Tracking Chris Hohn’s TCI Fund Management 13F Portfolio – Q4 2023 Update

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 2/14/2024. Please visit our Tracking Chris Hohn’s TCI Fund Management 13F Portfolio article for an idea of their investment philosophy and our last update for the fund’s moves during Q3 2023.

This quarter, TCI Fund Management’s 13F portfolio value increased from $27.56B to $35.97B. The number of positions increased from 9 to 10. The top three holdings are at ~42% while the top five are close to ~64% of the 13F assets: General Electric, Canadian National Railway, Moody’s, Canadian Pacific Railway, and Visa.

New Stakes:

Microsoft Corporation (MSFT): MSFT is a large 11.12% of the portfolio stake established this quarter at prices between ~$313 and ~$383 and the stock currently trades well above that range at ~$423.

Note: MSFT is back in the portfolio after a quarter’s gap. 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. Recent activity follows: Q1 2021 saw a ~45% increase at prices between ~$213 and ~$245 while in Q3 2021 there was a ~20% selling at prices between ~$275 and ~$304. Q2 2022 saw a ~14% increase in prices between ~$242 and ~$315. That was followed by a similar increase during Q4 2022. There was a ~48% reduction during the two quarters through Q2 2023 at prices between ~$222 and ~$348. The stake was disposed last quarter at prices between ~$312 and ~$358.

Stake Increases:

Moody’s (MCO): MCO is a ~13% 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. The stake was almost sold out in 2016 at prices between ~$80 and ~$110. The 2017-2018 timeframe saw the position rebuilt at prices between ~$98 and ~$185. H1 2022 had seen a ~25% stake increase at prices between ~$254 and ~$386. That was followed by a ~25% stake increase in the two quarters through Q1 2023 at prices between ~$235 and ~$330. This quarter saw a ~16% increase at prices between ~$302 and ~$392. The stock currently trades at ~$387.

Note: They have a ~6.6% ownership stake in the business.

Alphabet (GOOG): GOOG is a 6.69% of the portfolio. 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 ~$151. The last quarter saw a ~9% trimming while this quarter there was a marginal increase.

Stake Decreases:

Canadian National Railway (CNI): CNI is currently in the second largest position at ~14% 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 ~$130. There was a minor ~2% trimming this quarter.

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 $87.39. There was marginal trimming this quarter.

Note: they have a ~6% ownership stake in the business.

S&P Global (SPGI): The ~11% 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 by another ~30% increase in the next quarter at prices between ~$316 and ~$415. The stock currently trades at ~$418. There was marginal trimming this quarter.

Thermo Fisher Scientific (TMO): TMO is a 4.64% of the portfolio stake established during the three quarters through Q2 2023 at prices between ~$485 and ~$605 and the stock currently trades at ~$574. The last two quarters saw only minor adjustments.

Ferguson plc (FERG): FERG is a very small 0.23% of the portfolio position established during Q2 2023. There was a ~11% trimming this quarter.

Kept Steady:

General Electric (GE): GE is currently the largest position in the portfolio at ~15%. It was purchased during Q1 2023 at prices between ~$66 and ~$94. There was a ~60% stake increase next quarter at prices between ~$94 and ~$110. The stock currently trades at ~$173.

Visa (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 next quarter there was a ~14% reduction at prices between ~$191 and ~$235. The stock is now at ~$281. The last three quarters saw a ~18% trimming.

The spreadsheet below highlights changes to TCI Fund Management’s 13F holdings in Q4 2023: