell Lymphoma. This may hold investment potential as the company’s products are influencing healthcare positively, which may impact patient adoption and market share. Secondly, Adaptive Biotechnologies Corporation and NeoGenomics have announced a multi-year exclusive strategic commercial collaboration that will advance minimal residual disease (MRD) monitoring options for patients with select blood cancers, which aims to empower oncologists and pathologists to deliver the highest quality patient care.
9. Acadia Healthcare Company, Inc. (NASDAQ:ACHC)
Number of Hedge Fund Holders: 43
Viking Global’s Stake: $234.7 million
Acadia Healthcare Company, Inc. (NASDAQ:ACHC)’s behavioral health treatment facilities specialize in helping children, teenagers, and adults who are suffering from mental health disorders. The following aspects make the company an attractive prospect for investors. The first compelling factor is the company’s great performance in the third quarter report of 2024. As per the report, the company delivered $250.4 million in total revenues, putting it on track to reach an impressive milestone of more than $1 billion in annualized sales in 2025, which reflects the success of the company’s two growing commercial franchises. Secondly, the company is expanding its bed capacity, adding approximately 1,200 new beds in 2024 and further investments in over 2,000 additional beds.
8. Royalty Pharma plc (NASDAQ:RPRX)
Number of Hedge Fund Holders: 33
Viking Global’s Stake: $342.1 million
Royalty Pharma plc (NASDAQ:RPRX) is a New York-based firm that operates in the pharma sector. The following factors make this company stand out as a worthwhile investment. Firstly, as per the report of the third quarter of 2024, the company delivered strong growth of approximately 15% in Portfolio Receipts and raised full-year guidance. Additionally, the company also strengthened its portfolio by adding royalties on three innovative therapies over the last three months, increasing Capital Deployment to approximately $1.2 billion in the third quarter and $2.6 billion year-to-date. Secondly, the company plans to become an integrated company by acquiring its external manager, RP Management, LLC. This simplified structure would benefit shareholders through strengthened shareholder alignment, enhanced governance and increased economic return on investments. Moreover, the board also authorized a $3 billion share repurchase program; $2 billion of shares are intended to be repurchased in 2025, subject to market conditions.
7. Roivant Sciences Ltd. (NASDAQ:ROIV)
Number of Hedge Fund Holders: 50
Viking Global’s Stake: $624.3 million
Roivant Sciences Ltd. (NASDAQ:ROIV) is an American multinational healthcare company focused on applying technology to drug development and building subsidiary life sciences and health technology companies. These key points underline why the company is a sound investment decision. To begin with, as the report of the third quarter of 2024 suggests, the company has completed the sale of Telavant to Roche for $7.1 billion with an additional $150 million in cash payable upon the completion of a near-term milestone. Secondly, the company has agreed to sell an aggregate of 22,500,000 shares of common stock at a purchase price of $20 per share to three institutional accredited investors in a private investment in public equity (PIPE). Immunovant anticipates receiving aggregate gross proceeds of approximately $450 million from the PIPE, which may attract investors. Moreover, the company has launched a new pipeline program, Mosliciguat, a potential first-in-class and best-in-category inhaled once-daily Soluble Guanylate Cyclase (sGC) activator.
6. BridgeBio Pharma, Inc. (NASDAQ:BBIO)
Number of Hedge Fund Holders: 46
Viking Global’s Stake: $639.6 million
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is a biotechnology company designing transformative medicines for patients with genetic diseases and cancers with clear genetic drivers. The following reasons highlight the company’s strength as an investment target. The first thing that makes Bridgebio Pharma a worthwhile investment is its exceptional financial growth in the third quarter of 2024. For instance, the company reported to have ended the quarter with $406 million in cash, cash equivalents, and short-term restricted cash. It anticipates receiving a $500 million milestone payment under a royalty funding agreement upon Food and Drug Association (FDA) approval of acoramidis, as well as $105 million in aggregate regulatory milestone payments upon approval of acoramidis in European and Japanese territories. Moreover, the company has secured up to $1.25 billion of capital from Blue Owl and CPP investments to accelerate the development and launch of genetic medicines.
5. BioMarin Pharmaceutical Inc. (NYSE:BMRN)
Number of Hedge Fund Holders: 54
Viking Global’s Stake: $685.6 million
BioMarin Pharmaceuticals Inc. (NYSE:BMRN) develops and commercializes therapies for people with serious and life-threatening rare diseases and medical conditions. The following highlights demonstrate why the company is a compelling investment opportunity. The first thing that makes this company worthy of investment is robust financial growth. For instance, as illustrated in the report of the third quarter of 2024, total revenues were $746 million, an increase of 28%, compared to the same period in 2023, driven by strong VOXZOGO contributions from new patient starts in all regions. This impressive growth is driven by the strategic and operational decisions the company has made over the last nine months, and is driving strong performance, reflected in year-over-year revenue growth in the third quarter of 28% and accelerated profitability. Secondly, the company plans to make changes to its ROCTAVIAN business to focus commercial operations in three markets, the United States, Germany and Italy, where the medicine is approved and reimbursed as a treatment for severe hemophilia A. By focusing commercial, research and manufacturing programs, BioMarin anticipates reducing annual direct ROCTAVIAN expenses to approximately $60 million, beginning in 2025.
4. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Viking Global’s Stake: $755.5 million
Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. This company is positioned as a lucrative investment for the following reasons. Firstly, the report for the third quarter of 2024 shows an appealing picture of positive financial growth. For instance, free cash flow less principal repayments of finance leases and financing obligations increased to $44.9 billion for the trailing twelve months, compared with $15.9 billion for the trailing twelve months ended September 30, 2023. It has announced plans to expand Amazon pharmacy’s same-day delivery of medications to nearly half the US in 2025 by accelerating the rollout of new pharmacies in 20 more US cities by the end of next year. Moreover, the company has launched new generative AI-powered features, including Rufus, a generative AI expert shopping assistant, becoming available in Canada, France, Germany, India, Italy, Spain, and the UK. In addition, the company has also introduced AI Shopping Guides, which simplifies product research by using generative AI to pair information about a product category with Amazon’s wide selection, making it easier for customers to find the right product for their needs.
3. APi Group Corporation (NYSE:APG)
Number of Hedge Fund Holders: 55
Viking Global’s Stake: $848.9 million
APi Group Corporation (NYSE:APG) provides safety, specialty, and industrial services. The following factors demonstrate the company’s promise as a solid investment. Firstly, the impressive financial position of the company may attract investors. As per the report of the third quarter of 2024, third-quarter net revenues were $1.8 billion, representing growth of 2.4% with double-digit inspection revenue growth in US Life Safety. It also recorded third-quarter net income of $69 million, representing year-over-year growth of 28%. Secondly, the company has planned to acquire Elevated Facility Services Group, a premier provider of contractually based services for all major brands of elevator and escalator equipment. Elevated will be acquired by APi from a fund managed by L Squared Capital Partners for approximately $570 million in cash, subject to working capital and other standard adjustments. This may hold an investment opportunity as this transaction will expand APi’s position as a premier provider of safety services focused on non-discretionary, regulatory-driven applications.
2. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 95
Viking Global’s Stake: $884.6 million
The Progressive Corporation (NYSE:PGR) is a company that provides personal and commercial automobile insurance and other specialty property-casualty insurance products and related services. The following factors make the company a prime candidate for investment. Firstly, as per the report of the third quarter of 2024, the Personal Lines side of the business recorded $16.3 billion in NPW, which represented 29% growth over the third quarter in the prior year, driven by more new applications, an increase in renewal customers, and higher average premiums written. The extraordinary new business growth during the quarter helped PIFs grow by over 1.4 million to end the quarter with 29.3 million PIFs, or 15% more than at the end of the third quarter last year. Secondly, the company is investing heavily in technology and data analytics to refine, improve risk assessment, and enhance customer experience by using telematics to monitor driving behavior, exemplifying the company’s commitment to innovation.
1. Fortive Corporation (NYSE:FTV)
Number of Hedge Fund Holders: 31
Viking Global’s Stake: $931.2 million
Fortive Corporation (NYSE:FTV) designs, develops, manufactures, and services professional and engineered products, software, and services in the United States, China, and internationally. The following factors demonstrate the company’s promise as a solid investment. To begin with, the report for the third quarter of 2024 shows a promising picture of the company’s financial growth. For instance, net earnings were $222 million, and for the same period, adjusted net earnings were $342 million. Diluted net earnings per share for the third quarter were $0.63. For the same period, adjusted diluted net earnings per share were $0.97. Secondly, the company also entered into a definitive agreement to acquire German manufacturer EA Elektro-Automatik Holdings GmbH for $1.45 billion in cash. Elektro-Automatik makes test solutions for energy storage, mobility, hydrogen, and renewable energy markets. This may open doors to investment as this deal is expected to strengthen Fortive’s position in the electronic test and measurement market. Moreover, the company has announced its intention to pursue a tax-free spin-off of its Precision Technologies segment, creating two independent publicly traded companies, each with focused business models and tailored investment and capital allocation strategies.
While we acknowledge the potential of Fortive Corporation (NYSE:FTV) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Fortive Corporation (NYSE:FTV) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
