2. General Electric Company (NYSE:GE)
Viking Global’s Stake Value: $1,704,348,000
Percentage of Viking Global’s 13F Portfolio: 4.94%
Number of Hedge Fund Holders: 57
General Electric Company (NYSE:GE) was a new arrival in Andreas Halvorsen’s Viking Global’s portfolio in Q3 2021, and the hedge fund increased its position in the company by 7% in the fourth quarter, holding more than 18 million shares, worth $1.70 billion, representing 4.94% of the total Q4 investments. General Electric Company (NYSE:GE) is an American multinational company focused on the aviation, power, renewable energy, and digital sectors.
On December 10, General Electric Company (NYSE:GE) announced a $0.08 per share quarterly dividend, in line with previous. The dividend was paid on January 25, to shareholders of record on December 21, 2021.
General Electric Company (NYSE:GE) disclosed that it is set to acquire Opus One Solutions Energy, a Canada-based software company helping electric utilities optimize their energy consumption, planning, and market management. The acquisition will enable General Electric Company (NYSE:GE) to get on board with rapid adoption of renewables and distributed energy resources.
Credit Suisse analyst John Walsh upgraded General Electric Company (NYSE:GE) on January 4 to Outperform from Neutral with a $122 price target. The company is separating into three public companies: Energy, Aviation, and Healthcare, and the analyst believes the recent selloff in the shares presents an opportunity to get positive.
Among the hedge funds tracked by Insider Monkey, 57 funds were bullish on General Electric Company (NYSE:GE) in the fourth quarter. Pzena Investment Management is one of the leading General Electric Company (NYSE:GE) shareholders as of December 2021, with a stake worth over $1 billion.
Here is what Vulcan Value Partners has to say about General Electric Company (NYSE:GE) in its Q3 2021 investor letter:
“During the quarter, we sold our positions in General Electric Co. General Electric is a company we followed for a long time. In the past, we removed GE from the MVP list due to management’s poor capital allocation decisions which resulted in value instability. Larry Culp, the former CEO of Danaher, became CEO of General Electric in 2018. The company implemented a vast restructuring program to simplify the industrial side of its business, sold off non-core assets, paid down debt with the proceeds, and drastically shrunk GE Capital. These restructuring activities allowed its world-class jet engine and healthcare businesses to shine through, and improved value stability. As a result, we added the company back to the MVP list. While the pandemic negatively impacted General Electric’s aviation business in the short run, it also gave us the opportunity to buy General Electric in the second quarter of 2020 with a substantial margin of safety. GE is a good example of a competitively entrenched, yet slower growing MVP business. As its stock price rose rapidly over the last year, its value growth did not keep up, and the price to value gap closed quickly. As our margin of safety diminished, we sold our position in GE and allocated it to more discounted companies.”
