2023-04-06 08:12:52 ET
Summary
- TCI Fund Management’s 13F portfolio value increased from $28.58B to $29.93B this quarter.
- They increased Microsoft and Moody’s while reducing Union Pacific and dropping Boston Properties.
- The top three positions are Alphabet, Microsoft, and Canadian National Railway and they add up to ~53% of the portfolio.
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 2/14/2023. 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 Q3 2022.
This quarter, TCI Fund Management's 13F portfolio value increased from $28.58B to $29.93B. The number of positions remained steady at 9. The top three holdings are at ~53% while the top five are close to ~81% of the 13F assets: Alphabet, Microsoft, Canadian National Railway, Canadian Pacific Railway, and Visa.
New Stakes:
Thermo Fisher Scientific ( TMO ) : TMO is a minutely small 0.12% of the portfolio stake established at prices between ~$485 and ~$571 and the stock currently trades at ~$580.
Stake Disposals:
Boston Properties ( BXP ) : BXP was a 1.37% of the portfolio position established during Q2-Q4 2020 at prices between ~$31 and ~$42. Q2 & Q3 2021 saw a ~48% stake increase at prices between ~$39 and ~$46. The three quarters through Q2 2022 had seen a ~18% selling at prices between ~$86 and ~$133. That was followed with a ~50% reduction last quarter at prices between ~$74 and ~$91. The disposal this quarter was at prices between ~$65 and ~$76. The stock currently trades at $52.53. They harvested gains.
Stake Increases:
Alphabet Inc. ( GOOG ) ( GOOGL ) : GOOG is by far the largest position at ~21% 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 last quarter there was a ~10% increase. The stock currently trades at ~$105. There was a minor ~3% increase this quarter.
Microsoft Corporation ( MSFT ) : MSFT is the second-largest position at ~18% of the portfolio. It 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 at prices between ~$242 and ~$315. That was followed with a similar increase this quarter. The stock currently trades at ~$284.
S&P Global Inc. ( SPGI ) : The 10.28% 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 next quarter at prices between ~$316 and ~$415. The stock currently trades at ~$345. This quarter also saw a ~12% increase.
Moody's Corp ( MCO ) : MCO is a 8.58% 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 with a ~12% stake increase this quarter. The stock currently trades at ~$303.
Note: They have a ~5% ownership stake in the business.
Stake Decreases:
Union Pacific ( UNP ) : The UNP stake was purchased in 2018 at prices between ~$127 and ~$165. Next year saw a roughly one-third selling at prices between ~$138 and ~$181. 2020 saw a ~20% stake increase at prices between ~$118 and ~$210. There was a ~15% trimming in Q1 2022 at prices between ~$238 and ~$277. This quarter saw the position almost sold out at prices between ~$186 and ~$218. The stock currently trades at ~$194.
Kept Steady:
Canadian National Railway ( CNI ) : CNI is a top-three ~15% of the portfolio position 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. The stock currently trades at ~$117.
Note: they have a ~5.2% ownership stake in the business.
Canadian Pacific ( CP ) : The ~14% 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 $75.76.
Note: they have a ~6% ownership stake in the business.
Visa Inc. ( V ) : The 13.84% 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 ~$228.
The spreadsheet below highlights changes to TCI Fund Management's 13F holdings in Q4 2022:
Chris Hohn - TCI Fund Management's Q4 2022 13F Report Q/Q Comparison (John Vincent (author))
For further details see:
Tracking Chris Hohn's TCI Fund Management 13F Portfolio - Q4 2022 Update