Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Wayfair Inc (W): Viking Global Discloses 12.6% Stake In Recently IPOed Company

Andreas Halvorsen’s Viking Global filed, today, a Schedule 13G form with the SEC disclosing a new position in Wayfair Inc (NYSE:W). According to the filing, the fund owns 1.75 million shares of Class A Common Stock, which account for 12.6% of the company’s Class A shares outstanding.

Viking Global is a hedge fund founded in 1999 by Norwegian Tiger cub Andreas Halvorsen, along with former Tiger Global employees David Ott and Brian Olson. On 2005, Mr. Olson left Viking; five years later, Mr. David Ott did the same. Between June 2005 (when Ott became the CIO of Viking) and March 2010, Viking Global returned 119% vs. 11% for the MSCI World Index. Nonetheless, lost 1.9% in 2008, but then gained 20% in 2009, and 3.8% in 2010.

Andreas Halvorsen

Wayfair Inc (NYSE:W) is a $2.17 billion market cap e-commerce business that went public on October 2. It was the first e-commerce company that IPOed since Alibaba Group Holding Ltd (NYSE:BABA)’s NYSE listing about one moth ago. Wayfair Inc (NYSE:W)’s initial public offering comprised 12.65 million shares of its Class A common stock, sold at a price to the public of $29.00 per share. The offering was closed on October 7; 10.5 million shares were sold by Wayfair, and the remaining 2.15 million, by certain selling stockholders.

Despite a strong IPO, Wayfair Inc (NYSE:W)’s stock is down since the closing of the offering, and currently trades well below the IPO price of $29.00 per share, at approximately $26.18 per share. Despite the price drop, Wedbush analyst Seth Basham initiated coverage of the company on October 9, with an “Outperform” rating and a $40 price target for the long-term. His bullishness is based on the belief that the company offers a “compelling value position,” which will drive revenue growth.

Another major institutional investor that disclosed a big stake in Wayfair Inc (NYSE:W) is Morgan Stanley (NYSE:MS). This financial services company acknowledged holding 659,760 shares of Common Stock, which represent about 6% of the company’s outstanding stock.

But, why should you trail Mr. Halvorsen’s pick? Well, his top equity position, Walgreen Company (NYSE:WAG) and his largest consumer cyclical bet (Wayfair is also a consumer cyclical stock), Lowe’s Companies, Inc. (NYSE:LOW) have both managed to outperform the S&P 500 Index, year-to-date.

Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.