Andreas Halvorsen (Viking Global) Trading Strategy & Philosophy

Ole Andreas Halvorsen has built Viking Global Investors into one of the world’s top hedge funds.

Known for his low profile and precise strategies, Halvorsen and his firm manage approximately $48 billion, balancing between public equity investments and a significant private equity portfolio, a similar hybrid approach to other Tiger Cubs like Chase Coleman.

With his disciplined background as a Norwegian Navy special forces operative and a top-tier background in the United States, Halvorsen crafted an approach to markets that sets Viking Global apart.

Key Takeaways – Andreas Halvorsen (Viking Global) Trading Strategy & Philosophy

• Diversification is Core – Halvorsen balances public and private investments, combining stable cash generators in public markets with high-growth, transformative companies in private markets to reduce risks and improve risk/return ratios.
• Long/Short Equity Expertise – Viking uses a disciplined long/short strategy, profiting from undervalued opportunities while shorting overvalued stocks. Absolute return strategies are generally demanded to return positively regardless of environment.
• Private Market Growth Engine – With $15 billion in private equity, Viking invests in healthcare, life sciences, and enterprise software, targeting breakthrough innovations with long-term potential.
• Fundamentals Over Fads – Viking prioritizes companies with solid fundamentals, sustainable advantages, and significant growth potential. They avoid speculative trends.
• Discipline and Adaptability – Halvorsen’s military background gives a unique type of decision-making and adaptability.

The Genesis of Viking Global Investors

A Military Mindset in Finance

Halvorsen’s early career as a Marinejeger Kommandoen operative (Norway’s equivalent to the Navy SEALs) shapes his disciplined leadership style.

The training and strategic thinking required in special forces have translated into his market philosophy.

He emphasizes preparation, adaptability, and precision in decision-making.

Saying discipline is important sounds clichéd for traders and investors, but it’s still heavily underrated.

Maintaining composure, sticking to a strategy, and avoiding impulsive decisions are critical.

Education

After leaving the Navy, Halvorsen pursued higher education in the US.

He graduated from Williams College and then Stanford’s Graduate School of Business.

Halvorsen founded Viking Global Investors in 1999 after a strong early career in finance.

Having honed his skills at Morgan Stanley and Julian Robertson‘s Tiger Management, he decided to strike out on his own.

The name Viking Global, along with its emblem of a Nordic longship, is a function of Halvorsen’s Norwegian heritage and an ode to an ambitious, strategic, and conquering approach to markets. Plus, the courage to chart one’s own course.

Market Philosophy

Many of Halvorsen’s contemporaries lean heavily into technology and internet companies.

But Viking’s philosophy is more nuanced and diversified – i.e., leaning more toward generalization over specialization.

Halvorsen’s approach is guided by several key features:

Balanced Diversification

Rather than focusing exclusively on high-growth sectors like tech, Viking has developed a strategy that includes:

• Public Markets – With ~$29 billion in assets under management in public equities, Viking carefully selects companies with strong fundamentals. While technology giants like Amazon and Visa have contributed to past returns, the firm emphasizes value-driven stock selection across sectors. They’ll also short in the public equity book.
• Private Investments – Viking manages a private portfolio worth over $15 billion, spread across more than 75 companies. This arm focuses on sectors such as healthcare, life sciences, enterprise software, and sustainable materials. Viking’s philosophy is to identify breakthrough technologies and companies with transformative potential.

So, basically the public markets portfolio focuses on more stable cash generators – along with making money on the short side – and the private investments are more of the growth engine of the portfolio.

Naturally, they’ll seek out higher returns in private markets for locking their money up in illiquid investments.

It’s also a way to keep (reported) risk in better check as private investments aren’t marked to market.

A Long/Short Equity Strategy

Viking’s core strategy in the public markets revolves around long/short equity.

Halvorsen and his team identify companies they believe are undervalued by the market (long positions) while also betting against companies they perceive as overvalued (short positions).

This allows them to generate returns regardless of the overall market direction.

They dig deep into companies’ financials, management teams, and competitive landscapes to develop a strong understanding of their intrinsic value.

Bullish positions are the mainstay of their equity portfolio, they also take advantage of market downturns, as they did in 2020 and 2022.

In 2023, Viking Global delivered $6 billion in aggregate returns for investors, ranking third worldwide for absolute returns.

Health and Technology: The Pillars of Private Equity

Viking’s private equity targets show a deliberate emphasis on industries with high growth potential and societal impact.

Halvorsen’s team targets:

Healthcare and Life Sciences

Viking invests in biopharma and medical technologies, which aim to develop breakthrough therapies.

The goal is to create significant long-term value by addressing unmet medical needs.

Enterprise Software

Viking prioritizes midstage B2B enterprise software companies.

This focus on software shows the firm’s preference for scalable business models with recurring revenue streams, which can weather economic unknowns.

Sustainable Materials and Cybersecurity

Investments in companies like Evocative (sustainable materials) and Arctic Wolf (cybersecurity) align with future-facing industries that combine profitability and growth with purpose.

The Private Equity Advantage

Viking Global’s prowess extends beyond the public markets.

They manage a significant private equity portfolio, currently valued at approximately $15 billion.

This side of the business focuses on companies that are not yet publicly traded, with a particular emphasis on healthcare, life sciences, and biopharma.

This focus on healthcare isn’t just about chasing returns; it’s about investing in innovation.

Viking seeks companies developing “breakthrough therapies and technologies.” They are looking for the disrupters, the companies poised to make a significant impact on their respective industries.

Their private equity investments also include a focus on software and enterprise technology, particularly midstage B2B enterprise software companies.

This suggests a belief in the continued growth of the tech sector, but with a discerning eye towards companies that are beyond the early, often speculative stages of development.

This dual focus on public and private markets provides Viking with a unique perspective.

They can identify emerging trends in the private markets and then capitalize on those trends in their public equity portfolio as those companies mature and go public.

What Makes a Viking Investment

What makes a company a Viking target?

They look for companies with:

• strong management teams
• sustainable competitive advantages, and
• significant growth potential

They aren’t interested in short-term fads (and may short them), but looking for long-term value creation.

In the private sphere, they’re particularly drawn to companies with innovative technologies and strong intellectual property.

The Viking Culture

Halvorsen’s leadership extends to supporting a collaborative and results-oriented culture at Viking Global.

The firm’s team of seasoned analysts and portfolio managers works closely to uncover opportunities and manage risks.

This culture emphasizes:

• Multi-Step Analysis – Every investment or deal undergoes a thorough multi-stage vetting process, so that it aligns with Viking’s philosophy.
• Long-Term Thinking – Decisions are made with an eye on sustainable growth, rather than short-term gains.

Andreas Halvorsen: The Man Behind the Fund

Athletic Pursuits

Halvorsen’s passion extends beyond the financial markets.

He’s an avid cross-country skier, having participated in the endurance race Marcialonga in Italy at age 50, finishing just minutes behind Olympic gold medalist Bjørn Dæhlie, who was six years his junior.

His physical endurance and mental fortitude are traits that also define his professional success.

Many trading and investment firms look highly at atheltic success due to its demonstration of discipline, resilience, goal orientation, and the ability to perform under pressure – qualities that translate into high-stakes financial decision-making.

Philanthropy and Legacy

Unlike some of his more media-friendly peers, Halvorsen is known for his low-key approach.

Rarely granting interviews or appearing at conferences, he channels his energy into building Viking Global and doesn’t care much for showmanship or self-promotion.

This low-profile approach reinforces his and the firm’s reputation for professionalism and results over publicity.

The marketing also isn’t needed due to the low accessibility of his funds.

For a decade, Viking didn’t accept new investors and access remains limited.

Lessons from the Viking Strategy

1. Diversification is Key

Halvorsen’s ability to balance public and private investments, along with long and short positions, shows his belief in diversification and limiting excessive correlation to broader market movements.

While Viking specializes in equity investing, so there’s a lot of asset-related risk, it’s spread across sectors and asset types, to better achieve consistent results.

2. Focus on Fundamentals

In both public and private markets, Halvorsen emphasizes solid fundamentals at a reasonable price.

3. Adaptability Matters

For value-added investors like Halvorsen, being able to switch exposures quickly is important (e.g., between long and short), even for a high AUM where moving around a lot of money is difficult due to transaction costs.

Conclusion

Andreas Halvorsen has built Viking Global Investors into a powerhouse, a firm that consistently delivers strong returns for its investors.

His unique background, discipline, and focus on long-term value creation have set him apart in a crowded field.