In this article, we shall be going over the 5 Best Stocks to Buy Now According to Billionaire Andreas Halvorsen. To read our detailed analysis of Halvorsen’s history, his investment strategy and hedge fund performance, go directly to 10 Best Stocks to Buy Now According to Billionaire Andreas Halvorsen.
5. Brookfield Asset Management Inc. (NYSE:BAM)
Viking Global Investors’ Stake Value: $922.4M
Percentage of Viking Global Investors’ 13F Portfolio: 3.72%
Number of Hedge Fund Holdings: 35
Based in Brookfield Place, Toronto, Brookfield Asset Management Inc. (NYSE:BAM) is a Canadian multinational, and one of the largest alternative investment management companies in the world, with over $725 billion of assets under management in 2022. It focuses on direct control investments in real estate, renewable power, infrastructure, credit and private equity, and is next on Halvorsen’s list of the 5 best stocks to buy now. Halvorsen’s Viking Global is the largest stakeholder in Brookfield Asset Management Inc. (NYSE:BAM), owning over 16 million shares worth at around $922.4 million. This is a result of Halvorsen decreasing his hold over the stock by 8%, with Brookfield Asset Management Inc. (NYSE:BAM) making up for 3.72% of Viking Global’s Q1 2022 investment portfolio. Investor interest in the stock has seen a marked increase in the first quarter of 2022, with 35 hedge funds long the stock, compared to 29 a quarter ago.
Saltlight Capital, an asset management firm, published their Q1 2022 investor letter, a copy of which can be obtained here. They mentioned Brookfield Asset Management Inc. (NYSE:BAM) and this is what they had to say:
“During times like this, it is always helpful to remember what your portfolio is built with. One company that we’ve alluded to in the past is Brookfield Asset Management (NYSE:BAM). We’ve been invested in BAM across our various funds since 2019 and could not describe a more ‘resilient, indispensable and durable’ portfolio company. BAM is one of the largest alternative asset managers in the world, but it has some nuances that make it screen poorly (we’ll get into that). It started life as an industrial conglomerate called Brascan in Canada and so in line with general Canadian culture is understated and stays out of the limelight.
Bruce Flatt has been the CEO for over two decades and is the type of manager that we seek to partner with: honest, trustworthy, and extremely capable. We highly recommend watching these two videos: a Google talk in 2018 and this David Rubenstein interview to get a sense of Flatt. Importantly, BAM is not just about Flatt and his singular investing skills as many asset managers are. This is a widely scaled business. We’ve been impressed with the caliber of up-and-coming executives operating the individual businesses which give us confidence that the BAM culture will be retained for many decades to come.
BAM is unique in that it is an asset manager of third-party capital (called Limited Partners or LPs) but it also co-invests with its investors using its own capital. It certainly eats its own cooking (something that we can resonate with). Therefore, the intrinsic value should be comprised of invested capital plus the discounted value of future fee income. On top of this, if they generate outsized returns, they earn performance fees over an agreed-upon hurdle rate (called “carried interest”). BAM has an enviable track record, but a big part of their differentiation is that they run an internal operating business as well. Alongside investing staff, they have operators, engineers and domain experts that can optimize the operations of their investments. This allows them to buy cheap ‘fixer uppers’, send in their operators and re-sell them at a premium valuation. This is their secret sauce.”
4. Microsoft Corp. (NASDAQ:MSFT)
Viking Global Investors’ Stake Value: $1.02B
Percentage of Viking Global Investors’ 13F Portfolio: 4.13%
Number of Hedge Fund Holdings: 259
Headquartered in Redmond, Washington, Microsoft Corporation (NASDAQ:MSFT) is an American multinational technology corporation which produces and develops computer software, consumer electronics, personal computers, and other services, and is one of the Big 5 American IT companies.
Microsoft Corporation (NASDAQ:MSFT) makes up for 4.13% of Halvorsen’s 13F investment portfolio for Q1 2022, with the hedge fund billionaire owning over 3.3 million shares worth over $1.02 billion.
Carillon Tower Advisors mentioned Microsoft Corporation (NASDAQ:MSFT) in their Q1 2022 investor letter. This is what they said:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft (NASDAQ:MSFT) reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”
3. General Electric Co. (NYSE:GE)
Viking Global Investors’ Stake Value: $1.17B
Percentage of Viking Global Investors’ 13F Portfolio: 4.73%
Number of Hedge Fund Holdings: 51
General Electric (NYSE:GE) is an American multinational conglomerate based in Boston, Massachusetts. Founded in 1892, the company operates in several sectors including GE Healthcare, aviation, power, renewable energy and locomotives. General Electric (NYSE:GE) ranked on the Fortune 500 in 2020, as the 33rd largest company in the US by gross revenue. Halvorsen’s Viking Global has a stake value of $1.17 billion in the stock, with General Electric (NYSE:GE) making up for nearly 4.73% of Halvorsen’s 13F portfolio. The hedge fund billionaire owns 12.8 million shares, a result of Viking Global decreasing their hold over the stock by 30%.
2. Amazon Com Inc. (NASDAQ:AMZN)
Viking Global Investors’ Stake Value: $1.4B
Percentage of Viking Global Investors’ 13F Portfolio: 5.57%
Number of Hedge Fund Holdings: 271
As of the first quarter of 2022, Ken Griffin’s Citadel Investment Group is the largest shareholder in Amazon (NASDAQ:AMZN), having a stake value of over $13.1 billion. Viking Global increased their stake in Amazon (NASDAQ:AMZN) by 52%, having a cumulative stake value of almost $1.4 billion.
Amazon Com Inc. (NASDAQ:AMZN) was mentioned by Weitz Investment Management, an investment management firm, in their Q1 2022 investment letter, a copy of which can be obtained here. This is what they had to say:
“Amazon.com’s (NASDAQ:AMZN) stock was down modestly in the quarter, but opportunistic purchases helped the position contribute positively to the Fund. Our index short positions against ETFs tracking market indexes provided helpful ballast during the first quarter drawdown but were otherwise detractors for the fiscal year. During the quarter, we covered roughly 20% of our S&P 500 short and 50% of our Nasdaq 100 short at progressively lower prices. Among our long equities, we added materially to high-conviction holdings Amazon.com.”
1. T-Mobile US Inc. (NYSE:TMUS)
Viking Global Investors’ Stake Value: $1.7B
Percentage of Viking Global Investors’ 13F Portfolio: 6.96%
Number of Hedge Fund Holdings: 91
T-Mobile US Inc. (NYSE:TMUS) is a Bellevue-based American wireless network operating company, and is the second largest wireless carrier in the US. T-Mobile US Inc. (NYSE:TMUS) provides wireless voice and data services in the US and was named as the number one American wireless carrier in 2015 by Consumer Reports. As of the first quarter of 2022, Halvorsen’s Viking Global is the largest stakeholder in the company, owning more than 13.4 million shares valued at around $1.7 billion. This means that T-Mobile US Inc. (NYSE:TMUS) makes up for 6.96% of Halvorsen’s 13F investment portfolio, with the billionaire strengthening his hold over the stock by 3%.
Investor interest in T-Mobile US Inc. (NYSE:TMUS) in Q1 2022 has risen as compared to the previous quarter, with the number of hedge funds which have stakes in the company increasing from 86 to 91. This may be a result of T-Mobile’s (NYSE:TMUS) behemoth 5G network, which has increased its customer base to over 315 million in the US.
ClearBridge Investments mentioned T-Mobile US Inc. (NYSE:TMUS) in their Q4 2021 investor letter. This is what they said:
“As mentioned, the communication services sector has come under some pressure, and irrational pricing competition has negatively impacted wireless industry growth and profitability of late, weighing on T-Mobile. Faced with these headwinds, and with pressure from other wireless carriers and cable companies that could cause the company to cede share in subscriber growth in 2022, we exited our position in the fourth quarter.”
