Billionaire Richard Chilton’s Latest Portfolio: Top 5 Stock Picks

4. Canadian Pacific Railway Limited (NYSE:CP)

Chilton Investment Company’s stake value: $227 million

Percentage of Chilton Investment Company’s Portfolio: 6.34%

Number of Hedge Fund Holders: 42

Canadian Pacific Railway Limited (NYSE:CP) is a Canadian company headquartered in Calgary that operates a freight railway system in Canada and the United States. The company transports a host of products such as coal, fertilizers, grain, minerals, and forest products.

Canadian Pacific Railway Limited (NYSE:CP) posted revenue growth of 7% during its second fiscal quarter as it was helped by fuel surcharges and foreign exchange fluctuations despite a small drop in volumes shipped. The company is also on track to develop the only direct Canada to Mexico railroad route, and it is using a strong price environment to lock in prices as much as 6% higher over current rates for future contracts.

Mr. Chilton’s investment firm owned 3.2 million Canadian Pacific Railway Limited (NYSE:CP) shares as part of its investments for the second quarter of this year, allowing it to hold a $227 million stake in the company. Insider Monkey’s 895 hedge fund survey for this year’s June quarter saw 42 having invested in the company.

Chris Hohn’s TCI Fund Management is Canadian Pacific Railway Limited (NYSE:CP)’s largest investor in our database. It owns 55 million shares that are worth $3.9 billion.

Pershing Square Holdings mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

The demand outlook for CP continues to improve, especially given the current geopolitical environment. Russia’s invasion of Ukraine and the resulting supply disruptions have boosted demand for Canadian exports such as grain and potash. Deglobalization has also increased the likelihood of major North American onshoring and energy production, which will accelerate CP’s volume growth in the future. Total volumes declined by 2% in the second quarter due to the smaller than average Canadian grain harvest, while volumes excluding grain increased by 5%. The grain headwind will flip to a tailwind in the fall as CP anticipates a normal grain crop, which supports management’s double-digit volume and revenue growth outlook for the second half of 2022. …” (Click here to read the full text)