12 Best Stocks to Buy Now According to British Billionaire Chris Hohn

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In this article, we discuss the 12 best stocks to buy now according to British billionaire Chris Hohn. If you want to skip our detailed analysis of Chris Hohn’s investment philosophy, hedge fund returns and history, go directly to 5 Best Stocks to Buy Now According to British Billionaire Chris Hohn.

Chris Hohn is known as one of the most prolific investors on Wall Street. He founded TCI (The Children’s Investment) Fund Management in 2003, then pledging to donate 50 basis points of all management fees to charitable causes, mainly to The Children’s Investment Fund Foundation. This is a unique example of ‘venture philanthropy’ which aims to promote hedge funds becoming more aware of charitable causes around the world. Chris Hohn was born in Surrey and went to the University of Southampton from where he graduated with first-class honours in accounting and business economics in 1988. He subsequently went on to receive an MBA degree from Harvard Business School in 1993. The famed activist investor started his career in the financial world with Apax Partners, and then went on to work for Wall Street-hedge fund Perry Capital, where he was eventually made the firm’s head of operations in London.

TCI Fund Management boasts assets under management (AUM) of $44.43 billion as of the fourth quarter of 2021. The fund’s holdings are concentrated in the Services, Financial, Technology and Others sectors, and the 13 stocks on the following list make up the entirety of the fund’s portfolio. Since its inception, TCI Fund Management has generated annualized returns of 18%, which is roughly twice the returns posted by the S&P 500 index during this period. In 2021, the fund delivered to its investors profits of over $9.5 billion. Chris Hohn’s TCI Fund Management employs a long-only, global investment strategy which locks in investments for multi-year periods to allow greater flexibility to generate sizeable returns. Some of the top names in Chris Hohn’s portfolio as of the fourth quarter of 2021 include Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Visa Inc. (NYSE:V), along with others mentioned below.

Let’s now take a look at the 13 best stocks to buy according to the portfolio of British billionaire Chris Hohn.

Chris Hohn’s top 10 stock picks

Chris Hohn Our Methodology

We went through Chris Hohn’s 13F filings for the fourth quarter of 2021 and picked top 12 stocks in his portfolio.

12. Alexandria Real Estate Equities, Inc. (NYSE:ARE)

TCI Fund Management’s Stake Value: $232.85 million Percentage of TCI Fund Management’s 13F Portfolio: 0.52% Number of Hedge Fund Holders: 25

Alexandria Real Estate Equities, Inc. (NYSE:ARE) starts off our list of the best stocks to buy according to billionaire Chris Hohn. It represents 0.52% of TCI Fund Management’s entire portfolio, with 1.04 million shares valued at $232.85 million. It is a California-based real estate investment trust (REIT) which deals in life science and technology buildings, laboratories and campuses located primarily in urban AAA innovation cluster locations in the United States. In Q4 2021, Alexandria Real Estate Equities, Inc. (NYSE:ARE) posted a revenue of $576.92 million, which beat estimates by $26.88 million and showed an increase of 24.41% in comparison to the year-ago quarter.

As of April 22, Alexandria Real Estate Equities, Inc. (NYSE:ARE) offers a healthy dividend yield of 2.35%, and has raised its dividend payments for 12 years in a row.

In early March, Alexandria Real Estate Equities, Inc. (NYSE:ARE) announced that Bristol Myers Squibb (BMY) has executed a long-term lease for the development of the global biopharmaceutical company’s latest core R&D facility. This cutting-edge, amenity-rich mega campus will be located in the University Town Center submarket in San Diego, California.

As of the fourth quarter, 25 out of the 924 elite hedge funds tracked by Insider Monkey held $484.4 million worth of stakes in Alexandria Real Estate Equities, Inc. (NYSE:ARE). This is down from 26 hedge funds with $489.9 million worth of positions in the company a quarter ago.

Investment firm Baron Funds talked about Alexandria Real Estate Equities, Inc. (NYSE:ARE) in its third-quarter 2021 investor letter. The fund said:

“The Fund’s unique exposure to the specialized REITs sub-industry through its investment in Alexandria Real Estate Equities, Inc. added value. Shares of life science office REIT Alexandria were up after reporting strong quarterly results. Management also provided a bright outlook for the remainder of the year as fundamentals remain excellent across the company’s real estate footprint.”

Along with Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Visa Inc. (NYSE:V), Alexandria Real Estate Equities, Inc. (NYSE:ARE) is grabbing the attention of investors on Wall Street.

11. IHS Markit Ltd. (NYSE:INFO)

TCI Fund Management’s Stake Value: $1.01 billion Percentage of TCI Fund Management’s 13F Portfolio: 2.29% Number of Hedge Fund Holders: 69

IHS Markit Ltd. (NYSE:INFO) is a provider of information, analytics and research that was merged into S&P Global Inc. (NYSE:SPGI) in February 2022. Chris Hohn’s TCI Fund Management owned 7.66 million shares of IHS Markit Ltd. (NYSE:INFO) worth $1.01 billion in the fourth quarter of 2021, an increase of 100% in holding over the previous quarter where the fund owned 3.84 million shares of the firm.

In Q4 2021, 69 hedge funds were bullish on IHS Markit Ltd. (NYSE:INFO) shares with a combined value of $8.55 billion. This showed a positive trend from the preceding quarter where 64 hedge funds were long on the company shares. Pentwater Capital Management was the top shareholder of IHS Markit Ltd. (NYSE:INFO) in the fourth quarter, with 9.31 million shares worth $1.23 billion.

10. Boston Properties, Inc. (NYSE:BXP)

TCI Fund Management’s Stake Value: $1.43 billion Percentage of TCI Fund Management’s 13F Portfolio: 3.22% Number of Hedge Fund Holders: 22

Boston Properties, Inc. (NYSE:BXP) is up next on the list of top stocks to buy according to billionaire Chris Hohn. According to 13F filings for the fourth quarter, TCI Fund Management owned 12.45 million shares of the firm at a value of $1.43 billion, representing 3.22% of the fund’s total portfolio.

Out of all the hedge funds tracked by Insider Monkey, 22 held stakes in Boston Properties, Inc. (NYSE:BXP) during the fourth quarter, as compared 21 hedge funds a quarter ago.

Operating as a real estate investment trust (REIT), Boston Properties, Inc. (NYSE:BXP) is the largest publicly-traded developer and owner of Class A office properties in the United States, with assets concentrated in the key markets of Boston, New York, Los Angeles, San Francisco and Washington, DC. As of April 22, shares of Boston Properties, Inc. (NYSE:BXP) have gained 17.11% in the last 12 months, and 7.19% in the last 6 months.

Mizuho analyst Vikram Malhotra on April 22 named Boston Properties, Inc. (NYSE:BXP) his top pick in office REITs, and upgraded the stock from ‘Neutral’ to ‘Buy’ with a price target of $135, up from $120.

9. Union Pacific Corporation (NYSE:UNP)

TCI Fund Management’s Stake Value: $1.54 billion Percentage of TCI Fund Management’s 13F Portfolio: 3.48% Number of Hedge Fund Holders: 59

Union Pacific Corporation (NYSE:UNP) is a railroad company in the United States which offers transportation services to a range of industries including agriculture, petroleum, and construction, among others. Chris Hohn’s stake in the firm during the fourth quarter was reported at 6.14 million shares worth $1.54 billion, amounting to a 3.48% slice of his overall portfolio. As of the fourth quarter, 59 hedge funds reported owning positions in Union Pacific Corporation (NYSE:UNP) at a total value of $5.64 billion. This is down from 63 hedge funds a quarter ago.

On April 22, Raymond James analyst Patrick Tyler Brown upheld a ‘Strong Buy’ rating on Union Pacific Corporation (NYSE:UNP) shares, and increased the price target to $285 from $280. He sees an improvement in service, the climate benefits of rail, and a tight truck market acting as tailwinds for the firm leading volumes, price and earnings higher than estimated.

For the first quarter of 2022, Union Pacific Corporation (NYSE:UNP) posted an EPS of $2.57 which was in-line with estimates. $5.86 billion in quarterly revenue was above estimates by $100 million and grew 17.18% in comparison to the year-ago quarter.

Investment firm ClearBridge Investments discussed Union Pacific Corporation (NYSE:UNP) in its Q4 2021 investor letter, stating:

“Despite these mixed emerging growth results, the ClearBridge Global Growth Strategy outperformed the benchmark due to resilience among our secular and structural growth holdings. These consistent growers were complemented by solid contributions from structural holdings including Union Pacific.”

8. S&P Global Inc. (NYSE:SPGI)

TCI Fund Management’s Stake Value: $1.76 billion Percentage of TCI Fund Management’s 13F Portfolio: 3.97% Number of Hedge Fund Holders: 79

S&P Global Inc. (NYSE:SPGI) deals in the provision of credit ratings, benchmarks and analytics to the global capital and commodity markets. 79 hedge funds were bullish on the company shares in the fourth quarter of 2021, holding total stakes worth $7.82 billion. Last quarter, 78 hedge funds reported owning positions in the company. At the end of the fourth quarter, billionaire Chris Hohn’s TCI Fund Management owned 3.74 million shares of S&P Global Inc. (NYSE:SPGI) with a price tag of $1.76 billion, which amounted to 3.97% of the fund’s total holdings.

On March 29, Deutsche Bank analyst Faiza Alwy initiated coverage of S&P Global Inc. (NYSE:SPGI) with a ‘Buy’ rating and a price target of $515, noting a bullish stance on the long-term fundamentals for information services amidst growing demand for data and analytics-based decision-making.

On February 8, S&P Global Inc. (NYSE:SPGI) announced its fourth quarter earnings, and EPS was recorded at $3.15, which was above estimates by $0.03. Quarterly revenue grew 11.84% year-on-year to come in at $2.09 billion, which also beat analysts’ estimates by $42.5 million.

Here is what Cooper Investors, an investment firm, had to say about S&P Global Inc. (NYSE:SPGI) in its Q1 2022 investor letter:

“This quarter, S&P Global announced the successful completion of its acquisition of IHS Markit. The deal makes S&P a global leader across the information services industry. The Fund has been long term shareholders of S&P, building a position back in 2015 when the organisation was still named McGraw-Hill Financial. We saw the initial opportunity as it refocused the business from a publishing and financial conglomerate towards its core data and financial assets. S&P’s credit ratings, benchmarks and analytics businesses in global capital and commodity markets carry leading positions, defensible offerings, consistent growth and high margins – as true today as it was seven years ago. With the increased focus management have applied over a lengthy period we see improved revenue growth, margins and cash flows…” (Click here to see the full text)

7. Moody’s Corporation (NYSE:MCO)

TCI Fund Management’s Stake Value: $2.56 billion Percentage of TCI Fund Management’s 13F Portfolio: 5.76% Number of Hedge Fund Holders: 58

Moody’s Corporation (NYSE:MCO) provides credit ratings, research and analytics to financial markets around the world. As of the fourth quarter, Chris Hohn owned 6.56 million shares of the firm at a value of $2.56 billion which represented 5.76% of his overall portfolio. In total, 58 hedge funds out of the 924 tracked by Insider Monkey were long Moody’s Corporation (NYSE:MCO) in the Q4 2021, with aggregate positions worth $16.85 billion. The same number of hedge funds held stakes in the firm a quarter ago as well.

BMO Capital analyst Jeffrey Silber on April 18 raised the firm’s price target on Moody’s Corporation (NYSE:MCO) to $375 from $365 and reiterated an ‘Outperform’ rating on the company shares, whilst noting that the expansion of Moody’s Analytics offerings should diversify the business with new growth markets.

Revenue for the fourth quarter stood at $1.54 billion for Moody’s Corporation (NYSE:MCO), which was a jump of 19.30% from the year-ago quarter and beat analysts’ expectations by $33.92 million. EPS was recorded at $2.33, which was slightly below analysts’ forecasts by $0.06.

Qualivian Investment Partners mentioned many stocks in its Q2 2021 investor letter and Moody’s Corporation (NYSE:MCO) was one of them. The fund said:

Moody’s: Revenue, operating profit margins, and EPS all exceeded expectations, and annual guidance for these items (and for free cash flow) was raised. In MIS (Moody’s Investors Service) which houses the traditional ratings business, the outlook for debt issuance was raised for the remainder of the year, while MA (Moody’s Analytics) also came in ahead of expectations. The company leveraged strong revenue growth with strong operating profit margin improvement of 200 bps, with EPS coming in $0.22 ahead of consensus estimates. Management alluded to having interesting opportunities in their M&A pipeline, which we will have to assess when the time comes, but Moody’s management team has been very effective at allocating capital in the past toward value-creating bolt-on acquisitions, especially in their Moody’s Analytics business, a key growth driver for the company.”

6. Canadian Pacific Railway Limited (NYSE:CP)

TCI Fund Management’s Stake Value: $4.02 billion Percentage of TCI Fund Management’s 13F Portfolio: 9.04% Number of Hedge Fund Holders: 55

Canadian Pacific Railway Limited (NYSE:CP) provides freight transportation, logistics and supply chain services in Canada and the United States through its network of transcontinental freight railway. With 55.86 million shares worth $4.02 billion, TCI Fund Management was the largest shareholder of the firm in the fourth quarter of 2021.

On April 22, Raymond James analyst Steve Hansen gave Canadian Pacific Railway Limited (NYSE:CP) a ‘Market Perform’ rating, down from Outperform with a revised price target of C$175 from C$180. The analyst updated his rating based on slowing economic indicators and a weaker than expected start to 2022 for the firm.

For the fourth quarter, Canadian Pacific Railway Limited (NYSE:CP) posted an EPS of $0.75, which fell slightly below estimates by $0.02. However, quarterly revenue was recorded at $1.6 billion which was above estimates by $17.41 million.

Investors were seen loading up on Canadian Pacific Railway Limited (NYSE:CP) stock in the fourth quarter of 2021, where 55 hedge funds were long on the company shares with combined positions worth $8.19 billion. In contrast, 38 hedge funds held aggregate stakes worth $6.63 billion in Canadian Pacific Railway Limited (NYSE:CP) in the quarter before.

Investment firm ClearBridge Investments talked about Canadian Pacific Railway Limited (NYSE:CP) in its Q3 2021 investor letter. This is what the fund said:

“The other major headwind to relative performance in the quarter was Canadian Pacific Railway. The stock has been a strong performer for the Strategy but negative sentiment around its bidding war for U.S. rail operator Kansas City Southern has weighed on the stock since late May. As a result, the cyclical uptick we expected from the company has been masked by the takeover. Indeed, we have been frustrated by the muted performance among Canadian Pacific and other recently added positions in our structural bucket of growth companies with more cyclical business models or that are undergoing a restructuring that should lead to a step change improvement in earnings. As more regions reopen from COVID-19 and spending rebounds, we expect better performance from our structural names, including Airbus and hospitality and food service provider Compass.”

In addition to Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Visa Inc. (NYSE:V), Canadian Pacific Railway Limited (NYSE:CP) is an exciting stock on the radar of institutional investors.

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Disclosure. None. 13 Best Stocks to Buy Now According to British Billionaire Chris Hohn is originally published on Insider Monkey.