In this article, we will discuss Billionaire Chris Hohn’s 8 Stock Picks with Huge Upside Potential.
The Children’s Investment Fund Management, also known as TCI Fund Management, is a British hedge fund firm headquartered in London and founded in 2003 by Sir Christopher Anthony Hohn. Hohn, a British billionaire and Harvard MBA graduate (Baker Scholar), also serves as the fund’s portfolio manager. TCI is distinguished by its value-oriented, fundamental investment philosophy and its focus on long-term, high-conviction positions in globally competitive businesses. The fund employs a private equity-style approach to public market investing, relying on deep fundamental research, constructive engagement with company management, and a willingness to use shareholder activism when necessary to drive performance. Known for its concentrated portfolio structure, the TCI Master Fund maximizes alpha by targeting high-quality companies with sustainable competitive advantages and predictable free cash flow.
TCI’s investment strategy includes opportunistic ventures into corporate transformations and special situations. In line with its activist reputation, the firm is prepared to exert influence on company direction and governance when it deems necessary to unlock shareholder value. This assertive approach has helped cement TCI’s reputation as one of the most successful and influential hedge funds in the world.
A significant aspect of TCI’s operations is its real estate lending business, which was launched in 2014 under the TCI Real Estate Partners Lending Funds. These funds invest alongside The Children’s Investment Fund Foundation (CIFF), the philanthropic arm initially supported by the fund’s profits. The lending strategy centers on first mortgage and senior secured lending for high-quality assets, with a particular focus on prime locations in major North American and European cities. This real estate arm reflects TCI’s broader investment philosophy, seeking security, quality, and long-term value.
As of Q4 2024, TCI managed $42.4 billion in securities across just nine core stock holdings, reflecting its highly concentrated and conviction-driven investment approach. The firm’s blend of fundamental analysis, disciplined value investing, and strategic activism continues to position it as a powerful force in global capital markets. Through its unique alignment of investment and philanthropic missions, TCI also exemplifies how hedge funds can blend financial performance with broader societal impact.
Now that we have sufficient context, let’s analyze billionaire Chris Hohn’s 8 stock picks with huge upside potential.
Chris Hohn
Our Methodology
For this article, we searched through TCI Fund Management’s Q4 2024 13F filings to identify billionaire Chris Hohn’s stock picks with the highest upside potential. We compiled the equities with upside potential higher than 8% at the time of writing this article and analyzed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
Billionaire Chris Hohn’s 8 Stock Picks with Huge Upside Potential
8. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders as of Q4: 181
TCI Fund Management’s Equity Stake: $5.31 Billion
Upside Potential as of May 6: 8.91%
Visa Inc. (NYSE:V) is a global leader in digital payments, enabling electronic fund transfers through a vast network of credit, debit, and prepaid cards accepted in over 200 countries. Headquartered in San Francisco, Visa operates at the heart of the global financial infrastructure, benefiting from the ongoing shift toward cashless transactions and digital commerce.
In its most recent earnings report for the quarter ended March 2025, Visa Inc. (NYSE:V) delivered earnings of $2.76 per share, surpassing consensus expectations of $2.68 and marking a 2.99% earnings surprise. This performance also reflects year-over-year EPS growth from $2.51, underscoring consistent operating leverage and strong execution. This followed a similarly strong previous quarter, where the company posted $2.75 per share against a projected $2.66, indicating a trend of outperformance.
Revenue for the quarter reached $9.59 billion, modestly beating analyst expectations and growing from $8.78 billion in the same period last year. This steady revenue expansion highlights Visa Inc. (NYSE:V)’s resilience and scale advantages amid varying macroeconomic conditions. The company continues to benefit from global consumer spending, cross-border transaction volume growth, and broader adoption of electronic payments across emerging markets.
Visa Inc. (NYSE:V) is also a cornerstone holding in TCI Fund Management’s portfolio, representing 12.51% of its total assets with over 16 million shares held. This sizable allocation reflects billionaire investor Chris Hohn’s conviction in Visa’s ability to generate long-term value. The stock’s current upside potential of 8.91% positions it as among the stock picks with huge upside potential in TCI’s portfolio, especially given its robust fundamentals and dominant market position.
With a proven track record of earnings beats, global scale, and secular tailwinds from digital payment growth, Visa Inc. (NYSE:V) stands out as a high-conviction holding with meaningful upside potential for hedge fund portfolios focused on compounding capital.
7. Moody’s Corporation (NYSE:MCO)
Number of Hedge Fund Holders as of Q4: 91
TCI Fund Management’s Equity Stake: $6.27 Billion
Upside Potential as of May 6: 9.17%
Moody’s Corporation (NYSE:MCO) is a leading provider of credit ratings, research, and risk analysis through its subsidiaries Moody’s Investors Service and Moody’s Analytics. Founded in 1909 and headquartered in New York, Moody’s plays a critical role in global financial markets by offering credit risk assessments on sovereign, corporate, and structured finance debt, while also supplying advanced analytics and modeling tools to financial institutions.
In the first quarter of 2025, Moody’s Corporation (NYSE:MCO) reported adjusted earnings of $3.83 per share, outperforming consensus estimates of $3.56. This marks a 14% increase compared to the same period last year, reflecting both resilient demand for credit assessments and solid operational execution. Revenue reached $1.92 billion, exceeding analyst expectations of $1.88 billion and rising 8% year over year, with both the Ratings and Analytics segments contributing to the growth.
Despite a 9% year-over-year rise in total expenses to $1.08 billion, including $33 million tied to its ongoing Strategic and Operational Efficiency Restructuring Program, Moody’s Corporation (NYSE:MCO) maintained robust profitability. Adjusted operating income climbed 10% to $994 million, and the operating margin improved to 51.7%, up from 50.7% in the prior year.
Moody’s Corporation (NYSE:MCO) ended the quarter with $2.2 billion in cash, down from $2.97 billion at year-end 2024, as it continued returning capital to shareholders, repurchasing 0.8 million shares at an average price of $481.77. The company maintained a solid liquidity position, supported by $6.8 billion in outstanding debt and an additional $1.25 billion available under its revolving credit facility.
With an estimated upside potential of 9.17%, Moody’s Corporation (NYSE:MCO) offers an appealing mix of defensive business characteristics, steady earnings growth, and disciplined capital allocation. Its dominant market position and consistent performance make it an attractive candidate for portfolios seeking quality exposure in financial services with room for continued appreciation.
L1 Capital International Fund made the following comment about Moody’s Corporation (NYSE:MCO) in its Q3 2023 investor letter:
“Portfolio adjustments during the September 2023 quarter were modest, diversified, but meaningful. In total around 10% of the Fund was divested and reinvested into opportunities we consider provide a superior risk-adjusted base case return.
We continued to trim our investment in high-quality technology businesses such as Intuit, mentioned previously. These adjustments were purely for valuation considerations, rather than any business concerns and some of these companies remain significant portfolio holdings.
The Fund’s remaining investment in Moody’s Corporation (NYSE:MCO)’s was fully divested during the September quarter. Moody’s is the world’s leading credit rating, risk assessment and analytics business. The core credit ratings business is largely a duopoly with S&P Global, with modest competition from Fitch Ratings and regional competitors – a great example of our preferred ‘Noah’s Ark’ industry structure.
The share price of Moody’s has been volatile over recent times, often reacting too greatly to changes in short-term capital markets conditions. During the quarter we took advantage of positive market sentiment to divest our holding at a share price we considered to be above fair value. Moody’s is very well managed and ‘ticks all our boxes’ for one of the world’s highest-quality businesses. The company has moved from our Portfolio to our Bench of potential investments. Having a Bench of ‘ready to go’ investment opportunities is a core aspect of our investment process. We continue to analyse Moody’s as if we owned it and are excited by the pull-back in the share price from recent highs.”
6. GE Aerospace (NYSE:GE)
Number of Hedge Fund Holders as of Q4: 101
TCI Fund Management’s Equity Stake: $7.67 Billion
Upside Potential as of May 6: 9.88%
Headquartered in Evendale, Ohio, GE Aerospace (NYSE:GE) is a cornerstone of the global aviation industry, providing advanced propulsion systems and aftermarket services for commercial and military aircraft. The company has emerged as a dominant aircraft engine manufacturer due to its historical leadership, strategic partnerships, and technological investments.
For the first quarter of 2025, GE Aerospace (NYSE:GE) posted robust performance across key metrics. Total orders rose 12% year over year to $12.3 billion, while GAAP revenue increased 11% to $9.9 billion. Adjusted revenue also saw an 11% lift, reaching $9.0 billion. The company delivered GAAP profit of $2.2 billion, up 13%, while adjusted operating profit surged 38% to $2.1 billion. Margins expanded significantly, with adjusted operating margin improving by 460 basis points to 23.8%.
Earnings per share reflected this momentum. Adjusted EPS came in at $1.49, representing a sharp 60% increase from the prior year, while GAAP EPS was $1.83, up 16%. Although free cash flow declined 14% to $1.4 billion, the company maintained healthy cash generation amid rising orders and stronger commercial services performance.
Despite macroeconomic headwinds, particularly trade-related uncertainty due to renewed tariffs, GE Aerospace (NYSE:GE) has reaffirmed its full-year earnings guidance. CEO H. Lawrence Culp, Jr. has actively engaged with U.S. leadership to advocate for a return to tariff-free trade under the Civil Aircraft Agreement, citing its role in sustaining a $75 billion annual trade surplus for the industry.
With a price target of $229.58 and an upside potential of 9.88%, GE Aerospace (NYSE:GE) is among billionaire Chris Hohn’s stock picks with huge upside potential. Backed by strong execution, expanding margins, and a high-growth end market, GE stands out as a top conviction holding for hedge fund portfolios focused on long-term capital gains.
Aristotle Atlantic Core Equity Strategy stated the following regarding GE Aerospace (NYSE:GE) in its Q4 2024 investor letter:
“GE Aerospace (NYSE:GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The industry has high entry barriers and is concentrated among few players. Despite its cyclical nature, the demand for travel is driven by global middle-class growth. Boeing and Airbus have long order books, ensuring steady demand for engines and spare parts. The company also benefits from high-margin services for existing aircraft fleets, with services accounting for 70% of its commercial engine business. GE Aerospace serves customers worldwide.
We see GE Aerospace making significant strides in its commercial engine business, which is expected to boost future services revenue growth. Over the past five years, the company has undergone substantial restructuring and simplification, including divesting its healthcare and energy businesses. The company now operates in three segments: Commercial Engines & Services (CES), Defense & Propulsion Technologies (DPT) and Insurance. Long-term revenue guidance is for high single-digit growth, and management has a goal of $10 billion in annual operating profit by 2028, with an expected 20% annual earnings growth. Following years of restructuring, we see GE Aerospace now positioned to return capital to shareholders through dividends and share repurchases.”
5. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders as of Q4: 99
TCI Fund Management’s Equity Stake: $5.18 Billion
Upside Potential as of May 6: 15.74%
S&P Global Inc. (NYSE:SPGI) is a premier provider of financial information and analytics, serving institutional investors, corporations, and government entities worldwide. Headquartered in New York City, the company delivers a comprehensive suite of services spanning credit ratings, market intelligence, commodity analytics, mobility solutions, and index development, most notably the widely followed S&P index.
In the first quarter of 2025, S&P Global Inc. (NYSE:SPGI) exceeded market expectations across the board. The company reported revenue of $3.78 billion, representing an 8% year-over-year increase and beating the consensus of $3.72 billion. Earnings per share came in at $4.37, outpacing the projected $4.23 and marking a 9% increase over the prior-year period. These results were driven by solid growth across its business segments, particularly in Market Intelligence and Indices, which benefited from sustained capital market activity and increasing demand for data-driven investment tools.
The firm also delivered significant margin expansion, improving operating margins by 240 basis points over the trailing twelve months. This operational efficiency reflects S&P Global Inc. (NYSE:SPGI)’s disciplined cost structure and high-margin business model. Additionally, the company returned over $900 million to shareholders through a combination of dividends and share repurchases, underlining its strong capital return policy.
With a diversified revenue base, recurring income streams, and robust pricing power, S&P Global Inc. (NYSE:SPGI) continues to be a strategic asset in financial services portfolios. Its strong quarterly performance reaffirms the company’s position as a high-quality compounder with dependable cash flow and earnings growth.
Among Hohn’s portfolio, S&P Global stands out with a notable upside potential of 15.74%, positioning it as one of the top stocks with significant growth prospects. The company has also seen increasing hedge fund interest; by the end of Q4 2024, 99 hedge funds out of 1,009 tracked by Insider Monkey held stakes in the company, up from 85 funds in the previous quarter. The total value of these holdings reached $10.52 billion, indicating rising confidence among institutional investors.
4. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
TCI Fund Management’s Equity Stake: $5.90 Billion
Upside Potential as of May 6: 16.08%
Microsoft Corporation (NASDAQ:MSFT), a leading multinational technology conglomerate headquartered in Redmond, Washington, delivered a strong third-quarter performance that surpassed analyst expectations across all key metrics. The company reported earnings per share of $3.46, beating the consensus estimate of $3.23, and reflecting an 18% year-over-year increase in net income to $25.8 billion. Revenue for the quarter reached $70.1 billion, up 13% from the same period last year, also outperforming the projected $68.53 billion.
Segment-wise, Microsoft Corporation (NASDAQ:MSFT)’s “Intelligent Cloud” division, which includes Azure and server products, generated $26.8 billion in revenue, a 21% year-over-year increase, driven by robust enterprise demand for AI infrastructure and cloud solutions. “Productivity and Business Processes,” home to Microsoft 365, LinkedIn, and Dynamics, posted revenue of $29.9 billion, up 10% year-on-year, while “More Personal Computing,” which includes Windows, Xbox, and Bing, brought in $13.4 billion, a 6% increase.
Capital expenditures rose sharply to $16.7 billion, up 52% year over year, exceeding analyst expectations and highlighting Microsoft Corporation (NASDAQ:MSFT)’s aggressive investment in AI and cloud infrastructure. While the company has recently paused or canceled several data center leases, the surge in spending underscores its commitment to scaling capacity in high-demand areas, particularly around AI workloads.
CEO Satya Nadella emphasized that AI and cloud technologies are becoming fundamental to business efficiency and innovation across industries. However, market concerns linger over potential oversupply in AI computing resources, particularly given Microsoft Corporation (NASDAQ:MSFT)’s $14 billion investment in OpenAI and the rapidly evolving landscape of generative AI.
Despite these uncertainties, Microsoft Corporation (NASDAQ:MSFT)’s diversified revenue streams, dominant position in enterprise software, and ongoing AI leadership position it well for continued long-term growth. The company’s ability to consistently outperform expectations reinforces its standing as a core holding in institutional portfolios.
3. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Holders as of Q4: 56
TCI Fund Management’s Equity Stake: $3.01 Billion
Upside Potential as of May 6: 18.62%
Canadian National Railway Company (NYSE:CNI), a major freight railway operator headquartered in Montreal, continues to demonstrate resilience and strategic agility in a volatile economic environment. For the first quarter of 2025, the company reported total revenues of $4.4 billion, marking a 4% increase year-over-year despite challenging winter conditions and modest volume growth. Diluted earnings per share rose 8% to $1.85, a clear sign of the company’s disciplined operational management and pricing power.
Operational metrics supported this financial performance. Revenue ton miles (RTMs) grew by 1% to 60.0 billion, while CN’s operating ratio—a key indicator of efficiency—improved by 20 basis points to 63.4%. This highlights the company’s ability to enhance profitability even in a low-growth volume environment. CEO Tracy Robinson noted a “strong start to the year,” emphasizing improved financial metrics and successful right-sizing of resources to match demand.
Canadian National Railway Company (NYSE:CNI) also delivered a notable 18% increase in free cash flow, which reached $626 million for the quarter. This was driven by both higher operating income and lower capital expenditures, reinforcing the company’s commitment to efficient capital allocation. Additionally, Canadian National Railway Company (NYSE:CNI) announced a 5% increase in its dividend for 2025, signaling strong confidence in the company’s financial outlook and a consistent focus on shareholder returns.
Among billionaire Chris Hohn’s stock picks with huge upside potential, Canadian National Railway Company (NYSE:CNI) stands out with a statistic of 18.62% due to its combination of financial discipline, infrastructure scale, and transcontinental reach. Its extensive North American network, coupled with improving margins and robust cash generation, positions the company as a compelling long-term investment. As trade dynamics evolve and intermodal demand grows, CN’s strategic positioning and operational efficiency could help unlock meaningful shareholder value over time.
Appalaches Capital stated the following regarding Canadian National Railway Company (NYSE:CNI) in its Q3 2024 investor letter:
“During the quarter, we established core positions in two railroads: Canadian National Railway Company (NYSE:CNI) and CSX Corporation (CSX). The investment thesis is simple. Domestic railroads have not seen volume growth over the last 20 years despite being the cheapest, cleanest, and safest form of freight transportation.4 The lack of volume growth and related share losses to trucking is due to the poor reliability of the networks. However, there is strong evidence to believe that this may not be the case going forward. It seems that investors are overweighting historical characteristics of the industry and not giving credit to recent and sustainable improvements in service metrics. If the rails are able to show any sign of sustained volume growth, our investment should perform very well.
The Canadian railroads have more or less operated at full capacity over the last two decades, while the U.S. networks have not. Why is that? There are a few reasons for the anemic volume growth domestically, but only one of which is not shared by the Canadian railroads: service. In 2017, had you shipped goods by rail in Canada, the odds that your shipment would arrive on time, or the “trip plan compliance” rate, was around 90% or higher. In the U.S., these levels were closer to 50%.5 Maybe you have a different opinion, but I am not particularly excited about using a shipping service that only has a coin flip’s chance of arriving on time, even if it may be more economical…” (Click here to read the full text)
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders as of Q4: 234
TCI Fund Management’s Equity Stake: $3.14 Billion
Upside Potential as of May 6: 21.29%
Alphabet Inc. (NASDAQ:GOOGL), a parent company of Google, remains one of the most dominant forces in the global technology sector. Among Chris Hohn’s stock picks, Alphabet stands out with a notable upside potential of 21.29%, positioning it as one of the top stocks with significant growth prospects. In the first quarter of 2025, the company delivered a strong financial performance, reporting earnings per share of $2.81 on revenue of $90.2 billion. Both figures exceeded analyst expectations, which called for EPS of $2.01 and revenue of $89.1 billion. This performance represents a significant year-over-year increase from Q1 2024, when Alphabet posted EPS of $1.89 on revenue of $80.5 billion.
The company’s advertising business remained the backbone of its earnings, bringing in $66.8 billion, slightly ahead of consensus estimates. Meanwhile, its cloud segment posted $12.2 billion in revenue, a sharp improvement from $9.5 billion a year earlier, although it narrowly missed forecasts. Alphabet Inc. (NASDAQ:GOOGL)’s focus on AI infrastructure and tools continues to position it well for long-term growth, with strategic investments enhancing both its consumer and enterprise offerings.
Institutional confidence in Alphabet Inc. (NASDAQ:GOOGL) is rising. By the end of Q4 2024, hedge fund ownership in the company increased substantially. A total of 234 hedge funds tracked by Insider Monkey held stakes in the company, up from 202 in the prior quarter, with aggregate holdings valued at $39.59 billion. This surge underscores a strong endorsement from professional investors.
However, Alphabet’s market dominance has come under legal scrutiny. In April 2025, a federal judge ruled that Google holds an illegal monopoly in online advertising, raising the possibility of enforced divestitures. This ruling follows an earlier antitrust decision against its search and ad units. While these legal risks remain material, Alphabet Inc. (NASDAQ:GOOGL)’s diversified revenue base and continued innovation in AI and cloud technologies suggest the company is well-equipped to weather regulatory challenges and deliver sustained growth.
Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”
1. Canadian Pacific Kansas City Limited (NYSE:CP)
Number of Hedge Fund Holders as of Q4: 74
TCI Fund Management’s Equity Stake: $3.97 Billion
Upside Potential as of May 6: 25.44%
Canadian Pacific Kansas City Limited (NYSE:CP), based in Calgary, has emerged as a transformative force in North American rail transportation following its 2023 acquisition of Kansas City Southern. The merger created the continent’s first single-line railway connecting Canada, the United States, and Mexico, offering customers a fully integrated logistics corridor across the three largest North American economies. Operating over 20,000 miles of rail with a workforce of approximately 20,000 employees, CP delivers freight transport, logistics, and supply chain solutions.
In the first quarter of 2025, Canadian Pacific Kansas City Limited (NYSE:CP) reported an 8% year-over-year increase in revenue to $3.8 billion. Operational efficiency also improved, with the operating ratio falling by 150 basis points to 62.5%. Safety performance reached new highs, with record improvements in both train accident frequency and personal injury rates. Reflecting its financial strength and shareholder-friendly capital strategy, the company raised its quarterly dividend by 20%.
Investor confidence continues to build. Chris Hohn’s TCI Fund Management held just under 55 million shares at the close of Q4 2024, underscoring long-term conviction in CP’s growth trajectory. Hedge fund interest followed suit, with 74 firms holding positions in the company, up from 52 in the prior quarter.
CP’s unique tri-national network is unlocking cross-border trade opportunities, particularly between Canada and Mexico. With more than $100 million in new revenue streams already realized, Canadian Pacific Kansas City Limited (NYSE:CP) is well-positioned to benefit from shifting trade dynamics, nearshoring trends, and growing demand for resilient supply chains.
With an upside potential of 25.44%, Canadian Pacific Kansas City Limited (NYSE:CP) is one of billionaire Chris Hohn’s stock picks with huge upside potential. Its strategic geographic reach, improving fundamentals, and growing institutional interest make it a compelling opportunity in the North American industrials sector.
Overall, CP ranks first among Billionaire Chris Hohn’s 8 stock picks with huge upside potential. While we acknowledge the potential of these stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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