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 5/15/2023. 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 Q4 2022.
This quarter, TCI Fund Management’s 13F portfolio value decreased from $29.93B to $29.20B. The number of positions remained steady at 9. The top three holdings are at ~45% while the top five are close to ~71% of the 13F assets: Microsoft, Visa, Canadian National Railway, Canadian Pacific Railway and S&P Global.
New Stakes:
General Electric (GE): GE is a 8.55% of the portfolio position purchased this quarter at prices between ~$66 and ~$94 and the stock currently trades well above that range at ~$105.
Stake Disposals:
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. The last quarter saw the position almost sold out at prices between ~$186 and ~$218. The remainder stake was disposed during the quarter. The stock currently trades at ~$203.
Stake Increases:
S&P Global Inc. (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 with another ~30% increase next quarter at prices between ~$316 and ~$415. The stock currently trades at ~$388. The last three quarters also saw minor increases.
Moody’s Corp. (MCO): MCO is a ~11% 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 ~25% stake increase in the last two quarters at prices between ~$235 and ~$330. The stock currently trades at ~$336.
Note: They have a ~5.6% ownership stake in the business.
Thermo Fisher Scientific (TMO): TMO is a 1.65% of the portfolio stake established during the last two quarters at prices between ~$485 and ~$605 and the stock currently trades at ~$528.
Stake Decreases:
Microsoft Corporation (MSFT): MSFT is the second-largest position at ~15% 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 by a similar increase last quarter. There was a one-third reduction this quarter at prices between ~$222 and ~$288. The stock currently trades at ~$337.
Visa Inc. (V): The 14.89% 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. There was a minor ~3% trimming this quarter.
Alphabet Inc. (GOOG) (GOOGL): GOOG is a ~8% 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 two-thirds reduction this quarter at prices between ~$87 and ~$109. The stock currently trades at ~$124.
Kept Steady:
Canadian National Railway (CNI): CNI is a top-three 14.83% 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 ~$120.
Note: they have a ~5.2% ownership stake in the business.
Canadian Pacific (CP): The 14.72% 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 ~$81.
Note: they have a ~6% ownership stake in the business.
The spreadsheet below highlights changes to TCI Fund Management’s 13F holdings in Q1 2023:
Chris Hohn – TCI Fund Management’s Q1 2023 13F Report Q/Q Comparison (John Vincent (author))
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