We recently compiled a list of the Billionaire Andreas Halvorsen’s Top 15 Long-Term Stock Picks. In this article, we are going to take a look at where Roivant Sciences Ltd. (NASDAQ:ROIV) stands against Andreas Halvorsen’s other long-term stock picks.
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.
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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.
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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).
A research scientist in a lab coat examining a sample of blood for sickle cell diseases.
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.
Overall ROIV ranks 7th on our list of Billionaire Andreas Halvorsen’s top long-term stock picks. While we acknowledge the potential of ROIV 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 ROIV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.