Investment philosophy
“We are independent minded, we are not afraid to lose money or investors, we are concentrated and we are long-term.” Chris Hohn
- independent minded
- not afraid to lose money or investors
- concentrated and long term
While many investor proudly defined themself as "focused and independent minded" probably just a handful of that have the courage, the confidence (maybe also a kind of arrogance) to go against the crowd, moving far away from the index and focusing the core of their capital in just three to five companies.
Searching great businesses with catalysts to create value
“We have an investment philosophy that looks for strong companies and we are not afraid to be in situations that make others a little nauseous.” Chris Hohn
Unlike Warren Buffett who is looking from a great business with great management, TCI seems to look for a great business with poor management / poor corporate governance / holding discount / room for capital allocation improvement or another catalyst to enhance value.
So TCI is a long-term activist investor in strong business.
Performance
TCI lost more than 43% in 2008 but has generated an outstanding 18.2 % annualized return since inception (in 2004) to the third quarter of 2013.
UAU that is an outstanding long term absolute performance despite (or with) an extremely painful year .
On the painful year (2008)
"This has been a brutal period for long-biases investors like us, who have limited hedges, and its painful to lose money...I think the key for us is to mantain our core philosophy of long-term investing. As long as we still believe in our position, we won't let the markets change our mind." Chris Hohn
Current top holdings (source: whalewisdom.com)
Top TCI holdings as of 09/30/2014
| Stock | % port. |
|---|---|
| MCO | 45.1026% |
| TWC | 42.0754% |
| MHFI | 8.2621% |
| Turnover %: | 12.50% |
Conclusion
Hope to have put a bit more light on a great and atypical investor that – in my view – is not yet known as he – and his long term performance – deserves.
Snowballbuilder
http://snowballbuilder.blogspot.it/
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