Billionaire Andreas Halvorsen’s Top Long-Term Holdings

#3 LyondellBasell Industries NV (NYSE:LYB)

 – Shares Owned by Viking Global (as of December 31): 9.33 million

 – Value of Holding (as of December 31): $810.61 million

Viking Global has been an investor in LyondellBasell Industries NV (NYSE:LYB) since the fourth quarter of 2010, when the company was first listed on the NYSE. The company has generated significant returns for its shareholders since then, with its shares having gained over 220%. While Viking Global reduced its stake in the company by 31% during the fourth quarter, Brazilian billionaire Jorge Paulo Lemann‘s 3G Capital increased its stake in the company by 40% during that time. Analysts who track LyondellBasell Industries NV (NYSE:LYB) feel that the stock has little downside risk because it trades at a trailing P/E ratio of 8.96, well below the chemical industry average of 20.78, and sports a respectable annual dividend yield of 3.63%. For its first quarter of fiscal year 2016, analysts project the company to report EPS of $2.26 on revenue of $7.00 billion, considerably lower than the EPS of $2.54 on revenue of $8.19 billion it reported for the same quarter of the previous financial year.

#2 Walgreens Boots Alliance Inc (NASDAQ:WBA)

 – Shares Owned by Viking Global (as of December 31): 12.77 million

 – Value of Holding (as of December 31): $1.08 billion

While Viking Global has held a stake in Walgreens Boots Alliance Inc (NASDAQ:WBA) since the fourth quarter of 2013, it perhaps doesn’t feel that acquiring rival Rite Aid Corporation (NYSE:RAD) will add much value to the company. During the fourth quarter of 2015, when Walgreens Boots Alliance Inc (NASDAQ:WBA) announced its decision to acquire Rite Aid Corporation (NYSE:RAD) for $9 per share, Viking Global reduced its stake in Walgreens by 45%. On March 16, Credit Suisse analyst Robert Willoughby released a note to his clients in which he issued an ‘Outperform’ rating on Rite Aid Corporation’s stock with a $9 price target and noted:

“If Rite Aid held its current Enterprise value/EBITDA multiple while applying free cash flow to debt reduction, a pathway to a higher equity valuation is apparent. Our target price is based on the assumption that it can trade at a higher multiple of 10.5x, which equates to the Walgreens Boots Alliance offer price.”

He also suggested that in spite of the regulatory hurdles the Walgreens-Rite Aid merger will face, “The deal is trading at a roughly 75% implied probability of success assuming a downside risk of $4.65 per share. The Credit Suisse Special Situations Desk believes odds of the deal’s success are approximately 85%.” Daniel S. Och’s OZ Management also reduced its stake in Walgreens during the fourth quarter, by 46%. The billionaire’s firm held 5.36 million shares of the company on December 31.

#1 Allergan plc Ordinary Shares (NYSE:AGN)

 – Shares Owned by Viking Global (as of December 31): 5.98 million

 – Value of Holding (as of December 31): $1.87 billion

Viking Global cut its holding in Allergan plc Ordinary Shares (NYSE:AGN) by 17% during the fourth quarter, relegating the company, which has been in its portfolio since the second quarter of 2013, to the second spot in said equity portfolio as of the end of December. Shares of Allergan plc Ordinary Shares (NYSE:AGN) have fallen by nearly 15% since November 24 when Pfizer Inc. (NYSE:PFE) announced that it will be acquiring the company for $160 billion. Since the Pfizer deal implies a value of $340 per Allergan shares and the recent decline has increased the spread between Allergan’s stock price and the implied value, analysts feel that the stock represents a low-risk, high-reward opportunity for investors. The 17 prominent analysts on Wall Street who track Allergan have an average rating of ‘Buy’ and an average price target of $358.79 on the stock. Eric Mindich‘s Eton Park Capital was one of the hedge funds which initiated a stake in the company during the fourth quarter, purchasing 948,569 shares of Allergan during that period.

Disclosure: None