Here’s How Andreas Halvorsen’s Viking Global Managed A Terrific Q4

#2 Walgreens Boots Alliance Inc (NASDAQ:WBA)

– Shares Owned by Viking Global (as of September 30): 23.27 million

– Value of Holding (as of September 30): $1.93 billion

Despite the fact that its shares inched up by 2.4% during the fourth quarter, Walgreens Boots Alliance Inc (NASDAQ:WBA) is the worst performer among Halvorsen’s top five picks. Though shares of Walgreens Boots Alliance Inc (NASDAQ:WBA) shot up significantly after the company announced, on October 27, that it would be acquiring smaller rival Rite Aid Corporation (NYSE:RAD) for $9.4 billion, it was only a momentary spike and the shares quickly came down in the days following the announcement.

On January 7, Walgreens Boots Alliance announced its results for the first quarter of fiscal 2016, declaring EPS of $1.03 on revenue of $29 billion, whereas analysts had expected the company to report EPS of $0.96 on revenue of $29.24 billion. The company also raised the bottom-end of its full-year earnings forecast and now expects adjusted earnings to be in the range of $4.30 to $4.55 per share. Following the earnings release, several analysts who cover the stock reiterated their ratings. Among them were analysts at FBR & Co., who have a ‘Market Perform’ rating and $90 price target.

Although the Walgreens – Rite Aid merger was announced in October, it seems several funds, especially event-driven hedge funds were expecting a positive development. During the third quarter, the number of funds with shares of Walgreens Boots Alliance (among the funds covered by us) increased by 10 to 91. Among the funds that initiated a stake in the company during the third quarter was billionaire Leon Cooperman‘s Omega Advisors, which bought nearly 1 million shares of the company.