Here is How Billionaire Chris Hohn’s Hedge Fund Beat the Market with 33% Gain and His Top 5 Stock Picks

1. General Electric (NYSE:GE)

TCI Fund Management’s Equity Stake: $4.60 Billion
Number of Hedge Fund Holders: 76

General Electric Company (NYSE:GE) was one of the stocks that allowed billionaire Chris Hohn’s hedge fund to beat the market with a 33% gain after rallying 95% in 2023. Operating as a high-tech industrial company that offers gas and steam turbines, General Electric Company (NYSE:GE) benefited from a booming global economy that fuelled demand for its solutions for industrial applications.

Insider Monkey’s examination of the Q3 2023 holdings of 910 hedge funds unveiled that 76 of them had acquired shares of General Electric Company (NYSE:GE). TCI Fund Management, led by Chris Hohn, emerged as the foremost stakeholder in our database, boasting ownership of shares valued at $4.60 billion.

In its Q3 2023 investor letter, Longleaf Partners Fund provided the following insights about General Electric Company (NYSE:GE):

“After a busy first half of the year, we initiated one new position in the quarter in a business we have successfully owned previously and were able to buy again at a discount within a new corporate structure. We opportunistically trimmed and added to several positions throughout the quarter, and we exited General Electric Company (NYSE:GE) and our small position in Hasbro after the share price ran away from us. GE was a multi-year portfolio holding for us that started out rocky but ultimately was a good illustration of owning a “quality” business that was temporarily viewed as “value” (aka, perceived as low quality) before ultimately being weighed properly by the market. CEO Larry Culp was a great partner, creating significant value for shareholders and closing the price-to-value gap. Under his leadership, GE materially improved its operations and is well under way on plans to simplify the business by separating it into three world-class companies. The market has finally caught up with reality versus perception and is pricing GE accordingly. Unfortunately, this means we no longer see a margin of safety for the business but will continue to watch GE and Culp closely and hope to have the opportunity to partner with him again.”

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