Viking Global Investors LP, the firm founded by Andreas Halvorsen (Trades, Portfolio), disclosed in a regulatory filing that its top five trades during the third quarter included the closure of its position in Centene Corp. (CNC, Financial) and American International Group Inc. (AIG, Financial), a reduction to its holding of T-Mobile US Inc. (TMUS, Financial) and boosts to its investments in Visa Inc. (V, Financial) and Elevance Health Inc. (ELV, Financial).
Prior to founding the Greenwich, Connecticut-based firm, Halvorsen worked as senior managing director and director of equities at Julian Robertson (Trades, Portfolio)’s Tiger Management. Viking Global applies fundamental analysis and a thorough assessment of a company’s business models and fundamental data, management quality and cyclical and secular industry trends.
As of September, the firm’s $21.57 billion 13F equity portfolio contains 87 stocks, with 20 new positions and a quarterly turnover ratio of 26%. The top three sectors in terms of weight are health care, financial services and technology, representing 33.09%, 21.57% and 16.59% of the equity portfolio.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Centene
Viking sold all 8,293,867 shares of Centene (CNC, Financial), trimming 3.22% of its equity portfolio.
Shares of Centene averaged $89.37 during the third quarter; the stock is fairly valued based on its price-to-GF Value ratio of 0.95 as of Tuesday.
The St. Louis-based health care plans company has a GF Score of 91 out of 100, driven by a growth rank of 10 out of 10, a profitability rank of 8 out of 10 and a rank of 6 out of 10 for momentum, GF Value and financial strength.
Centene’s profitability ranks 8 out of 10 on the back of a 2.5-star business predictability rank and 10 years of positive operating income over the past 10 years despite profit margins and returns underperforming more than 60% of global competitors.
American International Group
The firm sold all 10,108,715 shares of American International Group (AIG, Financial), trimming 2.37% of its equity portfolio.
Shares of American International Group averaged $52.53 during the third quarter; the stock is fairly valued based on its price-to-GF Value ratio of 1.07.
The New York-based insurance company has a GF Score of 71 out of 100: Although the company has a momentum rank of 9 out of 10, AIG’s profitability and GF Value rank 5 out of 10 while financial strength and growth rank just 4 out of 10.
AIG’s financial strength ranks 4 out of 10 on the back of debt-to-equity ratios underperforming more than 80% of global competitors despite having a high Piotroski F-score of 7 out of 9.
T-Mobile US
The firm sold 5,845,787 shares of T-Mobile (TMUS, Financial), slicing 63.75% of the position and 3.61% of its equity portfolio.
Shares of T-Mobile averaged $140.43 during the third quarter; the stock is modestly overvalued based on its price-to-GF Value ratio of 1.12 as of Tuesday.
The Bellevue, Washington-based telecom company has as GF Score of 79 out of 100 based on a growth rank of 8 out of 10, a profitability rank of 7 out of 10, a momentum rank of 6 out of 10, a financial strength rank of 4 out of 10 and a GF Value rank of 3 out of 10.
Other gurus with holdings in T-Mobile include Dodge & Cox and Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial).
Visa
Viking purchased 2,790,724 shares of Visa (V, Financial), expanding the position by 109.19% and its equity portfolio by 2.30%.
Shares of Visa averaged $203.49 during the third quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.77 as of Tuesday.
The San Francisco-based payment processing company has a GF Score of 99 out of 100, driven by a rank of 10 out of 10 for profitability and growth, a rank of 9 out of 10 for momentum and GF Value and a financial strength rank of 7 out of 10.
Gurus with holdings in Visa include Berkshire, Frank Sands (Trades, Portfolio)’ Sands Capital Management and Ken Fisher (Trades, Portfolio)’s Fisher Investments.
Elevance Health
Viking added 872,356 shares of Elevance Health (ELV, Financial), boosting the position by 59.57% and its equity portfolio by 1.84%.
Shares of Elevance Health averaged $478.49 during the third quarter; the stock is fairly valued based on its price-to-GF Value ratio of 1.07 as of Tuesday.
The Indianapolis-based health insurance company has a GF Score of 90 out of 100 based on a growth rank of 10 out of 10, a profitability rank of 8 out of 10, a GF Value rank of 5 out of 10 and a rank of 6 out of 10 for financial strength and momentum.
