Billionaire and Tiger Cub Andreas Halvorsen’s Top Stock Picks Include Qualcomm

Andreas Halvorsen co-founded Viking Global in 1999 with two other former members of Tiger Management, the hedge fund run by legendary Julian Robertson. His partners have since left the firm. Viking filed its 13F for the fourth quarter of 2012 in February, disclosing many of its long equity positions as of the end of December. We use 13F filings to research investment strategies- for example, we have found that the most popular small cap stocks among hedge funds outperform the S&P 500 by 18 percentage points per year on average- as well as to analyze fund managers’ top picks. Read on for our thoughts on Halvorsen’s five largest holdings by market value and compare them to previous filings.

Viking increased its stake in Time Warner Inc (NYSE:TWX) by 45% and owned nearly 20 million shares at the end of 2012. The entertainment company managed a large percentage increase in earnings last quarter compared to the fourth quarter of 2011, despite revenue being flat. While a continued discrepancy between the two would not be sustainable, Time Warner carries earnings multiples in the teens and might offer “growth at a reasonable price.” Coatue Management, managed by fellow Tiger Cub Philippe Laffont, more than tripled the size of its own position in Time Warner (see Laffont’s stock picks).

Andreas HalvorsenHalvorsen and his team were also buying News Corp (NASDAQ:NWSA), likely due to the special situation offered by the breakup of the company. It’s well accepted that spinouts allow management of the newly independent company to better focus on operations, and the breakup of News Corp could create a similar situation. This is why the stock was the most popular consumer services stock among hedge funds (find more consumer services stocks hedge funds loved). We’ve noticed that at a trailing P/E of 17 News Corp is actually about fairly valued as things stand, meaning that not much post-breakup improvement would be required to make it a good value.

See three more stocks Halvorsen was buying, including a popular tech stock:

Danaher Corporation (NYSE:DHR), a $42 billion market cap industrial and medical instruments company, was another of Viking’s favorite stocks as the fund owned over 14 million shares according to its 13F. It’s another stock competing for GARP status, given the fact that it trades at 18 times trailing earnings and that the combination of 6% revenue growth and improved margins pushed net income up 11% in Q4 2012 versus a year earlier. Billionaire Steve Cohen’s SAC Capital Advisors was also bullish on Danaher, increasing its position to a total of 2.1 million shares (check out more stocks SAC was buying).

The fund added shares of Capital One Financial Corp. (NYSE:COF) and closed December with nearly 14 million shares in its portfolio. Capital One’s stock price hasn’t performed as well in the last year as those of other credit card companies have, though at this point it looks like a good value: the stock posts trailing and forward P/Es of 8. Market leader Visa Inc (NYSE:V), for purposes of comparison, is up 36% from its levels at this point in 2012 but trades at 19 times consensus earnings for the fiscal year ending in September 2014. Lone Pine Capital initiated a position of 4.4 million shares in Capital One; Stephen Mandel, the manager of Lone Pine, is another billionaire Tiger Cub. See what else Mandel was buying.

Rounding out Viking’s top five picks is Qualcomm, Inc. (NASDAQ:QCOM), which was also one of the names on our list of the most popular tech stocks among hedge funds for the fourth quarter (see the full top ten list). The fund owned over 11 million shares of Qualcomm, up 12% from the beginning of October. At a market capitalization of over $110 billion, Qualcomm is valued at 14 times forward earnings estimates with a five-year PEG ratio of 1. With results from its most recent fiscal quarter looking good, it’s another stock that could be worth further research.

Disclosure: I own no shares of any stocks mentioned in this article.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!