In this article, we talk about the 10 blue chip stocks to buy now according to billionaire Andreas Halvorsen. If you wish to skip our detailed analysis of Halvorsen’s hedge fund performance and stock picks, go directly to 5 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen.
Andreas Halvorsen’s Viking Global had a 2021 to forget. The Viking Global Equities fund lost 4.5% in the year which saw the S&P500 gain more than 27%. This was only the fourth year since 1999 in which Halvorsen’s fund posted losses, a significant feat on Wall Street which highlights the billionaire’s investing genius, notwithstanding a few slumps. Explaining his worst year on record, the interview-shy investor briefed clients in a letter written in January that he had “underestimated the ongoing impact of Covid,” and bet wrongly that consumer spending would normalize again in 2021. Still, Halvorsen noted that the fund had maintained its positioning, as well as its stance that pandemic reopening would benefit many stocks in its portfolio, both in terms of fundamentals and a re-rating of multiples.
The fund’s biggest losers in the year were Peloton Interactive Inc. (NASDAQ:PTON), Coupa Software Inc. (NASDAQ:COUP) and Adaptive Biotechnologies Corp. (NASDAQ:ADPT), which lost more than 75%, 50% and 50% in 2021, respectively. However, Viking’s Global Opportunities Hybrid, which invests in both private companies and stocks, posted returns of nearly 20%, while its long-only strategy jumped 8.3% in the year. Halvorsen believes that private investment opportunities are “robust,” and noted that the Global Opportunities fund was being injected with new cash to jump on exciting opportunities.
Ole Andreas Halvorsen of Viking Global
Norwegian-born Andreas Halvorsen honed his craft under the tutelage of investing giant Julian Robertson, and is known as a ‘Tiger Cub’ for his affiliation with Robertson’s Tiger Management. As of the first quarter of 2022, Connecticut-based Viking Global has a total of $24.73 billion in assets under management (AUM), and holds positions in many prominent stocks such as T-Mobile US, Inc. (NYSE:TMUS), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT), along with others mentioned below.
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Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen
10. Centene Corporation (NYSE:CNC)
Viking Global’s Stake Value: $657.19 million
Viking Global’s 13F Portfolio: 2.65%
Number of Hedge Fund Holders: 60
Centene Corporation (NYSE:CNC) starts off our list of the best blue chip stocks to buy according to billionaire Andreas Halvorsen. It is a managed healthcare company which operates as an intermediary for government-sponsored and privately insured health care programs.
On June 21, Credit Suisse analyst A.J. Rice upgraded Centene Corporation (NYSE:CNC) to ‘Outperform’ from ‘Neutral’ with a price target of $88, up from $86. The analyst noted that an economic slowdown will likely result in some increase in Medicaid membership, and rising interest rates will also act as tailwinds for the company’s earnings. Centene Corporation (NYSE:CNC) recently announced a $3 billion addition to its existing share buyback program, and also raised its 2022 diluted earnings guidance by $0.05.
Hedge funds were seen loading up on Centene Corporation (NYSE:CNC) shares. At the end of March, 60 hedge funds were bullish on the company shares, as compared to 53 hedge funds a quarter earlier. With 7.8 million shares worth $657 million, Viking Global stood as the firm’s largest shareholder in the first quarter of 2022.
Along with T-Mobile US, Inc. (NYSE:TMUS), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT), Centene Corporation (NYSE:CNC) is one of the best blue chip stocks to buy according to Andreas Halvorsen.
9. Comcast Corporation (NASDAQ:CMCSA)
Viking Global’s Stake Value: $659.16 million
Viking Global’s 13F Portfolio: 2.66%
Number of Hedge Fund Holders: 78
Comcast Corporation (NASDAQ:CMCSA) is a diversified media and technology company headquartered in Pennsylvania. Halvorsen’s Viking Global owned 14.07 million shares of the company at the end of Q1 2022, worth $659 million and representing 2.66% of its total portfolio.
A total of 78 hedge funds from the Q1 database of Insider Monkey held positions in Comcast Corporation (NASDAQ:CMCSA) with a combined value of $7.12 billion. This is down from 80 hedge funds with $8.63 billion worth of positions in the company a quarter ago. First Eagle Investment Management was Comcast’s largest shareholder in the first quarter, with a $1.4 billion stake.
Daiwa analyst Jonathan Kees on July 1 initiated coverage of Comcast Corporation (NASDAQ:CMCSA) with an ‘Outperform’ rating and a $43 price target. The analyst is bullish on the company’s business diversification which he thinks can generate free cash flow and dividends “no matter the economic environment.” Kees also assessed that media names “should continue to deliver solid growth post lockdown.” Comcast Corporation (NASDAQ:CMCSA) has a $0.27 per share quarterly dividend, and its yield stands at 2.69% as of July 12.
Here is what ClearBridge Investments had to say about Comcast Corporation (NASDAQ:CMCSA) in its Q4 2021 investor letter:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
8. Chubb Limited (NYSE:CB)
Viking Global’s Stake Value: $684.74 million
Viking Global’s 13F Portfolio: 2.76%
Number of Hedge Fund Holders: 31
According to regulatory filings for the first quarter of 2022, Andreas Halvorsen held 3.2 million shares of Chubb Limited (NYSE:CB) valued at $684.7 million, and amounting to a 2.76% slice of his overall portfolio.
Based in Switzerland, Chubb Limited (NYSE:CB) deals in the provision of insurance and reinsurance products around the globe. The company announced a $0.83 per share quarterly dividend on June 16, which was payable to shareholders on July 8. It provides a yield of 1.71% as of July 12.
Jefferies analyst Yaron Kinar on July 12 reiterated a ‘Buy’ rating on Chubb Limited (NYSE:CB) shares and lowered the price target to $244 from $247. The analyst lowered future guidance for the P&C (property and casualty) insurance group in anticipation of a meaningful economic slowdown in 2023. Chubb Limited (NYSE:CB) stands as a beneficiary of rising interest rates, and has posted gains of 18.29% in the last 12 months as of July 12.
31 hedge funds out of the 912 tracked by Insider Monkey reported ownership of positions in Chubb Limited (NYSE:CB) at the end of Q1 2022, with a collective price tag of $1.81 billion. This is down from 34 hedge funds a quarter earlier.
Aristotle Capital Management, an independent/employee-owned investment management firm, talked about Chubb Limited (NYSE:CB) in its Q1 2022 investor letter. Here’s what was said:
“Our investment in Chubb began in the fourth quarter of 2015, shortly after ACE Limited announced it would acquire the Chubb Corporation, creating the largest global property and casualty insurance company by underwriting income. During our nearly seven-year holding period, the company’s combination progressed leading to the realization of main catalysts we had identified. These included cost savings, broadened product offerings and an expanded customer base, as well as enhanced distribution capabilities and improved pricing due to scale. In addition, Chubb successfully grew its profitable high-net-worth personal lines. While we still consider Chubb to be a high-quality business, few catalysts remain after what was, in our opinion, a remarkable run of successful business execution. As such, we decided to step aside in favor of what we believe to be a more optimal investment in Blackstone.”
7. Fortive Corporation (NYSE:FTV)
Viking Global’s Stake Value: $733.18 million
Viking Global’s 13F Portfolio: 2.96%
Number of Hedge Fund Holders: 43
Fortive Corporation (NYSE:FTV) operates as diversified industrial technology conglomerate based in the United States. It was formed in 2016 after being spun-off from Danaher Corporation (NYSE:DHR). Halvorsen owned 12.03 million shares of Fortive Corporation (NYSE:FTV) in the first quarter, amounting to a $733 million value and a 2.96% portion of his overall portfolio. This was a 42% increase in holding over the previous quarter, and established Viking Global as the largest shareholder of Fortive Corporation (NYSE:FTV) in the first quarter.
On July 8, Barclays analyst Julian Mitchell lowered the firm’s price target on Fortive Corporation (NYSE:FTV) to $68 from $74 and maintained an ‘Overweight’ rating on the company shares. The analyst noted that multi-industry demand is weakening, and he expects 25-30% of the firms in his coverage to lower 2022 guidance, up from 15% in the first quarter.
43 hedge funds were long Fortive Corporation (NYSE:FTV) at the end of the first quarter, with $2.39 billion in combined stakes. This shows a positive trend from the previous quarter where 34 hedge funds owned positions in the company.
6. Parker-Hannifin Corporation (NYSE:PH)
Viking Global’s Stake Value: $898.19 million
Viking Global’s 13F Portfolio: 3.63%
Number of Hedge Fund Holders: 39
Parker-Hannifin Corporation (NYSE:PH) is an Ohio-based company which provides motion and control technologies for the mobile, industrial, and aerospace markets around the world. It has a $1.33 per share quarterly dividend, with a 2.11% yield as of July 12. The company has consistently increased its dividend for the last 66 years in a row, making it one of the best blue chip stocks to buy.
Mizuho analyst Brett Linzey on May 6 maintained a ‘Neutral’ rating on Parker-Hannifin Corporation (NYSE:PH) shares and lowered the price target to $290 from $305, after the company beat Q1 results and lowered guidance. Barclays analyst Julian Mitchell in July gave Parker-Hannifin Corporation (NYSE:PH) an unchanged ‘Overweight’ rating and a revised price target of $329, down from $335. The analyst assessed that softening industrial demand would lead to many names in the industry lowering future guidance.
With 3.16 million shares worth $898 million, Parker-Hannifin Corporation (NYSE:PH) stock represented 3.63% of Andreas Halvorsen’s total Q1 portfolio. The billionaire also ranked as the firm’s largest shareholder. In total, 39 hedge funds were bullish on PH shares at the close of the first quarter, with $1.31 billion in combined positions.
Here is what Oakmark Funds, an investment management firm, has to say about Parker-Hannifin Corporation in its Q1 2021 investor letter:
“Parker Hannifin approached our estimates of intrinsic value and were, therefore, eliminated during the period. The company was a longstanding investment of the Fund and produced successful outcomes. We believe Parker Hannifin, one of our longest tenured positions, is a high-quality, well-managed industrial with strong competitive positions in good end markets. However, after the market price reflected these positives, we elected to sell to pursue more attractive alternatives that were priced at steeper discounts to our estimates of intrinsic value.”
In addition to Parker-Hannifin Corporation (NYSE:PH), investors are piling into stocks such as T-Mobile US, Inc. (NYSE:TMUS), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT).
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