Small-cap picks from individual funds might provide investors with attractive investment options. In this article we will look into Andreas Halvorsen’s Viking Global’s top picks, according to its last 13F filing.
The fund’s largest small-cap pick is Triumph Group Inc (NYSE:TGI), a $3.6 billion market cap company that designs, engineers, manufactures, repairs and overhauls a broad portfolio of aerostructures, aircraft components, accessories, subassemblies and systems. Over the first quarter of 2014, Viking Global increased its stake in Triumph Group Inc (NYSE:TGI) by 4%, to 3.71 million shares. This position, worth about $233 million, according to the last 13F filing, accounts for 1% of the fund’s total equity portfolio’s value, and makes it the largest hedge fund shareholder of the company – amongst the roughly 700 funds that we keep track of. Another prominent investor is Alexander Roepers’ Atlantic Investment Management, which last disclosed having upped its exposure to Triumph Group Inc (NYSE:TGI) by 965%, to 2.18 million shares.
The second company in this list just barely made it –because of its $5.08 billion market cap. We’re talking about Intercept Pharmaceuticals Inc (NASDAQ:ICPT), a development stage, biopharmaceutical company engaged in the development and commercialization of novel therapeutics to treat chronic liver disease, utilizing its proprietary bile acid chemistry. Mr. Halvorsen started a position in Intercept Pharmaceuticals Inc (NASDAQ:ICPT), with 454,917 shares, over Q1. On the opposite sidewalk, the largest hedge fund shareholder at the company, Samuel Isaly’s Orbimed Advisors, last disclosed (through a form 13D/A filed around mid-April) having shrank its exposure to Intercept Pharmaceuticals Inc (NASDAQ:ICPT), from 1.73 million shares, to 1.656 million shares. However, this holding is still the most valuable in the fund’s equity portfolio, accounting for almost 7% of its total value.
Another one of Viking Global’s top small-cap picks is Zynga Inc (NASDAQ:ZNGA), a $2.8 billion market cap social game services provider. This stock is also a newcomer at the fund’s equity portfolio. Its 28.45 million shares are worth roughly $122 million. Similar to the previous case, the largest hedge fund shareholder by the end of Q1, Steven Cohen’s SAC Capital Advisors declared later –on early-April, that it had considerably cut its exposure to the company, from 32.88 million shares, to 28.57 million shares. This makes John Lykouretzos’ Hoplite Capital Management the largest hedge fund shareholder of record, owning 32.49 million shares.
Fourth in this list is ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), a $2.25 billion market cap developer and marketer of small molecule drugs for the treatment of central nervous system disorders. Over Q1, Mr. Halvorsen’s fund upped its bets on Zynga Inc (NASDAQ:ZNGA) by 37%, and continued to boost its exposure over Q2. The fund now owns 4.958 million shares, according to its last 13D filing. Similar is Julian Baker and Felix Baker’s Barker Bros. Advisors’ case. The fund disclosed around mid-June that it had slightly increased its position in ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), and currently owns 20.5 million shares, worth about half a billion dollars.
Finally, there’s BlackBerry Ltd (NASDAQ:BBRY), a well-known designer, manufacturer and marketer of wireless solutions for the mobile communications market, with a market cap barely over $5 billion. Although Viking Global reduced its stake in BlackBerry Ltd (NASDAQ:BBRY) by 47% over Q1, its position is still quite big. Its 3.888 million shares are worth more than $31 million. Once again, Steven Cohen’s fund Advisors is amongst the hedge fund investors of BlackBerry Ltd (NASDAQ:BBRY), holding 11.24 million shares –a position started over the first quarter.
Disclosure: Javier Hasse holds no position in any stocks mentioned