In this article, we discuss 5 new stock picks of billionaire Andreas Halvorsen’s Viking Global. If you want to see more stocks in this selection, click Billionaire Andreas Halvorsen’s Viking Global Portfolio: 10 New Stock Picks.
5. Anthem, Inc. (NYSE:ANTM)
Number of Hedge Fund Holders: 69
Anthem, Inc. (NYSE:ANTM) operates as a health benefits company in the United States. It operates through four segments – Commercial & Specialty Business, Government Business, IngenioRx, and Other. Securities filings for Q1 2022 reveal that Andreas Halvorsen’s Viking Global acquired 140,895 shares of Anthem, Inc. (NYSE:ANTM), worth $69.2 million.
On April 20, Anthem, Inc. (NYSE:ANTM) declared a $1.28 per share quarterly dividend, in line with previous. The dividend is payable on June 24, to shareholders of record on June 10. The company also posted a Q1 EPS of $8.25 and a revenue of $37.89 billion, outperforming Street forecasts by $0.42 and $582.73 million, respectively.
Bernstein analyst Lance Wilkes on May 27 resumed coverage of Anthem, Inc. (NYSE:ANTM) with an Outperform rating and a price target of $596, up from $577, saying he is positive on the Healthcare Services group and sees it positioned to perform well in an inflationary backdrop. For Anthem, Inc. (NYSE:ANTM), the analyst cited strategic growth due to its market leading position in his Medicare Advantage and Individual coverage.
Among the hedge funds tracked by Insider Monkey, Anthem, Inc. (NYSE:ANTM) was part of 69 public stock portfolios at the end of Q1 2022, up from 63 funds in the earlier quarter. Boykin Curry’s Eagle Capital Management is the largest shareholder of the company, with 2.3 million shares worth $1.16 billion.
Here is what ClearBridge Investments Large Cap Value Strategy has to say about Anthem, Inc. (NYSE:ANTM) in its Q4 2021 investor letter:
“The quarter also saw strong showings from Anthem; has been operating well and is a key player in the evolution of health care insurance and delivery, providing more integrated and cost-effective solutions and receiving a tailwind from an aging population. The company tends to be volatile based on changes in medical loss ratios (MLR), though we view this volatility as a short term for business models that are able to reprice policies relatively quickly. We added significantly to the position during the year.”
4. MetLife, Inc. (NYSE:MET)
Number of Hedge Fund Holders: 39
MetLife, Inc. (NYSE:MET) is a New York-based provider of insurance, annuities, employee benefits, and asset management services worldwide. Billionaire Andreas Halvorsen’s Viking Global added MetLife, Inc. (NYSE:MET) to its Q1 portfolio by acquiring 1.3 million shares worth $95.7 million.
On May 4, MetLife, Inc. (NYSE:MET) announced that its board of directors approved a new $3 billion authorization for the company to repurchase its common stock. The new authorization is in addition to the $475 million remaining under the company’s last buyback program announced in August 2021. Citi analyst Michael Ward on May 23 initiated coverage of MetLife, Inc. (NYSE:MET) with a Buy rating and a $77 price target.
MetLife, Inc. (NYSE:MET) posted earnings for Q1 2022 on May 4, reporting an EPS of $2.08, beating consensus estimates by $0.45. Revenue for the period came in at $17.72 billion, topping analysts’ predictions by $918.12 million.
According to Insider Monkey’s Q1 data, 39 hedge funds were bullish on MetLife, Inc. (NYSE:MET), up from 36 funds in the prior quarter. Richard S. Pzena’s Pzena Investment Management is the leading shareholder of the company, with 5.11 million shares worth over $359 million.
3. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 136
Mastercard Incorporated (NYSE:MA) is an American financial technology firm that provides transaction processing and other payment-related products and services worldwide. Andreas Halvorsen added Mastercard Incorporated (NYSE:MA) to his portfolio in the first quarter of 2022, buying about 1.8 million shares worth almost $641 million.
On April 28, Mastercard Incorporated (NYSE:MA) reported its Q1 results, announcing earnings per share of $2.76, beating market estimates by $0.60. The revenue grew 24.36% year-over-year to $5.17 billion, exceeding analysts’ predictions by $267.59 million.
Goldman Sachs analyst Will Nance on May 17 initiated coverage of Mastercard Incorporated (NYSE:MA) with a Buy rating and a $460 price target, which implies 38% upside. He believes Mastercard Incorporated (NYSE:MA) will continue to deliver “best-in-class” earnings growth, on the back of “strong secular tailwinds, and strong operating leverage as the company continues to add scale”.
Charles Akre’s Akre Capital Management held the largest stake in Mastercard Incorporated (NYSE:MA) during Q1 2022, consisting of 5.85 million shares worth over $2 billion. Overall, 136 hedge funds were bullish on Mastercard Incorporated (NYSE:MA) at the end of March 2022.
Here is what Saturna Capital Amana Funds has to say about Mastercard Incorporated (NYSE:MA) in its Q4 2021 investor letter:
“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. We sold our position in Mastercard. Although Mastercard does not charge or collect interest, its association with credit activities was problematic.”
2. XP Inc. (NASDAQ:XP)
Number of Hedge Fund Holders: 31
XP Inc. (NASDAQ:XP) is a Brazilian company that offers financial products and services. XP Inc. (NASDAQ:XP) is a new arrival in billionaire Andreas Halvorsen’s Q1 portfolio. His hedge fund purchased 9.4 million shares of the company, worth $284.2 million.
On May 11, XP Inc. (NASDAQ:XP) announced a share repurchase program under which the company may buy back up to R$1.0 billion of its outstanding Class A common shares in the open market, beginning on May 12, 2022 and continuing until either the completion of the repurchase or May 12 2023.
Citi analyst Gabriel Gusan on May 9 upgraded XP Inc. (NASDAQ:XP) to Buy from Neutral with a price target of $26, down from $31, observing indications that its key performance indicators may have bottomed and what he calls an “appealing valuation” with shares down 53% over the last year.
According to Insider Monkey’s Q1 data, 31 hedge funds were bullish on XP Inc. (NASDAQ:XP), compared to 33 funds in the earlier quarter. Henry Ellenbogen’s Durable Capital Partners is a significant shareholder of the company, with 4.50 million shares worth $135.58 million.
Here is what Harding Loevner Emerging Markets Equity Fund has to say about XP Inc. (NASDAQ:XP) in its Q4 2021 investor letter:
“Shares of another new Brazilian holding, XP, the country’s premier online investment platform, also sold off as tough economic conditions outweighed management’s optimism about prospective growth from new business lines in pensions, credit cards, and loans. Performance was helped by stock selection and our underweight in China.”
1. Otis Worldwide Corporation (NYSE:OTIS)
Number of Hedge Fund Holders: 43
Otis Worldwide Corporation (NYSE:OTIS) manufactures, installs, and services elevators and escalators in the United States, China, and internationally. Billionaire Andreas Halvorsen added Otis Worldwide Corporation (NYSE:OTIS) to his Q1 portfolio by purchasing 3.5 million shares worth $272.2 million, representing 1.10% of the total 13F holdings.
On May 24, Barclays analyst Julian Mitchell upgraded Otis Worldwide Corporation (NYSE:OTIS) to Overweight from Equal Weight with a price target of $82, up from $80. The analyst is changing preferences in the multi-industry sector and observed that Otis Worldwide Corporation (NYSE:OTIS) counts among the most attractive stocks in case of a recession.
According to Insider Monkey’s database, 43 hedge funds were bullish on Otis Worldwide Corporation (NYSE:OTIS) at the end of March 2022, compared to 38 funds in the last quarter. Alkeon Capital Management is a notable shareholder of the company, with 4.25 million shares worth over $128 million.
Here is what VGI Partners has to say about Otis Worldwide Corporation (NYSE:OTIS) in its Q4 2021 investor letter:
“We also exited some core holdings during the year. We sold our OTIS position, which has been a strong performer but decided to exit based on valuation coupled with a deteriorating outlook for construction in China. China represents almost 20% of OTIS revenue but an even higher proportion of future growth; in recent months we have started to see some of these concerns play out with multiple signs pointing to a prolonged slowdown in China property construction.”
Click to continue reading and see Top 9 Stocks Billionaire Larry Robbins Just Added to His Portfolio and 10 Consumer Technology Stocks to Invest In According to Ken Fisher’s Fisher Asset Management.
