TCI Fund Management's Q3 2025 13F Portfolio: Strategic Shifts and Contrarian Opportunities in Hohn's Latest Moves

In the third quarter of 2025, TCI Fund Management, the London-based value investing firm led by Chris Hohn, disclosed a $52.7 billion portfolio through its SEC 13F filing, offering a window into its evolving strategy amid shifting market dynamics. The portfolio, concentrated in just nine holdings, reflects a blend of defensive positioning and long-term contrarian bets, with significant implications for investors seeking undervalued opportunities.

A Concentrated Portfolio Anchored by Industrial and Financial Giants

TCI's Q3 2025 portfolio remains heavily weighted toward industrial and financial stocks, with General Electric (GE) accounting for 27.12% of the total value, followed by Visa (V) at 18.18%, Microsoft (MSFT) at 16.31%, Moody's (MCO) at 12.03%, and S&P Global (SPGI) at 10.33% according to the latest filing. This concentration underscores Hohn's preference for companies with durable competitive advantages and strong cash flow generation, even as it raises questions about diversification risks. The firm's top five holdings collectively represent over 84% of the portfolio, a stark contrast to broader market indices, which suggests a high conviction in its core positions.

Strategic Additions and Reductions: A Tale of Two Sectors

While TCI did not make any new stock purchases in Q3 2025, it increased its stakes in five existing positions and reduced holdings in five others. The most notable additions were in GE and Visa, with the latter seeing a 4.82% increase in portfolio allocation and a 8.99 million share count rise. These moves signal confidence in the industrial and financial sectors, particularly as GE's recent restructuring efforts and Visa's dominance in digital payments appear to align with long-term value creation.

Conversely, TCI significantly reduced its exposure to technology and transportation stocks. According to the portfolio activity report, Alphabet (GOOGL) was entirely sold out, while Microsoft and S&P Global saw reductions of 5.54% and 10.33% in portfolio allocation, respectively. The firm also cut its positions in Canadian National Railway (CNI) and Canadian Pacific Kansas City (CP) by 18.36% and 5.61%, respectively. These exits may reflect a reassessment of valuations in high-growth sectors or a shift toward more defensive plays as macroeconomic uncertainties persist.

Contrarian Opportunities in Hohn's Exit List

TCI's decision to exit Alphabet and reduce Microsoft and S&P Global presents potential contrarian opportunities for investors. Alphabet's 100% reduction in share count suggests TCI viewed its valuation as stretched, despite its dominance in AI and cloud computing. Similarly, Microsoft's 5.54% reduction could indicate a tactical rebalancing rather than a fundamental shift in its business model. For long-term investors, these moves might signal overbought conditions in certain tech stocks, offering entry points if valuations correct.

The exit from S&P Global is particularly intriguing. As a bellwether for the financial sector, S&P's reduction may reflect concerns about regulatory risks or market saturation. However, its core role in credit ratings and data services remains intact, making it a candidate for a rebound if interest rates stabilize.

Strategic Implications for Value Investors

TCI's Q3 2025 portfolio highlights a disciplined approach to capital allocation, prioritizing quality over diversification. The firm's focus on GE and Visa aligns with its historical preference for companies with strong balance sheets and pricing power, even as it navigates a challenging macroeconomic environment. For investors, this strategy underscores the importance of identifying undervalued sectors-such as industrials and financials-that may be overlooked in a market fixated on AI-driven tech stocks.

However, the portfolio's concentration also raises risks. A downturn in GE's industrial operations or a regulatory shift in the financial sector could disproportionately impact TCI's returns. This dynamic reinforces the need for investors to balance high-conviction bets with hedging strategies or complementary positions in underpenetrated markets.

Conclusion: A Portfolio for the Long Haul

TCI Fund Management's Q3 2025 13F filing reveals a portfolio built for resilience and long-term value creation. By doubling down on industrial and financial leaders while exiting overvalued tech positions, Hohn's firm has positioned itself to capitalize on macroeconomic cycles and sector rotations. For investors, the key takeaway is clear: contrarian opportunities often lie in the shadows of major fund managers' exits, while strategic additions to high-quality, undervalued stocks can yield outsized returns over time.

As the market grapples with inflationary pressures and geopolitical risks, TCI's approach serves as a reminder that value investing remains a potent strategy-provided one has the patience to hold through volatility.