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Viking Global Investors’ Impact Selling

November 29, 2013 | About:
Sally Jones

Sally Jones

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The stocks bought by Andreas Halvorsen, co-founder and CEO of Viking Global Investors, averaged a return of 23.28% over 12 months, according to the GuruFocus Score Board of Gurus. Andreas Halvorsen’s recently updated portfolio shows 59 stocks, 24 of them new, with a total value of $18.11 billion and a quarter-over-quarter turnover of 33%. The hedge fund portfolio is currently weighted with the consumer cyclical sector at 26.4%, healthcare at 21.9% and financial services at 17.6%.

Viking Global Investors traded heavily in the third quarter, decreasing or selling 43 companies.

Here are the portfolio’s four high-impact sells, as of Sept. 30, 2013, starting with Boeing Co., the aerospace and defense contractor. Expanding its pilot training business in Korea, Boeing Co. initiated a project with Korean Air and Incheon, a city in South Korea, for the construction of a new aviation training facility in Incheon's Free Economic Zone. Supporting Korean Air's flight training needs, the facility and campus will be operational in 2015. Read about Boeing’s move to Chicago.

SOLD OUT: Boeing Co. (BA)

Impact to Portfolio: -4.6%

Up 82% over 12 months, Boeing Co. has a market cap of $101.24 billion; its shares currently trade at around $134.72 with a P/E ratio of 24.00. The dividend yield is 1.40%.

Originally incorporated in 1916, Boeing Co. is an aerospace and defense company, engaged in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services. The company also manufactures airplanes for the worldwide commercial airline industry.

Guru Action: As of Sept. 30, 2013, Halvorsen sold out BA after three quarters. He sold 7,995,460 shares at an average price of $107.71, for a gain of 25.1%, the low point in the history. Halvorsen had double-digit gains in all three quarters, topping out at a 72.3% gain in the first quarter of 2013 when he made a new buy of 12,375,078 shares at an average price of $78.17 per share.

The gurus are divided on BA in the third quarter; the insider selling is active.

Tracking share price, revenue and net income since 1990:

1385680317681.png

SOLD OUT: Cemex S.A.B de C.V. (CX)

Impact to Portfolio: -3.7%

Up 25% over 12 months, Cemex S.A.B de C.V. has a market cap of $11.89 billion; its shares currently trade at around $10.87 per share. The company does not pay a dividend.

A holding company for construction business entities, Cemex is a cement manufacturer based in Mexico with operations in North America, Europe, South America, Central America, the Caribbean, Africa, the Middle East, Australia and Asia.

Guru Action: As of Sept. 30, 2013, Halvorsen sold out his CX, selling 63,547,228 shares at an average price of $11.49, for a loss of 5.4%.

The holding’s lowest quarter was the second quarter of 2013; he had a loss of 3.4% buying 17,357,024 shares at an average price of $11.25 per share.

In five quarters of mixed results, Halvorsen’s highest gain was 40.6% made selling 10,866,714 shares at an average price of $7.73 per share in the second quarter of 2011.

Tracking share price, revenue and net income over the years:

1385680110790.png

Here’s more guru trading in the third quarter. No insider activity was found.



REDUCED: Intuitive Surgical Inc. (ISRG)

Impact to Portfolio: -4.21%

Current Shares: 210,426

Down 29% over 12 months, Intuitive Surgical Inc. has a market cap of $14.39 billion; its shares were traded at around $378.01, with a P/E of 22.60.

The company designs, manufactures and markets da Vinci Surgical Systems, EndoWrist instruments, and surgical accessories. A da Vinci Surgical System consists of a surgeon's console, a patient-side cart and a high performance vision system.

Read Baron Funds’ comments on ISRG.

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Guru Action: As of Sept. 30, 2013, Halvorsen reduced his position by 87.69% after five losing quarters, selling 1,498,627 shares at an average price of $397.44, for a loss of 4.9%.

Overall, he has averaged a loss of 28% on 1,850,153 shares bought at an average price of $528.18 per share. On shares sold, he has averaged a loss of 7% on 1,639,727 shares sold at an average price of $405.90 per share.

Here’s more guru and insider action.



REDUCED: Time Warner Inc. (TWX)

Impact to Portfolio: -3.75%

Current Shares: 14,817,831

Up 40% over 12 months, Time Warner Inc. has a market cap of $59.39 billion; its shares were traded at around $65.64, with a P/E of 16.10. The dividend yield is 1.80%.

Guru Action: As of Sept. 30, 2013, Halvorsen reduced his position by 44.11%, selling 11,693,532 shares at an average price of $62.38, for a gain of 5.2%.

Over eight gaining quarters, he has averaged a gain of 43% on 26,511,363 shares bought at an average price of $45.85 per share. On shares sold, he has averaged a gain of 5% on 11,693,532 shares sold at an average price of $62.38 per share.

Here’s the guru and insider action on TWX.

1385681094856.png

A former “Tiger Cub” and Norwegian Navy Seal, Viking’s Andreas Halvorsen has a net worth of $1.3 billion, as of March 2013, according to Forbes.



Here is the complete portfolio of Andreas Halvorsen.

Read more about:

1. Andreas Halvorsen's Undervalued Stocks

2. Andreas Halvorsen's Top Growth Companies

3. Andreas Halvorsen's High Yield stocks

4. Stocks that Andreas Halvorsen keeps buying

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GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.0/5 (2 votes)

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