Viking is a long/short global equity fund with a bottom-up stock picking approach: “We believe that our thoughtful analysis and disciplined valuation over time yield a diversified portfolio of longs and shorts whose stock price developments will deviate from each other and provide a profitable spread.” Viking analysts are encouraged to invest in stock choices they find compelling, regardless of management sentiment: “When we had strong conviction in an investment and scaled it, our success rate increased – in other words, our high conviction has been correlated with improved odds of being right.”
Viking Global returned an astonishing 89% after fees in its first full year. Viking Global returned 13% during the last 10 years. Viking Global Equities lost 1.9% in 2008, gained 20% in 2009, and returned 3.8% in 2010.
Top Five Holdings in 2010
Number of Shares
Time Warner Cable Inc.
Yum Brands Inc.
Sherwin William Company
Invesco Ltd. (IVZ)
Invesco Ltd. is an independent global investment management company. Invesco provides a range of investment strategies and vehicles to its retail, institutional and high-net-worth clients globally. It has operations in the institutional and retail segments of the investment management industry in North America, Europe and Asia-Pacific, serving clients in 150 countries. On June 1, 2010, Invesco acquired Morgan Stanley’s retail asset management business, including Van Kampen Investments.
Their shares trade around $25.46, with a P/E ratio of 25.53 and an EPS of $1. In the last quarter of 2010, Invesco had revenue of $1.1 billion and a net income of $212 million. Over the past ten years, Invesco has had an average revenue growth of 7.3%. GuruFocus rated Invesco with the business predictability rank of 1-star.
Citigroup Inc. is global a diversified financial services holding company. Citigroup businesses provide consumers, corporations, governments and institutions with a range of financial products and services. The company has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citigroup operates two primary business segments: Citicorp, consisting of its Regional Consumer Banking businesses and Institutional Clients Group, and Citi Holdings, consisting of its Brokerage and Asset Management, Local Consumer Lending, and Special Asset Pool.
Their shares trade around $4.54, with a P/E ratio of 12.74 and an EPS of $0.36. In the last quarter of 2010, Citigroup had a net income of $1.1 billion. Over the past ten years, Citigroup has had an average revenue growth of -14%. GuruFocus rated Citigroup with the business predictability rank of 1-star.
Time Warner Cable Inc. (TWC)
Time Warner Cable Inc. is a cable operator in the United States with systems located in five geographic areas: New York State, the Carolinas, Ohio, Southern California and Texas. Time Warner Cable offers video, high-speed data and voice services over its broadband cable systems to residential and commercial customers. It serves approximately 14.5 million residential and commercial customers who subscribe to one or more of its three subscription services: video, high-speed data and voice, totaling approximately 26.7 million primary service units. It markets its services separately and in bundled packages of multiple services and features.
Their shares trade around $72.76, with a P/E ratio of 20.01 and an EPS of $3.64. In the last quarter of 2010, Time Warner Cable had revenue of $4.8 billion and a net income of $593 million.
YUM! Brands Inc. (YUM)
YUM! Brands Inc. is a quick service restaurant company, with more than 37,000 units in more than 110 countries and territories. YUM operates through its five concepts of KFC, Pizza Hut, Taco Bell, Long John Silver’s and A&W All-American Food Restaurants. The company develops, operates, franchises and licenses a worldwide system of restaurants, which prepare, package and sell a menu of competitively priced food items. In addition, the company owns non-controlling interests in entities in China who operate similar to franchisees of KFC and a non-controlling interest in Little Sheep. YUM develops, operates, franchises and licenses a worldwide system of both traditional and non-traditional QSR restaurants.
Their shares trade around $49.91, with a P/E ratio of 20.92 and an EPS of $2.39. In the last quarter of 2010, YUM had revenue of $3.5 billion and a net income of $386 million. Over the past ten years, YUM has had an average revenue growth of 8.8%. GuruFocus rated YUM with the business predictability rank of 4-stars.
Sherwin Williams Company (SHW)
The Sherwin-Williams Company is engaged in the development, manufacture, distribution and sale of paint, coatings and related products to professional, industrial, commercial and retail customers primarily in North and South America, with additional operations in the Caribbean region, Europe and Asia. The company has three segments: Paint Stores Group, Consumer Group and Global Finishes Group.
Their shares trade around $84.78, with a P/E ratio of 20.18 and an EPS of $4.2. In the last quarter of 2010, Sherwin Williams had revenue of $1.8 billion and a net income of $72 million. Over the past ten years, Sherwin Williams has had an average revenue growth of 9.9%. GuruFocus rated Sherwin Williams with the business predictability rank of 3-stars.
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