In this article, we discuss Viking Global’s top 10 stocks. If you want to skip our detailed analysis of these stocks, go directly to Viking Global’s Top 5 Stocks.
Viking Global is a Connecticut-based investment management firm that utilizes fundamental analysis in selecting global investments across all industries including technology, services, healthcare, and financials. The hedge fund was co-founded and is managed by billionaire Norwegian investor Andreas Halvorsen. Before co-founding Viking Global in 1999, Halvorsen traded equities at Julian Robertson’s Tiger Management, where he rose to become one of the firm’s most successful proteges and was dubbed one of the “Tiger Cubs.” According to business publication firm Forbes, Andreas Halvorsen has a net worth of $6.3 billion as of February 8.
According to data from LCH Investments reported by Reuters, Halvorsen’s Viking Global Investors was among the best-performing hedge funds in 2020, earning $7 billion. However, the Connecticut-based firm’s hedge fund fell 4.5% in 2021 because it “underestimated the ongoing impact of Covid,” Andreas Halvorsen noted in a recent investor letter dated January 18. Peloton Interactive, Inc. (NASDAQ:PTON), Coupa Software Incorporated (NASDAQ:COUP), and Adaptive Biotechnologies Corporation (NASDAQ:ADPT), which accounted for 1.56%, 2.38%, and 2.82% of Viking Global’s Q3 2021 total holdings, respectively, were among the fund’s worst performers last year.
Despite the setback, over its 20-year history, Viking Global has been one of the world’s most successful hedge funds, returning more than $29 billion in profits to its investors as of 2020. Furthermore, according to Bloomberg, the firm’s Global Opportunities Hybrid fund, which invests in both stocks and private sector companies, returned approximately 20% in 2021.
According to Q3 13F data tracked by Insider Monkey, Viking Global Investors overlooks a $36 billion portfolio at the end of September 2021. Some of the most notable stocks in Viking Global’s holdings are Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA), Amazon.com, Inc. (NASDAQ:AMZN), T-Mobile US, Inc. (NYSE:TMUS).
Our Methodology
We used the third quarter portfolio of Andreas Halvorsen’s Viking Global to select the hedge fund’s top 10 holdings. The securities are ranked according to weightage in Viking Global’s Q3 13F portfolio.
Ole Andreas Halvorsen of Viking Global
Viking Global’s Top Stocks
10. Parker-Hannifin Corporation (NYSE:PH)
Percentage of Viking Global’s 13F Portfolio: 2.40%
Viking Global’s Stake Value: $867,173,000
Number of Hedge Fund Holders: 39
Parker-Hannifin Corporation (NYSE:PH) is a global industrial conglomerate that manufactures motion and control technologies used in a variety of industries including healthcare, aerospace, mobile construction, and electrification. In the third quarter of 2021, Viking Global increased its stake in Parker-Hannifin Corporation (NYSE:PH) by 366%, bringing its total holdings to 3.1 million shares worth $867 million.
Just like Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA), Amazon.com, Inc. (NASDAQ:AMZN), T-Mobile US, Inc. (NYSE:TMUS), Parker-Hannifin Corporation (NYSE:PH) is among the top-weighting stocks in Viking Global’s portfolio.
The Ohio-based industrial company has seen growth in both international and North American industrial segments where fiscal 2022 Q2 orders jumped 14% and 17% respectively, compared to a year ago. During the same period, Parker-Hannifin Corporation’s (NYSE:PH) revenue came in at $3.82 billion, an increase of 12% year over year.
Aside from its enterprise’s success, Parker-Hannifin Corporation (NYSE:PH) is popular among investors due to its consistent dividend payment. The company has increased its dividend in the last five years and pays its shareholders an annualized dividend of $4.12 per share.
At the end of September 2021, 39 funds in the database of Insider Monkey were long Parker-Hannifin Corporation (NYSE:PH), compared to 42 funds in the preceding quarter.
9. Fidelity National Information Services, Inc. (NYSE:FIS)
Percentage of Viking Global’s 13F Portfolio: 2.42%
Viking Global’s Stake Value: $872,697,000
Number of Hedge Fund Holders: 69
Fidelity National Information Services, Inc. (NYSE:FIS), a fintech company based in Florida, is one of the top stocks in Viking Global’s Q3 2021 portfolio. The firm accounts for 2.42% of Viking Global’s holdings as of the end of September 2021, with the hedge fund owning 7.2 million shares of Fidelity National Information Services, Inc. (NYSE:FIS) worth $873 million.
Fidelity National Information Services, Inc. (NYSE:FIS) provides technology, banking, and capital market solutions that include mobile banking, global e-commerce solutions, electronic funds transfer, and asset management.
Dan Dolev, a Mizuho analyst, is bullish on payment stocks, anticipating that they “could rebound sharply” in the second half of 2022. Fidelity National Information Services, Inc. (NYSE:FIS) received a Buy rating and a $150 price target from Dolev on January 25.
As of September 2021, 69 hedge funds in Insider Monkey’s database of 867 funds were long Fidelity National Information Services, Inc. (NYSE:FIS), with Select Equity Group being the largest stakeholder with 9.08 million shares worth $1.12 billion.
In its Q3 2021 investor letter, mentioned Fidelity National Information Services, Inc. (NYSE:FIS) and discussed its stance on the firm. Here is what the fund said:
“Fidelity National Information Services, Inc. provides software to financial institutions and enables merchants to accept electronic payments. The company reported solid quarterly financial results that exceeded expectations and raised annual guidance for revenue and earnings. However, the stock fell due to concerns that Fidelity National’s legacy technology is losing market share to newer competitors with more modern technology. We believe these concerns are overblown and that Fidelity National remains well positioned to grow revenues organically at a high single-digit rate and earnings at a double-digit rate over time.”
8. Brookfield Asset Management Inc. (NYSE:BAM)
Percentage of Viking Global’s 13F Portfolio: 2.52%
Viking Global’s Stake Value: $908,980,000
Number of Hedge Fund Holders: 32
Another notable stock in Viking Global’s portfolio is Brookfield Asset Management Inc. (NYSE:BAM), an asset manager and REIT that primarily invests in infrastructure, renewable power, real estate, and private equities. The hedge fund increased its stake in Brookfield Asset Management Inc. (NYSE:BAM), ending Q3 2021 with 16.9 million shares, up 312% from 4.13 million shares in Q2. This made Viking Global the biggest shareholder of the asset management firm in Q3 2021.
In total, 32 hedge funds in Insider Monkey’s Q3 database were bullish on Brookfield Asset Management Inc. (NYSE:BAM), with stakes amounting to more than $2.5 billion.
Brookfield Asset Management Inc. (NYSE:BAM) operates in over 30 countries, handles over 2,000 investments globally, and manages $650 billion in assets. Shares of Brookfield Asset Management Inc. (NYSE:BAM) increased nearly 3% after the company announced its most recent investment, Hopper, an AI-powered travel platform, on February 3.
Here is what Baron Funds has to say about Brookfield Asset Management Inc. (NYSE:BAM) in its Q2 2021 investor letter:
“The shares of long-term holding Brookfield Asset Management Inc. (NYSE:BAM) gained 15% in the most recent quarter. The company is a leading alternative asset manager focused on investing in high-quality real estate and infrastructure-related assets that tend to generate predictable and growing cash flows. We remain bullish about the ongoing prospects for Brookfield Asset Management Inc. (NYSE:BAM) given the secular growth opportunity for alternative assets, the company’s many competitive advantages including scale, global capabilities, its well-known brand name, operating expertise, and performance track record. We hold management in high regard and believe the shares remain attractively valued.”
7. Adaptive Biotechnologies Corporation (NASDAQ:ADPT)
Percentage of Viking Global’s 13F Portfolio: 2.82%
Viking Global’s Stake Value: $1,019,486,000
Number of Hedge Fund Holders: 25
Seattle-based biotech firm Adaptive Biotechnologies Corporation (NASDAQ:ADPT) is one of the biggest holdings in Viking Global’s portfolio at the end of September 2021. In addition to Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA), Amazon.com, Inc. (NASDAQ:AMZN) and T-Mobile US, Inc. (NYSE:TMUS), Adaptive Biotechnologies Corporation (NASDAQ:ADPT) is one of the top stocks in Viking Global’s portfolio. The fund owns a $1.02 billion position in Adaptive Biotechnologies Corporation (NASDAQ:ADPT) and the company represents 2.82% of its total holdings.
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) develops genetic sequencing platforms used in the diagnosis and treatment of various diseases such as COVID-19, blood cancers, autoimmune illnesses, and infectious diseases. One of the company’s products, clonoSEQ, saw a 47% year-over-year increase in clinical sequencing volume in the third quarter of 2021. Overall, Adaptive Biotechnologies Corporation (NASDAQ:ADPT) grew its revenue by 50% year over year to $39.5 million in the same period.
Star stock picker Cathie Wood is among the major shareholders in Adaptive Biotechnologies Corporation (NASDAQ:ADPT). ARK Investment Management owned 4.85 million shares of the biotech company for $165 million in the third quarter of 2021. Overall, 25 funds in the database of Insider Monkey were long Adaptive Biotechnologies Corporation (NASDAQ:ADPT) at the end of September, compared to 27 funds in the previous quarter.
6. Microsoft Corporation (NASDAQ:MSFT)
Percentage of Viking Global’s 13F Portfolio: 2.84%
Viking Global’s Stake Value: $1,026,625,000
Number of Hedge Fund Holders: 250
Tigress Financial analyst Ivan Feinseth recently raised the price target for Microsoft Corporation (NASDAQ:MSFT) to $411 from $366. According to Feinseth, rising demand for cloud migration is one of Microsoft Corporation’s (NASDAQ:MSFT) major revenue and growth drivers. The analyst maintained his Buy rating on the tech stock.
Even though Viking Global decreased its stake in Microsoft Corporation (NASDAQ:MSFT) by 22% in the third quarter of 2021, the tech company remains one of its largest positions. Viking Global owns a $1.03 billion stake in the tech company. Overall, 250 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT) at the end of Q3, up from 238 funds in the preceding quarter.
Here is what Alger Spectra Fund has to say about Microsoft Corporation in its Q4 2021 investor letter:
“Class A shares of the Alger Spectra Fund underperformed the Russell 3000 Growth Index during the fourth quarter of 2021. Microsoft Corp. was among the top contributors to performance. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s CEO believes technology spending as a percent of GDP is likely to jump from about 5% today to 10% in a few years and that Microsoft will continue to take market share Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft Corporation (NASDAQ:MSFT) reported that Azure grew 50% in the past quarter. This high unit volume growth is a primary driver of the company’s higher share price, but strong operating execution has enabled margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.”
Click to continue reading and see Viking Global’s Top 5 Stocks.
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Disclosure: None. Viking Global’s Top 10 Stocks is originally published on Insider Monkey.
