(GuruFocus, July 30, 2009) Investment Guru, head of Viking Global Investors L.P., Andreas Halvorsen's just published his 2Q09 letter to shareholders. Here are noteworthy facts:
The Viking Global Equities III Fund has $6.6 billion asset under management while their firm managed a whole of $10.5 billon as 2Q09. Redemption during 2Q09 was 4.9%. It is remarkable that of the $10.5 billion, only 22% is net paid-in-capital and rests are appreciation
The funds was up only 0.5% net in 2Q09, as compared to a 15.9% gain for the S&P500. The long-short spread for the quarter was -11% due to a return of 17% for their longs and 27.9% for their shorts. Shorts overran longs, suppressing the performance of the overall performance
The Gross Exposure increased from 86% to 112% during the quarter, through a combination of market movement and new investment ideas. The net exposure is up to 37% from 29%. The firm ianticipate a further rise in gross exposure.
The firm had 145 equity positions as of 2Q09 (up from 125). 47% of the 145 were new positions started during the quarter. Overall, they have 65 longs and 80 shorts where the largest long is 4.2% of the portfolio (Invesco Limited) and their largest short is -2.3% of the portfolio (not disclosed).
In terms of sector allocation, Software and service represents 18.2% of total gross exposure, Media at 9.1%, Other Diversified Financial Services at 5.7% and Food, Beverage, and Tobacco at 4.6%.
In terms of concentration, top ten largest longs comprised 32.2% and the ten largest shorts accounted for 12.2% of capital.
Five of the top ten long positions were new to, or reentered, the list during 2Q09: Unilever NV, The DirectTV Group, Inc., JP Morgan Chase & Co., The Walt Disney Co., and Bank of America Cop..
Read the complete letter
Survey of the New Top 10 Positions
1. Unilever NV (UN, Financial),
Unilever is one of the world's largest consumer products companies. They produce and market a wide range of foods home and personal care products. Their leading brands include Dove Lipton Magnum Omo and Rama. They are the number one producer of frozen foods in Europe They are also a leader in the branded olive oil category the most important brand being Bertolli. They are the largest seller of packet tea in the world through our Lipton and Brooke Bond brands. Unilever N.V. New York Registry has a market cap of $74.41 billion; its shares were traded at around $26.68 with a P/E ratio of 10.2 and P/S ratio of 1.2. The dividend yield of Unilever N.V. New York Registry stocks is 3.3%. Unilever N.V. New York Registry had an annual average earning growth of 2.4% over the past 10 years.
2. The DirectTV Group, Inc. (DTV, Financial)
The DIRECTV Group Inc. is a world-leading provider of digital multichannel television entertainment broadband satellite networks and services and global video and data broadcasting. DIRECTV Group Inc. The has a market cap of $26.31 billion; its shares were traded at around $26.1 with a P/E ratio of 21 and P/S ratio of 1.3. DIRECTV Group Inc. The had an annual average earning growth of 12.7% over the past 10 years.
3. JP Morgan Chase & Co. (JPM, Financial)
J.P. Morgan Chase & Co. is a leading global financial services firm. The firm is a leader in investment banking asset management private banking private equity custody and transaction services and retail and middle market financial services. JPMorgan Chase & Co. has a market cap of $147.34 billion; its shares were traded at around $37.77 with a P/E ratio of 96.9 and P/S ratio of 2.2. The dividend yield of JPMorgan Chase & Co. stocks is 0.5%.
4. The Walt Disney Co. (DIS, Financial)
Walt Disney Company owns 100% of Disney Enterprises Inc. which together with its subsidiaries is a diversified worldwide entertainmentcompany with operations in five business segments: Media Networks Studio Entertainment Theme Parks and Resorts Consumer Products and Internet and Direct Marketing. The Walt Disney Company Disney has a market cap of $48.07 billion; its shares were traded at around $25.89 with a P/E ratio of 13.7 and P/S ratio of 1.3. The dividend yield of The Walt Disney Company Disney stocks is 1.3%. The Walt Disney Company Disney had an annual average earning growth of 4.4% over the past 10 years.
5. Bank of America Cop. (BAC, Financial)
Bank of America Corp. is one of the world's leading financial services companies. Bank of America provides individuals small businesses and commercial corporate and institutional clients across the United States and around the world new and better ways to manage their financial lives. The company enables customers to do their banking and investing whenever wherever and however they choose. Bank of America Corp. has a market cap of $107.08 billion; its shares were traded at around $13.52 with a P/E ratio of 24.1 and P/S ratio of 1.4. The dividend yield of Bank of America Corp. stocks is 0.3%. Bank of America Corp. had an annual average earning growth of 7.5% over the past 10 years.
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The Viking Global Equities III Fund has $6.6 billion asset under management while their firm managed a whole of $10.5 billon as 2Q09. Redemption during 2Q09 was 4.9%. It is remarkable that of the $10.5 billion, only 22% is net paid-in-capital and rests are appreciation
The funds was up only 0.5% net in 2Q09, as compared to a 15.9% gain for the S&P500. The long-short spread for the quarter was -11% due to a return of 17% for their longs and 27.9% for their shorts. Shorts overran longs, suppressing the performance of the overall performance
The Gross Exposure increased from 86% to 112% during the quarter, through a combination of market movement and new investment ideas. The net exposure is up to 37% from 29%. The firm ianticipate a further rise in gross exposure.
The firm had 145 equity positions as of 2Q09 (up from 125). 47% of the 145 were new positions started during the quarter. Overall, they have 65 longs and 80 shorts where the largest long is 4.2% of the portfolio (Invesco Limited) and their largest short is -2.3% of the portfolio (not disclosed).
In terms of sector allocation, Software and service represents 18.2% of total gross exposure, Media at 9.1%, Other Diversified Financial Services at 5.7% and Food, Beverage, and Tobacco at 4.6%.
In terms of concentration, top ten largest longs comprised 32.2% and the ten largest shorts accounted for 12.2% of capital.
Five of the top ten long positions were new to, or reentered, the list during 2Q09: Unilever NV, The DirectTV Group, Inc., JP Morgan Chase & Co., The Walt Disney Co., and Bank of America Cop..
Read the complete letter
Survey of the New Top 10 Positions
1. Unilever NV (UN, Financial),
Unilever is one of the world's largest consumer products companies. They produce and market a wide range of foods home and personal care products. Their leading brands include Dove Lipton Magnum Omo and Rama. They are the number one producer of frozen foods in Europe They are also a leader in the branded olive oil category the most important brand being Bertolli. They are the largest seller of packet tea in the world through our Lipton and Brooke Bond brands. Unilever N.V. New York Registry has a market cap of $74.41 billion; its shares were traded at around $26.68 with a P/E ratio of 10.2 and P/S ratio of 1.2. The dividend yield of Unilever N.V. New York Registry stocks is 3.3%. Unilever N.V. New York Registry had an annual average earning growth of 2.4% over the past 10 years.
2. The DirectTV Group, Inc. (DTV, Financial)
The DIRECTV Group Inc. is a world-leading provider of digital multichannel television entertainment broadband satellite networks and services and global video and data broadcasting. DIRECTV Group Inc. The has a market cap of $26.31 billion; its shares were traded at around $26.1 with a P/E ratio of 21 and P/S ratio of 1.3. DIRECTV Group Inc. The had an annual average earning growth of 12.7% over the past 10 years.
3. JP Morgan Chase & Co. (JPM, Financial)
J.P. Morgan Chase & Co. is a leading global financial services firm. The firm is a leader in investment banking asset management private banking private equity custody and transaction services and retail and middle market financial services. JPMorgan Chase & Co. has a market cap of $147.34 billion; its shares were traded at around $37.77 with a P/E ratio of 96.9 and P/S ratio of 2.2. The dividend yield of JPMorgan Chase & Co. stocks is 0.5%.
4. The Walt Disney Co. (DIS, Financial)
Walt Disney Company owns 100% of Disney Enterprises Inc. which together with its subsidiaries is a diversified worldwide entertainmentcompany with operations in five business segments: Media Networks Studio Entertainment Theme Parks and Resorts Consumer Products and Internet and Direct Marketing. The Walt Disney Company Disney has a market cap of $48.07 billion; its shares were traded at around $25.89 with a P/E ratio of 13.7 and P/S ratio of 1.3. The dividend yield of The Walt Disney Company Disney stocks is 1.3%. The Walt Disney Company Disney had an annual average earning growth of 4.4% over the past 10 years.
5. Bank of America Cop. (BAC, Financial)
Bank of America Corp. is one of the world's leading financial services companies. Bank of America provides individuals small businesses and commercial corporate and institutional clients across the United States and around the world new and better ways to manage their financial lives. The company enables customers to do their banking and investing whenever wherever and however they choose. Bank of America Corp. has a market cap of $107.08 billion; its shares were traded at around $13.52 with a P/E ratio of 24.1 and P/S ratio of 1.4. The dividend yield of Bank of America Corp. stocks is 0.3%. Bank of America Corp. had an annual average earning growth of 7.5% over the past 10 years.
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