Andreas Halvorsen Dives Into Ginkgo Bioworks, Adds To Humana

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Summary

  • Guru also entered a new position at McDonald’s.
  • It was sold to Aon.
  • Halvorsen added to his Humana stake, but curbed Amazon’s stake.

Viking Global Leader Andreas Halvorsen ,trades, portfolio) disclosed its portfolio for the third quarter in November.

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In addition to considering cyclical and secular industry trends, Guru’s Connecticut-based hedge fund selects stocks based on business fundamentals and the management team’s understanding. Halvorson was a former patron of Tiger Management Julian Robertson ,trades, portfolio,

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During the three months ending September 30, the investor entered 25 new positions, exited 17 shares and added or trimmed several other existing holdings. His most notable trades include Ginkgo Bioworks Holdings Inc. new stake in ,DNA, financial) and McDonald’s Corp.
Delhi Municipal Corporation
, ,Delhi Municipal Corporation, financial), Disinvestment of AON Plc
aon
,aon, financial) position, increased bets on Humana Inc.
Gunjan
,Gunjan, financial) and a decrease in Amazon.com
AMZN
Inc. ,AMZN, financial) hold.

Ginkgo Bioworks

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After investing in the company in an initial funding round in 2015, Halvorson disclosed a 302.9 million-share stake in Ginkgo Bioworks (DNA, financial), dedicating 9.77% of the equity portfolio to the holdings. The stock traded at an average price of $12.17 per share during the quarter.

This is now his biggest post.

The Boston-based biotech company, which specializes in using genetic engineering to produce bacteria with many industrial applications, entered into a merger agreement with special-purpose acquisition company Soaring Eagle Acquisition Corp. ,SRNGU, financial) in May. The deal officially closed on 16 September. Gingko Bioworks has a market cap of $17.66 billion; Its shares were trading at around $12.05 on Wednesday with a price-book ratio of 11.42 and a price-sales ratio of 202.38.

Since its market debut on September 17th, the stock is down about 1.05%.

Founded in 2008 by graduates of the Massachusetts Institute of Technology, the company is building a platform that enables the design and development of organisms that can produce valuable biological products in a variety of markets, from cosmetics and agriculture to industrial chemicals and pharmaceuticals. could.

Halvorsen’s Viking Global currently holds 15.48% of Gingko’s outstanding shares, making it the largest Guru shareholder. Other gurus are investors Bailey Gifford ,trades, portfolio, Katherine Wood ,trades, portfolio) And Chase Coleman ,trades, portfolio,

McDonald’s

Guru bought 2.9 million shares of McDonald’s (Delhi Municipal Corporation, financial), allocating 2.01% of the equity portfolio to the position. During the quarter, shares traded at an average price of $238.61 each. He previously ran out of stock in the first quarter of 2016.

The iconic fast-food chain, headquartered in Chicago, has a market capitalization of $185.65 billion; Its shares were trading around $249.43 on Wednesday with a price-earnings ratio of 25.62 and a price-sales ratio of 8.28.

gf value line
Pain
It suggests that the stock is currently undervalued based on historical ratios, past performance and projections of future earnings.

GuruFocus rated McDonald’s financial strength 4 out of 10. Apart from ample interest coverage, the company has a strong Altman Z-score of 4.46 indicating that it is in good standing. Return on capital invested also reduces the weighted average cost of capital, which means that value is being created as the company grows.

The company’s profitability outperforms with an 8 out of 10 rating, which is an expanded operating margin, strong return on equity, strong return on assets and capital that outperforms most competitors and a high Piotrovsky rating of 8 out of 9. There is an F-score, which indicates business conditions. are healthy. Although revenue per share has declined in recent years, McDonald’s still has an estimated rank of one out of five stars. According to GuruFocus, companies with this rating give an average annual return of 1.1% over a period of 10 years.

Of the gurus who have invested in McDonald’s, Halvorson holds the largest stake with 0.40% of the outstanding shares. Ray Dalio ,trades, portfolio), Pioneer Investments, Jim Simonso ,trades, portfolio) ‘Renaissance Technology, Ken Fisher ,trades, portfolio, Steven Cohen ,trades, portfolio, Primecap Management ,trades, portfolio) And Bailey Gifford ,trades, portfolio), among many others, also has position in stock.

aon

The investor sold his remaining 2.9 million shares of Aon (aon, financial), impacting the equity portfolio by -2.11%. The stock traded at an average per-share price of $268.54 during the quarter.

GuruFocus estimates that Halvorsen made 18.63% growth on investments over his lifetime.

The British insurance company offering a range of financial risk-mitigation products has a market cap of $65.45 billion; Its shares were trading around $297.84 on Wednesday with a price-earnings ratio of 75.39, a price-book ratio of 29.77 and a price-sales ratio of 5.61.

According to the GF value line, the stock is currently marginally overvalued.

Aon’s economic strength has been rated 4 out of 10 by GuruFocus. Although the company has issued about $2 billion in new long-term debt over the past three years, it is still at a manageable level due to substantial interest coverage. However, a low Altman Z-score of 1.92 indicates that it is under some pressure as a result of record losses in operating income in recent years. WACC also assumes ROIC, which indicates a struggle with price formation.

The company’s profitability outperformed, garnering an 8 out of 10 rating, driven by expanding operating margins and strong returns that outperformed more than half of its industry peers. It also has a moderate Pietroski F-score of 4, indicating that business conditions are typical for a stable company. Despite posting consistent earnings and revenue growth, the 3.5-star predictable rank is eyeing. GuruFocus says that companies in this rank give an average annual return of 9.3%.

with 2% stake, Warren Buffett ,trades, portfolio) is the largest guru shareholder of the company. first pacific advisor ,trades, portfolio, Steven Romick ,trades, portfolio) And Wallace Weitz ,trades, portfolio) also holds a major stake in Aon.

Human

Halvorsen expands his stake in Humana, impacting equity portfolio by 2.62% (Gunjan, financial) up 411.17%, buying 2.42 million shares. During the quarter, the stock traded at an average price of $424.73 per share.

Guru now holds a total of 3 million shares, representing 3.26% of the equity portfolio and is his fifth largest holding. GuruFocus data shows that they have achieved an estimated 3.45% on the investment, which was set in the second quarter.

The Louisville, Kentucky-based health insurance company has a market capitalization of $55.11 billion; Its shares were trading around $428.45 on Wednesday, with a price-earnings ratio of 20.71, a price-book ratio of 3.41 and a price-sales ratio of 0.68.

Based on the GF value line, the stock currently appears to be fairly valuable.

GuruFocus rated Humana’s financial strength 5 out of 10. Despite issuing nearly $5 billion in new long-term debt over the past three years, it’s at a manageable level because the company has substantial interest coverage. The ROIC is also higher than the WACC, indicating that value is being created.

The company’s profitability received a 7 out of 10 rating, driven by strong margins and returns, which outperform most competitors. The Humana also has a low Piotrowski F-score of 3, suggesting that operations are in poor shape. Despite steady earnings and revenue growth, the eye is on a four-star predictable rank. Data from GuruFocus shows that companies in this rank give an average annualized return of 9.8%.

Halvorson is the largest Guru shareholder of Humana with a 2.34% stake. NS Vanguard Health Care Fund ,trades, portfolio) And Diamond Hill Capital ,trades, portfolio) also has significant positions in the stock.

Amazon.Com

With an impact of -2.83% on the equity portfolio, Guru sold Amazon.com (AMZN, financial) 57.21% stake with sale of 271,309 shares. Shares traded at an average price of $3,451.22 during the quarter.

Halvorsen now holds a total of 202,908 shares, which is 1.85% of the equity portfolio. GuruFocus data indicates that it has achieved an estimated 50.54% return on investment.

The e-commerce giant, headquartered in Seattle, has a market cap of $1.79 trillion; Its shares were trading around $3,529.61 on Wednesday with a price-earnings ratio of 69.01, a price-book ratio of 14.84 and a price-sales ratio of 3.95.

The GF value line shows that the stock is currently significantly valued.

Amazon’s financial strength is rated 6 out of 10 by GuruFocus. In addition to a comfortable level of interest coverage, the company has a strong Altman Z-Score of 5.86, indicating that it is in good standing, even as assets are growing rapidly, with revenues growing. Value creation is also taking place as ROIC has surpassed WACC.

The company’s profitability achieved a rating of 8 out of 10 based on expanding operating margins, strong returns that top most industry peers, and a high Piotrowsky F-score of 7. As a result of consistent earnings and revenue growth, Amazon has a…

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