is one of the former prot�g�es of
at his hedge fund Tiger Management, called "Tiger Cubs."
Halvorsen left Tiger Management and, along with several
colleagues, founded the long-short equity hedge fund VikingGlobal
in 1999. Since then, the low-profile manager's fund has produced
an average annual return of 18.2%, and assets under management
have ballooned to $16 billion.
Halvorsen said in his first-quarter letter that he possibly had
been too cautious during the quarter, according to Reuters. In
the second quarter, he bought 21 new stocks, the largest of which
are: State Street Corporation (
), Eastman Chemical Company (
), Pfizer Inc. (
), Eli Lilly (
) and W.R. Grace & Co. (
State Street Corporation (
Viking invested 2.7% of their portfolio, or 7,519,669 shares,
into largest new holding State Street Corporation. The share
price was approximately $43.50. State Street's stock collapsed in
2008, but has recovered 31% over the last year.
State Street is the world's top financial services provider to
institutional investors with $22.4 trillion in assets under
custody and administration and $1.0 trillion in assets under
management as of June 30, 2012.
State Street's revenue and free cash flow has been increasing for
the past three years. In the second quarter of 2012, the
company's earnings per share were $0.98, down 2% from $1.00 in
the second quarter of 2011 and up 15% from $0.85 in the second
quarter of 2011, while net income increased for the third
straight quarter. The company said it has been experiencing a
difficult economic environment, particularly internationally.
The company also announced that it would acquire Goldman Sachs'
hedge-fund administration business in a deal it expects to close
in the fourth quarter of 2012.
State Street Corporation has a market cap of $20.48 billion; its
shares were traded at around $41.9 with a P/E ratio of 11.2 and
P/S ratio of 2.1. The dividend yield of State Street Corporation
stocks is 2.3%. State Street Corporation had an annual average
earnings growth of 1% over the past 10 years.
Eastman Chemical Company (
Viking acquired 4,763,400 shares of Eastman Chemical Company at
an average price of $49 in the second quarter. Since then, the
stock has advanced 13% to new 52-week highs.
Eastman Chemical Company is a global chemical company with a
broad portfolio of chemical, plastic and fiber products. In the
second quarter, Eastman Chemical saw slight revenue declines
across all of its segments. It also completed the purchase of
Solutia, a company that produced $520 million in revenue I the
second quarter, which should meaningfully add to future growth
and cash flow.
Eastman Chemical Company has a market cap of $7.68 billion; its
shares were traded at around $55.48 with a P/E ratio of 12.3 and
P/S ratio of 1.1. The dividend yield of Eastman Chemical Company
stocks is 1.9%. Eastman Chemical Company had an annual average
earnings growth of 6.1% over the past 10 years. GuruFocus rated
Eastman Chemical Company
the business predictability rank of 2-star
Pfizer Inc. (
Halvorsen bought 6,809,900 shares of Pfizer Inc. at an average
price of $22. Since then, the stock has advanced 9%. Pfizer Inc
is a research-based, global pharmaceutical company that discovers
and develops innovative, value-added products.
Pfizer's second-quarter revenues decreased 15% in the U.S. due to
the loss of exclusivity for its top-selling drug, Lipitor.
Emerging markets was one of its fastest-growing units, with
revenues up 14% from second-quarter 2011, mainly due to higher
sales in China and Russia after launching more targeted
promotional efforts. The biggest changes happening at the company
are a pending sale of its nutrition business and a possible
spin-off of its animal health business, which could IPO in
Pfizer Inc. has a market cap of $178.14 billion; its shares were
traded at around $23.93 with a P/E ratio of 10.3 and P/S ratio of
2.6. The dividend yield of Pfizer Inc. stocks is 3.7%. Pfizer
Inc. had an annual average earnings growth of 0.5% over the past
Eli Lilly (
Halvorsen purchased 3,492,300 shares of Eli Lilly at an average
price of $41. The stock has since gained 3%.
Eli Lilly and Company discovers, develops, manufactures and sells
pharmaceutical products. The company's revenue has grown every
year for the last decade, and its last two-years of earnings were
its highest in the same period.
Similar to Pfizer, Lilly lost revenue in the second quarter due
to patent expirations of some of its drugs. Global revenue
declined 10% to $5.6 billion, driven by the expiration of its
patent on Zyprexa, its highest-selling drug, sales of which
dropped 73%. Other areas were strong. Growth in China and Japan
was 28% and 15%. Its Elanco Animal Health segment's revenue grew
Lilly raised its 2012 earnings per share guidance to a range of
$3.29 to $3.39 on a reported basis, from the previously expected
$3.14 to $3.29.
Eli Lilly & Co. has a market cap of $49.23 billion; its
shares were traded at around $42.301 with a P/E ratio of 11.3 and
P/S ratio of 2. The dividend yield of Eli Lilly & Co. stocks
is 4.6%. Eli Lilly & Co. had an annual average earnings
growth of 5.3% over the past 10 years. GuruFocus rated Eli Lilly
the business predictability rank of 2.5-star
W.R. Grace & Co. (
Halvorsen purchased 2,717,594 shares of W.R. Grace & Co. at
an average price of $54, which equates to 3.45% of shares
outstanding. Since then, the stock has gained 9%.
W.R. Grace & Co. produces specialty chemicals. They primarily
operate through the following two business segments: Davison
Chemicals and Performance Chemicals. In the second quarter, the
company's net income declined to $69.3 million from $74.8 million
the prior year. The company's greatest area of growth were Asia
Pacific, which increased 11.2%, and Latin America, which rose
12.9%. North America and Europe, Middle East and Africa sales
declined 4% and 4.8%, respectively. Sales to emerging markets
grew 13.3%, representing 36.3% of sales.
W.R. Grace & Co. has a market cap of $4.46 billion; its
shares were traded at around $58.97 with a P/E ratio of 14.7 and
P/S ratio of 1.4. W.R. Grace & Co. had an annual average
earnings growth of 6.7% over the past 10 years.
Andreas Halvorsen's largest holdings are Priceline.com (
), MasterCard (
) and Visa (
). See his portfolio here. Also check out the Undervalued Stocks,
Top Growth Companies and High Yield stocks of Andreas
Halvorsen.About GuruFocus: GuruFocus.com tracks the stocks picks
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