Executive Overview

TCI Fund Management, led by Sir Chris Hohn, continues to run a concentrated portfolio built around “soft monopolies.” As of Q2 2025 the fund holds 10 positions totaling roughly $50.7 billion. The core anchors—GE Aerospace, Microsoft, and Visa—share common DNA: robust free-cash-flow, structural moats, and disciplined capital allocation that support long-duration compounding with tight risk governance.

Who Is Chris Hohn

Hohn is a UK activist investor and the founder of TCI (2003). His approach is long-only yet decidedly non-passive: invest in businesses with durable competitive advantage and, when necessary, apply targeted pressure to improve governance, transparency, and capital discipline. He is also a major philanthropist via CIFF. The blend of deep research, conviction, and selective activism underpins a coherent decision-making framework across cycles.

Portfolio Composition – End of Q2 2025

GE Aerospace is the top holding (~24%) on the back of a deep order book and high-margin services. Microsoft represents ~17% with dual exposure to cloud and AI. Visa sits around ~13% as a global payments backbone. The “data and indices” core—Moody’s and S&P Global—collectively north of 20%—benefits from a regulatory oligopoly and high cash conversion. Rail infrastructure exposure includes Canadian Pacific Kansas City and Canadian National Railway. Alphabet (both share classes) provides measured exposure to search and advertising, while Ferrovial adds airports and inflation-linked toll-roads.

Notable Quarterly Moves

Positioning tilted further toward fee-and-cash-flow engines. Visa was notably increased (≈+14.6%); Microsoft saw a modest add (≈+1.5%), and there were small adds to Moody’s and S&P Global. Both Alphabet lines were reduced, signaling a partial re-allocation away from ads toward higher-visibility cash flows. The Canadian rails were trimmed—more in Canadian National. GE Aerospace saw a minor reduction; Ferrovial a small add.

Strategic Rationale

TCI prioritizes hard-to-replicate compounders: two-sided network effects and brand trust at Visa; enterprise pricing power via AI-infused bundles at Microsoft; de-facto regulatory licensing at Moody’s and S&P Global; long-dated, service-heavy MRO streams at GE Aerospace; and inflation-indexed, concession-based cash flows at Ferrovial. The through-line is cash-flow visibility, high ROCE, and consistent buyback/dividend programs.

Growth Vectors for 2H-2025

GE Aerospace should benefit from fleet expansion and aftermarket services. Microsoft is at an AI adoption inflection, with Copilot penetration and Azure utilization supporting ARPU uplift. Visa has tailwinds from cross-border volumes and digital payments adoption in emerging markets. Stabilizing rate volatility could revive issuance—direct upside for Moody’s and S&P Global. In infrastructure, productivity improvements and supportive regulation could aid the Canadian rails.

Key Risks

Concentration heightens single-name risk. Regulatory tightening across ratings and payments could compress margins. A global macro slowdown would weigh on issuance, cross-border travel, and IT upgrade cycles. Rail exposure remains sensitive to commodities, labor actions, and logistics bottlenecks. Recent trims in Alphabet and the rails partially rebalance but do not eliminate risk.

Bottom Line

Chris Hohn’s end-Q2 2025 portfolio signals discipline and conviction: moaty, cash-rich assets at the core, incremental re-allocation toward higher-visibility cash flows, and activism deployed when needed. It’s a consistent playbook designed to compound value over time.