Wednesday, June 12, 2024

TCI emerges as most successful hedge fund of 2023

TCI Fund Management founder Sir Chris Hohn

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TCI Fund Management generated $12.9bn of investor gains last year, more than any other hedge fund, powered by winning bets in buoyant equity markets.

Sir Chris Hohn’s London-based Power List firm, which manages $50bn, has a concentrated long-only portfolio featuring blue-chips including Airbus and Alphabet, both of which surged in 2023.

Google-owner Alphabet’s increase came after a sizeable decline in 2022 and was emblematic of the huge increase enjoyed last year by big-cap US tech stocks, especially the so-called “Magnificent Seven,” fuelled in part by AI breakthroughs.

TCI has now made $41.3bn for investors since launch in 2004, according to the calculations by LCH Investments, which ranks the Top 20 hedge funds by all-time investor gains every January.

Marking its twentieth anniversary in 2024, TCI recently announced plans to open just its third global office in Abu Dhabi, headed by global head of investor relations Bronwyn Owen.

Andreas Halvorsen’s Viking Global was another big winner on the equities side, making $6bn for investors. Only Ken Griffin’s Citadel made more for investors last year, $8.1bn, but still trailed TCI’s number.

Citadel wins since inception, with $74bn made for investors, and leading another strong year for multi-managers, with a quartet responsible for $21bn, almost a third, of the Top 20’s net gains.

Which hedge funds made the most money for their investors in 2023?

  1. TCI Fund Management: $12.9bn
  2. Citadel: $8.1bn
  3. Viking: $6bn
  4. Millennium: $5.7bn
  5. Elliott: $5.5bn
    Source: LCH Investments