Time Warner Cable Inc (TWC): Chris Hohn Keeps Increasing His Largest Holding

Chris Hohn‘s Children’s Investment Fund has recently raised its exposure to the company that represents the largest holding in its equity portfolio, Time Warner Cable Inc (NYSE:TWC). According to a new filing with the Securities and Exchange Commission, Children’s Investment Fund owns 14.10 million shares of the company, the passive stake amassing 5.0% of the common stock. Previously, the investor reported ownership of 9.87 million shares, held as of the end of 2014.

Children’s Investment Fund is a UK-based activist hedge fund that owns a narrow equity portfolio valued at $2.55 billion. The portfolio contains only four positions as of the end of last year, after the investor closed its holdings in three companies: Mastercard Inc (NYSE:MA), Time Warner Inc (NYSE:TWX), and CME Group Inc (NASDAQ:CME). Time Warner Cable Inc (NYSE:TWC) represented the largest position in terms of value at the end of 2014, as the $1.50 billion stake amassed almost 59% of the total equity portfolio.

In Time Warner Cable Inc (NYSE:TWC), Children’s Investment Fund initiated a stake during the second quarter of 2014, several months after the company announced that Comcast Corporation (NASDAQ:CMCSA) proposed to acquire it in a stock-swap deal valued at $45 billion. Even though the shareholders of both companies voted in favor of the merger, the Federal Communications Commission has to approve the transaction. The FCC earlier said it would review the merge during the first quarter, but as it has been reported, the Commission put the review on hold pending a court decision related to the video-programming contracts disclosure. Nevertheless, Mr. Hohn has been consistently raising his position in Time Warner Cable over the last several months from the initially held 5.31 million shares.

Despite the deal between Time Warner Cable Inc (NYSE:TWC) and Comcast still hanging in the air, the investors look optimistic about the success of the merger, which is why they have been piling up capital in Time Warner Cable. The last round of 13F filings showed that 82 funds among those that we track held around $9.08 billion worth of company’s stock, versus $8.26 billion a quarter earlier. John Paulson of Paulson & Co is another investor bullish on Time Warner Cable Inc (NYSE:TWC), as during the fourth quarter he added some 1.37 million shares to his stake, taking it to almost 8.70 million shares.

Disclosure: none