In the second quarter of 2026, Sir Chris Hohn's TCI Fund Management showcased its high-conviction style by initiating a significant bet on the U.S. infrastructure sector. The fund, known for its concentrated, long-term holdings, reported a portfolio value of $52.77 billion. While massive positions in GE, Visa, and Moody's still anchor the fund, the most notable changes signal a distinct rotation. TCI's core investment philosophy favors companies with strong competitive advantages and long-term compounding potential.
The most significant moves were the establishment of new, high-conviction positions in Martin Marietta Materials (MLM) and Vulcan Materials (VMC), the two largest U.S. suppliers of construction aggregates. This new thematic bet, representing a combined 2.81% of the portfolio, suggests a bullish outlook on infrastructure, data center construction, and industrial reshoring. These additions were coupled with a significant 12% boost to the fund's stake in Alphabet (GOOG), solidifying it as the fund's sole mega-cap tech holding.
To fund these new wagers, TCI completely exited its long-held position in Microsoft (MSFT). The sale of the $1 billion-plus stake marks a decisive pivot within the technology sector, favoring Alphabet's position. The move follows a substantial reduction in the Microsoft holding in the previous quarter, reportedly due to concerns about AI's potential to disrupt established software models. This filing underscores TCI's willingness to make large-scale portfolio shifts when its long-term thesis changes, even in well-established names.