This article discusses the top 5 stock picks of billionaire Chris Hohn’s TCI Fund Management at the end of Q2. If you want to read about the fund’s recent performance and the changes it made to its portfolio during Q2, please go to 10 Best Stocks to Buy According to Billionaire Chris Hohn.
5. Canadian Pacific Railway Limited (NYSE:CP)
TCI Fund Management’s Stake Value: $3,901,375,000
Percentage of TCI Fund Management’s 13F Portfolio: 12.34%
Number of Hedge Fund Holders: 42
Despite the 25% correction in S&P500 this year, shares of Canadian Pacific Railway Limited (NYSE:CP) are still holding strong and have barely lost 4% of their value this year. However, its popularity among smart money investors has decreased significantly from last year. Among the funds tracked by Insider Monkey, 42 disclosed a stake in the railroad company at the end of June, down 15 from 57 at the end of 2021. Funds that sold their entire stake in Canadian Pacific Railway Limited (NYSE:CP) during the second quarter included David Harding’s Winton Capital Management, Ben Gambill’s Tiger Eye Capital, and Jonathan Esfandi’s JNE Partners.
4. Visa Inc. (NYSE:V)
TCI Fund Management’s Stake Value: $3,922,860,000
Percentage of TCI Fund Management’s 13F Portfolio: 12.41%
Number of Hedge Fund Holders: 166
Visa Inc.’s (NYSE:V) popularity has seen a consistent rise among investors over the past several years. And, even though the stock has gone nowhere in the last two years, hedge funds continue to show confidence in the stock. At the end of June, Visa Inc. (NYSE:V) was the 5th most popular stock among hedge funds tracked by Insider Monkey, with 166 of 895 hedge funds tracked by us reporting a stake in it.
On September 22, London-based Finastra, one of the largest fintech companies in the world, announced that it had entered into a Banking as a Service (BaaS) collaboration with Visa Inc. (NYSE:V) to co-develop new functionality on its Payments Hub solutions and implement Visa Direct.
3. Canadian National Railway Company (NYSE:CNI)
TCI Fund Management’s Stake Value: $4,127,697,000
Percentage of TCI Fund Management’s 13F Portfolio: 13.06%
Number of Hedge Fund Holders: 41
Canadian National Railway Company (NYSE:CNI) remained TCI Fund Management’s third favorite stock pick at the end of the second quarter. Although TCI Fund Management didn’t make any changes to its stake in the railroad company during the second quarter, several funds tracked by Insider Monkey increased their holdings in the company during that period. This list included names like John Armitage’s Egerton Capital Limited, which upped its holdings by 26% to 11.82 million shares and billionaire Israel Englander’s Millennium Management, which boosted its stake more than fivefold to 1.95 million shares.
Although Canadian National Railway Company (NYSE:CNI) has had a long history of consistently paying dividends, it had suspended its quarterly dividend amidst the COVID crisis in 202. Nonetheless, the company immediately resumed paying a dividend to its investors. The stock currently pays a dividend of $0.56 per share, which, based on its last closing price, translates into an annual dividend yield of 2%.
2. Microsoft Corporation (NASDAQ:MSFT)
TCI Fund Management’s Stake Value: $5,041,325,000
Percentage of TCI Fund Management’s 13F Portfolio: 15.95%
Number of Hedge Fund Holders: 258
TCI Fund Management solidified its holdings in Microsoft Corporation (NASDAQ:MSFT) by 14% to 19.63 million shares. However, the company still couldn’t climb to the top spot and remained the fund’s second most loved stock at the end of June. Microsoft Corporation (NASDAQ:MSFT) was the most popular stock among the hedge funds tracked by Insider Monkey, with 258 of the 895 disclosing a stake in the company at the end of the June quarter.
Earlier this year, Microsoft Corporation (NASDAQ:MSFT) had made a $69 billion bid for gaming giant Activision Blizzard, Inc. (NASDAQ:ATVI), which is yet to get regulatory approval. Many investors and analysts are now skeptical that the deal will go through. This can also be gauged from Activision Blizzard, Inc. (NASDAQ:ATVI) current stock price which is trading at more than a 20% discount from what Microsoft Corporation (NASDAQ:MSFT) has offered. To boost investors’ and analysts’ confidence, Microsoft Corporation (NASDAQ:MSFT) CEO Satya Nadella recently gave an interview to Bloomberg Television and said, “Of course, any acquisition of this size will go through scrutiny, but we feel very, very confident that we’ll come out.”
1. Alphabet Inc. (NASDAQ:GOOG)
TCI Fund Management’s Stake Value (Class A Shares): $1,673,717,000
Percentage of TCI Fund Management’s 13F Portfolio (Class A Shares): 5.29%
TCI Fund Management’s Stake Value (Class C Shares): $5,415,660,000
Percentage of TCI Fund Management’s 13F Portfolio (Class C Shares): 17.13%
Number of Hedge Fund Holders (Class A Shares): 191
Number of Hedge Fund Holders (Class C Shares): 153
Alphabet Inc. (NASDAQ:GOOG) has remained TCI Fund Management’s top stock pick since the end of the third quarter of 2021. During the second quarter of this year, the fund further solidified its stake in the company by purchasing an additional 35% class A and 5% class C shares from what it held in the previous quarter. Cumulatively, the fund also had the largest holdings in Alphabet Inc. (NASDAQ:GOOG) among all funds tracked by Insider Monkey at the end of Q2.
Of the 20 analysts on Wall Street who cover the stock, 19 currently have a ‘Buy’ or equivalent rating on it with a consensus price target of $158.05, representing a potential upside of 61%.
You can also look at 10 Best Healthcare Stocks to Buy According to Billionaire Larry Robbins and 8 Best Stocks to Buy According to Billionaire Nelson Peltz.
