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James Li
James Li
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Andreas Halvorsen’s Top 5 Buys in the 4th Quarter

Viking leader releases quarterly portfolio

February 14, 2020 | About:

Andreas Halvorsen (Trades, Portfolio), chief investment officer of Viking Global Partners, disclosed this week that his top five new buys for the fourth quarter of 2019 were MetLife Inc. (NYSE:MET), UnitedHealth Group Inc. (NYSE:UNH), Booking Holdings Inc. (NASDAQ:BKNG), Textron Inc. (NYSE:TXT) and McKesson Corp. (NYSE:MCK).

Managing a portfolio of 66 stocks, Halvorsen previously worked as senior managing director and equities director at Tiger Management, the renowned hedge fund founded by Julian Robertson (Trades, Portfolio). Viking mentions on its website that the firm employs a research-intensive, long-term focused investment approach and selects securities based on an application of company fundamental analysis.

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As of quarter's end, the $21.35 billion equity portfolio contains 66 stocks, of which 18 represent new holdings. The top three sectors in terms of weight are health care, technology and consumer cyclical, with weights of 31.96%, 20.53% and 18.20%.

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MetLife

Halvorsen purchased 6,723,542 shares of MetLife, giving the stake 1.61% weight in the equity portfolio. Shares averaged $48.37 during the quarter.

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The New York-based company provides a wide range of insurance and financial services products. According to GuruFocus, MetLife’s return on assets underperforms 64.74% of global competitors despite three-year revenue and earnings growth rates outperforming over 60% of global insurance companies.

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Dodge & Cox has the largest holding in MetLife with 46,452,543 shares.

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UnitedHealth

Halvorsen purchased 958,037 shares of UnitedHealth, giving the position 1.32% weight in the equity portfolio. Shares averaged $263.11 during the quarter.

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The Minnetonka, Minnesota-based company provides health insurance services to its members through a wide range of products and market groups. GuruFocus ranks UnitedHealth’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank and a return on equity that outperforms 80% of global competitors.

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The Vanguard Health Care Fund (Trades, Portfolio) has the largest holding in UnitedHealth with 9,564,836 shares.

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Booking

Halvorsen purchased 127,676 shares of Booking, giving the position 1.23% weight in the equity portfolio. Shares averaged $1,963.19 during the quarter.

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The Norwalk, Connecticut-based company offers booking and reservation services for a wide range of hotels and restaurants, through websites like Priceline.com, Booking.com and Opentable.com. GuruFocus ranks Booking’s profitability 10 out of 10 on several positive investing signs, which include a 3.5-star business predictability rank, expanding profit margins and a return on assets that outperforms over 96% of global competitors.

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Textron

Halvorsen purchased 4,944,853 shares of Textron, giving the holding 1.03% weight in the equity portfolio. Shares averaged $46.28 during the quarter.

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The Providence, Rhode Island-based company operates in the aerospace, defense and industrial markets, with brands including Cessna and Bell. GuruFocus ranks Textron’s profitability 7 out of 10: Although the company’s return on assets outperforms 72.18% of global competitors, its net margin outperforms just 59.50% of global aerospace and defense companies.

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McKesson

Halvorsen purchased 1,508,413 shares of McKesson, giving the stake 0.98% weight in the equity portfolio. Shares averaged $141.47 during the quarter.

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The San Francisco-based company distributes and wholesales specialty drug and medical products. GuruFocus ranks the company’s valuation 8 out of 10 on several signs of undervaluation, including a forward price-earnings ratio, a price-sales ratio and an EV-to-Revenue ratio outperforming over 84% of global competitors. Additionally, McKesson’s profitability ranks 7 out of 10, driven by a three-year revenue growth rate that outperforms 71.67% of global medical distribution companies.

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Disclosure: No positions.

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About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

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