5 Most Famous Hedge Fund Managers and Their Top Stock Picks

4. Chris Hohn

Chris Hohn is an activist investor who established The Children’s Investment Fund, a hedge fund based in London in 2003. As of January 29, Hohn’s net worth came in at $7.9 billion. The Children’s Investment Fund engages in long-term investments in companies worldwide. At the end of the third quarter of 2022, Alphabet Inc. (NASDAQ:GOOG) is the biggest position in TCI Fund’s portfolio, with 52.4 million shares valued at $5 billion. 

Here is what L1 Capital International Fund has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2022 investor letter:

“Two companies, Amazon.com (Amazon) and Alphabet Inc. (NASDAQ:GOOG), detracted more than 0.5% (in AUD) from the Fund’s returns. Both companies reported Q3 2022 quarterly results that were modestly below our expectations. Alphabet’s share price was impacted by concerns that macroeconomic pressures will impact advertising spend, increased commentary that Alphabet’s core search business could be disrupted by open artificial intelligence technologies, particularly from OpenAI’s ChatGPT chatbot (Microsoft is rumored to be investing $10 billion in OpenAI with the aim of incorporating the technology into Bing, Word and email). Alphabet’s growth in employee numbers is also expected to pressure profitability in a more subdued economic environment.

We have allowed for a softening in advertising in our base case expectations and believe Alphabet’s management will be under increasing pressure to take action to manage its cost base, as many other technology businesses have already done, including Amazon. Disruption to search remains an issue to monitor. However, we consider Alphabet to be at the forefront of developments in artificial intelligence and well placed to defend its core franchise.”