We recently compiled a list of Norwegian Billionaire Halvorsen’s Top 10 Stock Picks. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against Halvorsen’s other top stock picks.
Ole Andreas Halvorsen, the founder and CEO of Viking Global, has built one of the most respected names in the hedge fund world. Born in Norway, Halvorson graduated with an undergraduate degree in economics from Williams College in 1986. He then later earned a postgraduate business degree from Stanford University. Having received his first taste of finance while working for Morgan Stanley, he’s part of an elite group of investors known as the “Tiger Cubs,” former protégés of hedge fund legend Julian Robertson, who went on to launch their own successful firms.
Viking Global, based in Greenwich, Connecticut, has grown into an investment powerhouse. Back in 2023, the firm delivered an impressive $6 billion in returns for its investors, ranking just behind heavyweights like Citadel and TCI. Much of this success came from smart bets on big names. In the same year, Halvorsen decided to reopen Viking Global’s long/short flagship fund to new investors. Over a decade ago, he had closed the fund, citing its size as a barrier to uncovering profitable trading opportunities.
That said, Halvorsen isn’t just about bullish bets. While long positions are Viking Global’s bread and butter, the firm has also employed strategies that allow it to profit from short positions during turbulent market years like 2020 and 2022. The billionaire firmly believes that effective and profitable trading requires careful analysis and disciplined, long-term valuation. This philosophy has shaped Viking Global’s portfolio into a balanced mix of both long-term and short-term investments. While his primary focus remains on long-term stakes in public and private companies, Halvorsen isn’t afraid to embrace “thoughtful risk-taking” to maximize returns. This balanced approach, combining strategic risk with a commitment to disciplined analysis, is at the heart of Viking Global’s success.
This year, Viking’s funds have been making a strong comeback. Its hybrid fund, Viking Global Opportunities, which invests in both public stocks and private companies, earned a modest 1% return in the third quarter, trimming its year-to-date losses to 1.6%. Meanwhile, its private-asset fund, Viking Global Opportunities Drawdown, gained 4.2% for the quarter, bringing its total return for the year to 8.3%. After a rough second quarter, these results show Viking is back on track and making waves in the investment world. Overall, as of Q3 2024, Halvorsen’s 13F portfolio reflects a strong focus on the healthcare, finance, services, and technology sectors. The portfolio’s total value stands at over $27.43 billion, marking a 1.05% increase compared to the previous quarter.
Our Methodology
For this analysis, we examined Viking Global’s stock portfolio from the third quarter of 2024. The stocks are ranked based on the firm’s stake value in each holding.
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 wide view of an Apple store, showing the range of products the company offers.
Apple Inc. (NASDAQ:AAPL)
Viking Global’s Q3 Stake: $1.13 billion
Number of Hedge Fund Holders: 158
Apple Inc. (NASDAQ:AAPL), renowned for its iconic iPhone, Mac computers, and iPads, also derives significant revenue from its services segment, which includes Apple Pay, the App Store, Apple Music, and iCloud.
On October 31, Apple Inc. (NASDAQ:AAPL) announced a record fourth-quarter revenue of $94.9 billion, a 6% increase from the previous year, fueled by strong demand for the iPhone 16 series, Apple Watch Series 10, and AirPods 4. The company is also gearing up for the release of its 18.2 software update, which will introduce a range of AI-powered features and is expected to roll out to users soon. Additionally, the tech giant is expanding its services into new markets, with the highly anticipated launch of Apple Intelligence in China marking a significant step in its global growth strategy.
UBS analysts have adopted a cautiously optimistic stance on Apple’s iPhone 16, citing mixed demand signals and lukewarm interest in AI-related features, particularly outside of China. A UBS Evidence Lab survey revealed varying consumer sentiment across regions. In the U.S., purchase intent remained steady at 24%, while in China, it dipped to 17%, a 200-basis-point decline from 2023. However, Europe showed positive trends, with purchase intent rising in the U.K. by 200 basis points to 19% and in Germany by 300 basis points to 14%. Despite the tempered demand and skepticism toward AI features, UBS raised its global smartphone sell-in estimates to 1.21 billion units for 2024 and 1.24 billion units for 2025, indicating modest growth. On December 2, UBS maintained a $236 price target and a Neutral rating for AAPL shares, valuing the stock at 32 times its projected 2026 earnings per share of $7.49.
In its third quarter 2024 investor letter, Madison Investments said the following regarding Apple Inc. (NASDAQ:AAPL):
“Alphabet Inc., Eli Lilly and Company, Qualcomm Incorporated, Microsoft Corporation, and Apple Inc. (NASDAQ:AAPL) were the largest detractors. Apple has been volatile in the last quarter but ended on strength. Early in the quarter, Apple benefited from the introduction of their AI strategy, Apple Intelligence. They followed in September with the new iPhone 16, which also created some excitement. We are underweight to Apple, which has resulted in a headwind for performance.”
Overall, AAPL ranks 3rd on our list of Halvorsen’s top stock picks. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL 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.
