Sir Christopher Hohn's Children’s Investment Fund (TCI) enjoyed sizable returns from GE Aerospace (NYSE:GE), Safran (EPA:SAF) and Vinci (EPA:DG) during the first quarter, at 20%, 19% and 18%, respectively. According to the fund’s Q1 letter to investors, which was obtained by Hedge Fund Alpha, Alphabet (NASDAQ:GOOGL) was its worst performer by far, losing 17%. Microsoft (NASDAQ:MSFT) also dropped significantly, losing 12% for the fund.
Also see: Christopher Hohn on Why Alphabet Is His Riskiest Investment [Exclusive]
Aerospace holdings: GE Aerospace
In their portfolio review, the TCI team said GE Aerospace posted solid earnings for 2024, with 10% growth in revenue, 30% in operating profits, and 56% in earnings per share. They met with the company’s CEO and chief financial officer during Q1, and they called for mid-teens aftermarket growth this year due to a robust pricing environment.
TCI believes GE Aerospace is well positioned, noting its engines on the leading aircraft programs. Meanwhile, the company continues to take market share on the two aircraft that can use two different engines. Management maintains that this trend is because their engines are more reliable.
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