Viking Global’s Top Non-Tech Holdings

VIKING GLOBALViking Global is a one of the foremast Tiger Cubs, offshoots of Julian Robertson’s Tiger Management. It was the brainchild of Andreas Halvorsen, David Ott, and Brian Olson. The strategy is long/short global equity with a bottom-up stock picking approach. Below are its top non-tech holdings.

Invesco (NYSE: IVZ) is a global asset management firm with $672.8 billion of AUM as of March 31, 2012. It is among the most global and diversified asset managers out there that has allowed it to effectively scale products like the Invesco Balanced Risk Allocation strategy (ramped up from $5 billion of AUM to about $13 billion in two quarters). The company has reported five straight quarters of positive core business flows in a time when the industry is seeing outflows in actively managed US equities, and we expect that global equities and IBRA will contribute to continued inflows. We feel that management have been effectively managing its capital between investments in US distribution and branding as well as share repurchases/dividend increases—the recently announced annual dividend increase to $0.69 was substantial and generates a 3.2% yield for investors. And from a valuation standpoint, we think it’s very reasonable at 11.5x 2012 P/E.

LyondellBasel Industries (NYSE: LYB) is a global petrochemical company held by Jon Bauer, Christopher Pucillo, Mark McGoldrick, and Jamie Zimmerman. Our view on LYB is largely valuation driven. It trades at ~3.8x times 2013 EV/EBITDA yet has a ~16% 2013 projected FCF yield, and trades below replacement cost. The market is pricing LYB as though there will be a decline in industry profitability in the near-term when in fact, we think it is simply due to an inventory drawdown. We also identify a couple upcoming catalysts. LYB is set to be the next chemical company to become included in the S&P 500 index (timing unknown) and it has infrastructure in place for transport and fractionation of ethane to the gulf. We think ethane prices will move lower down to around $0.40 to $0.50 per gallon as bottleneck issues in fractionation capacity and logistics are solved.

Mastercard (NYSE: MA) With the General Court in Luxembourg ruling against MA’s challenge on an European Commission (EC) ban on cross-border interchange fees, we see more headline risk in MA than Visa. MA is appealing the decision, but either way we do not foresee a negative financial impact to MA since it isn’t a revenue source for the network models. Interchange refers to a fee that merchants pay to the card issuer whereas MA makes money from processing fees. This has been an ongoing back and forth with European regulators since 2007, when the EC felt that MA’s European cross-border interchange fees violated EU competition law. We continue to monitor the situation but are more focused on the merchant lawsuit.

Valeant Pharmaceuticals (NASDAQ: VRX) took a tumble in early May after Q1 results. However, we still think that VRX is among the best companies in the Specialty Pharmaceuticals (Spec Pharma) space.  First off, VRX offers an 8% organic growth spec pharma platform, dramatically better than big pharma players and among the best in the spec pharma group. The company’s organic growth strength showed in its Q1 with its differentiated strategy delivering 11% y-o-y versus 4% for its peers, driven by US dermatology and emerging markets strength. We also view VRX’s diversification very favorably as a way to mitigate risk. About a third of VRX’s revenues come from emerging market countries and only half from the slower growing US market versus ~87% for its spec pharma comps. Additionally, no one product in its portfolio is more than 7% of its revenues. So in conclusion, VRX offers organic growth and diversification far exceeding that of its peers. It’s also cheap from on a relative valuation basis, trading at ~9.5x 2013 earnings versus its ~9.7x for its peers. And at ~9.5x, VRX trades below its historical 11.0x to 14.0x range.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!