In this piece we’ll gloss over the 3 stocks that Europe’s most feared investor Chris Hohn is buying. If you want to take a look at our comprehensive analysis of Chris Hohn’s history, investment philosophy, and hedge fund performance, then head right on to Europe’s Most Feared Investor Chris Hohn is Buying These 6 Stocks.
3. Canadian National Railway Company (NYSE:CNI)
Sir Hohn’s Stake Value: $3.2 billion
Percentage of Sir Hohn’s 13F Portfolio: 7.92%
Number of Hedge Fund Holders: 40
Canadian National Railway Company (NYSE:CNI) is a more than a hundred year old company that is based inside Canada and provides railroad services to customers on both sides of the border. The company is responsible for the goods transport, and it transports materials such as metals, minerals and chemicals alongside products such as fertilizer and petroleum.
Out of the 873 hedge funds polled by Insider Monkey in the second quarter, 40 had held a stake in the Canadian National Railway Company (NYSE:CNI). Its largest shareholder after Sir Hohn is Stephen J. Errico’s Locust Wood Capital Advisers who owns 171,168 shares worth $19.7 million.
In a late October note, Deutsche Bank’s analyst Amit Mehrotra raised Canadian National Railway Company (NYSE:CNI)’s price target to $130 per share from an earlier $110.
2. Canadian Pacific Railway Limited (NYSE:CP)
Sir Hohn’s Stake Value: $4.3 billion
Percentage of Sir Hohn’s 13F Portfolio: 10.71%
Number of Hedge Fund Holders: 25
Canadian Pacific Railway Limited (NYSE:CP) is one of the oldest companies in Canada, as it was founded in 1881 and it is headquartered in Calgary. The company primarily targets the commodity and minerals transportation markets, by shipping a diverse range of products covering grains, fertilizers, plastics, minerals and metals.
During the second quarter, Sir Hohn’s TCI Fund Management held 55.8 million shares of the company, a stake that represented 10.7% of his portfolio and was worth $4.2 billion.
A second quarter poll of 873 hedge funds by Insider Monkey revealed that 25 held a stake in Canadian Pacific Railway Limited (NYSE:CP), and the company’s largest investor after Sir Hohn is Stephen J. Erricos’s Locust Wood Capital Advisors.
ClearBridge Investments in a first quarter investor letter published earlier this year had the following to say about Canadian Pacific Railway Limited (NYSE:CP):
“We reoriented the portfolio for a more cyclical market in the fourth quarter and saw good performance in these areas from structural growth companies like Canadian Pacific Railway, which we repurchased during the quarter. Canadian Pacific pared gains after announcing the acquisition of Kansas City Southern that will create the first rail operator connecting the U.S., Mexico and Canada.”
Canadian Pacific Railway Limited (NYSE:CP) joins Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOG), alongside Charter Communications, Inc. (NASDAQ:CHTR) as a top Sir Hohn pick.
In an October analyst note, RBC Capital analyst Walter Spracklin kept an outperform rating on Canadian Pacific Railway Limited (NYSE:CP) and reduced its price target by CAD$1 to CAD$115.
1. Charter Communications, Inc. (NASDAQ:CHTR)
Sir Hohn’s Stake Value: $7.5 billion
Percentage of Sir Hohn’s 13F Portfolio: 18.68%
Number of Hedge Fund Holders: 75
Charter Communications, Inc. (NASDAQ:CHTR) is headquartered in Stamford, Connecticut after being founded in 1993. It is a broadband connectivity and cable services provider that offers several kinds of internet connections alongside equipment that enable its customers to set up their connections inside their homes.
Sir Hohn increased his holdings in Charter Communications, Inc. (NASDAQ:CHTR) by 2% to 10.3 million shares in Q2. These shares were worth $7.4 billion and they represented nearly one fifth or 18.68% of his portfolio. Additionally, 75 of the 873 hedge funds polled by Insider Monkey during the same time period held a stake in Charter Communications, Inc. (NASDAQ:CHTR).
Following Sir Hohn, Charter Communications, Inc. (NASDAQ:CHTR)’s largest stakeholder is the legendary Warren Buffett’s Berkshire Hathaway, who owns 5.2 million shares for a stake that is worth $3.7 billion.
In its first quarter investor letter, ClearBridge Investments had the following to say about Charter Communications, Inc. (NASDAQ:CHTR):
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included communication services, where Charter trailed after generating robust returns earlier in the recovery.”
Disclosure: None. You can also take a peek at the 15 Most Valuable Alcohol Companies and Billionaire Julian Robertson’s Top 10 Stocks.
