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TCI, the activist hedge fund led by Sir Christopher Horne, rose 32.7% last year, largely outpacing the stock market, helped by investments in stocks such as Alphabet and Moody’s, according to people familiar with the figures.
The gains for The Children’s Investment Fund, which manages more than $49 billion in assets, mean it more than recovered the losses it suffered in 2022, when it fell 18% on a global stock market slide.
The fund’s performance in 2023 compares with a 24.2% gain for the S&P 500 index and a 3.8% gain for the FTSE 100 index. Equity hedge funds rose an average of 6.6% through the end of November last year, according to data group HFR.
TCI’s largest holdings at the end of September included Alphabet, Canadian National Railways, Visa, General Electric and rating agency Moody’s, according to regulatory filings.
Alphabet’s stock soared 58% last year, driven in part by investor enthusiasm for the potential for the U.S. tech giant to incorporate artificial intelligence into its services.
Moody’s rose 40% and Visa rose 25%.
TCI had a $4 billion position in Microsoft Corp. as of June last year, but sold it by the end of the third quarter, according to filings.
TCI invests in a concentrated portfolio of stocks that tend to be held for the long term. Mr. Horne, a British billionaire, is known for his shareholder activism, pushing for changes when he disagrees with the direction of directors.
In February last year, Mr. Horne pressured Airbus to halt efforts to acquire a stake in the cybersecurity division of French IT company Atos.
He also asked three directors of Spanish telecommunications company Cellnex to resign, but he was partially successful, with two of the three resigning. His stock price rose 15% in 2023.
Former Canadian National CEO Jacques Luest resigned in 2021 following Mr. Horne’s campaign.
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