This article is part of a series that provides an ongoing analysis of the changes made to TCI Fund Management’s 13F portfolio on a quarterly basis. It is based on their regulatory 13F Form filed on 5/15/2024. Please visit our Tracking Chris Hohn’s TCI Fund Management 13F Portfolio article for an idea on their investment philosophy and our last update for the fund’s moves during Q4 2023.
This quarter, TCI Fund Management’s 13F portfolio value increased from $35.97B to $39.66B. The number of positions decreased from 10 to 9. The top three holdings are at ~46% while the top five are close to ~68% of the 13F assets: General Electric, Canadian National Railway, Canadian Pacific Railway, Moody’s, and Visa.
Stake Disposals:
Ferguson plc (FERG): FERG was a very small 0.23% of the portfolio position established during Q2 2023 and disposed during the quarter.
Stake Increases:
General Electric (GE): GE is currently the largest position in the portfolio at ~21%. It was purchased during Q1 2023 at prices between ~$66 and ~$94. There was a ~60% stake increase in the next quarter at prices between ~$94 and ~$110. This quarter saw another ~12% increase at prices between ~$99 and ~$144. The stock currently trades well above their purchase price ranges at ~$160.
Moody’s Corp (MCO): MCO is a ~12% position that has been in the portfolio since their first 13F filing in Q2 2015. At the time, the stake was already fairly large at 3.9M shares. The position has wavered. Recent activity follows. H1 2022 saw a ~25% stake increase at prices between ~$254 and ~$386. That was followed with a similar increase in the two quarters through Q1 2023 at prices between ~$235 and ~$330. The last quarter saw a ~16% increase at prices between ~$302 and ~$392. The stock currently trades at ~$428. There was a marginal increase this quarter.
Note: They have a ~6.7% ownership stake in the business.
Alphabet Inc. (GOOG): GOOG is a ~7% of the portfolio position. It was first purchased in 2017 at prices between ~$40 and ~$55. Next year saw the stake built at prices between ~$49 and ~$62. There was a ~18% selling in Q1 2022 while Q3 2022 saw a ~10% increase. There was a ~75% reduction during H1 2023 at prices between ~$87 and ~$128. The stock currently trades at ~$186. Q3 2023 saw a ~9% trimming while this quarter there was a similar increase.
Stake Decreases:
Canadian National Railway (CNI): CNI is currently the second largest position at ~13% of the portfolio. It was built in the 2018-19 timeframe at prices between ~$71 and ~$95. Q2 & Q3 2021 saw a ~75% stake increase at prices between ~$104 and ~$127. Q2 2023 also saw a ~11% increase. The stock currently trades at ~$118. There was minor trimming in the last two quarters.
Note: they have a ~6.3% ownership stake in the business.
Canadian Pacific (CP): The ~12% CP stake was purchased during 2018-19 at prices between ~$34 and ~$51. There was a minor increase during 2020 but since then, the position has been kept steady. The stock currently trades at $79.24. There was minor trimming in the last two quarters.
Note: they have a ~6% ownership stake in the business.
Microsoft Corporation (MSFT): MSFT is a large 11.12% of the portfolio stake established in the last quarter at prices between ~$313 and ~$383 and the stock currently trades well above that range at ~$451. There was marginal trimming this quarter.
Note: MSFT had a previous roundtrip. A ~12% MSFT stake was built in the 2017-18 timeframe at prices between ~$60 and ~$115. There was a ~50% selling in 2019 at prices between ~$100 and ~$160. There was a ~48% reduction during the two quarters through Q2 2023 at prices between ~$222 and ~$348. The stake was disposed in the next quarter at prices between ~$312 and ~$358.
Thermo Fisher Scientific (TMO): TMO is a 2.22% of the portfolio stake established during the three quarters through Q2 2023 at prices between ~$485 and ~$605 and the stock currently trades at ~$557. This quarter saw a ~52% selling at prices between ~$529 and ~$599.
Kept Steady:
Visa Inc. (V): The ~12% of the portfolio stake in Visa was built in 2020 at prices between ~$147 and ~$219. H2 2021 had seen a ~64% stake increase at prices between ~$196 and ~$249 while in the next quarter there was a ~14% reduction at prices between ~$191 and ~$235. The three quarters through Q3 2023 also saw a ~18% trimming. The stock is now at ~$274.
S&P Global Inc. (SPGI): The ~10% of the portfolio SPGI stake was first purchased in 2017 and built in 2019 at prices up to ~$275. Q1 2021 saw a ~150% stake increase at prices between ~$306 and ~$362 while in H2 2021 there was a ~37% selling at prices between ~$415 and ~$475. There was a ~80% stake increase in Q1 2022 at prices between ~$373 and ~$461. That was followed with another ~30% increase in the next quarter at prices between ~$316 and ~$415. The stock currently trades at ~$449.
The spreadsheet below highlights changes to TCI Fund Management’s 13F holdings in Q1 2024:
Chris Hohn – TCI Fund Management Portfolio – Q1 2024 13F Report Q/Q Comparison (John Vincent (author))
