Tracking Al Gore's Generation Investment Management Portfolio - Q2 2022 Update

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John Vincent
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Summary

  • Generation Investment Management’s 13F portfolio value decreased from $21.84B to $18.35B this quarter.
  • They added Mastercard and increased Amazon.com, Microsoft, Trane Technologies, and Analog Devices while reducing Baxter International, Becton Dickinson, and Alphabet. They also dropped Visa.
  • The top three positions are Amazon.com, Microsoft, and Henry Schein, and they add up to ~18% of the portfolio.
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This article is part of a series that provides an ongoing analysis of the changes made to Generation Investment Management’s 13F portfolio on a quarterly basis. It is based on Al Gore’s regulatory 13F Form filed on 8/12/2022. Please visit our Tracking Al Gore’s Generation Investment Management Portfolio series to get an idea of their investment philosophy and our previous update for the fund’s moves in Q1 2022.

This quarter, Al Gore’s 13F portfolio value decreased ~16% from $21.84B to $18.35B. The number of positions remained steady at 46. The top five stakes are Amazon.com, Microsoft, Henry Schein, Equifax, and Baxter International. They account for around ~27% of the total 13F portfolio value. Generation Investment Management’s whitepapers and Al Gore’s books are good precursors for anyone interested in investing based on sustainability analysis.

New Stakes:

Mastercard Inc. (MA): MA is a 3.44% of the portfolio position purchased this quarter at prices between ~$309 and ~$379 and the stock currently trades at ~$336.

10x Genomics (TXG), Coupang (CPNG), and Gogoro Inc. (GGR): These are very small (less than ~0.65% of the portfolio each) stakes established during the quarter.

Stake Disposals:

Visa Inc. (V): The 2.86% V stake was purchased in Q4 2021 at prices between ~$190 and ~$234 and the stock currently trades at ~$205. The disposal this quarter was at prices between ~$189 and ~$228.

DENTSPLY SIRONA (XRAY): XRAY was a 1.41% portfolio stake built in 2014 at prices between $44 and $56. The position has wavered. Recent activity follows: Q2 2019 saw a ~20% selling at prices between $49 and $59 while Q1 2020 there was a ~15% stake increase at prices between ~$32 and $61. H1 2021 saw a ~63% reduction at prices between ~$52 and ~$69 while in Q4 2021 there was a similar increase at prices between ~$48 and ~$59. There was a ~45% selling last quarter at prices between ~$48 and ~$59. The elimination this quarter was at prices between ~$35 and ~$49. The stock is now at ~$34.

Sensata Technologies (ST): The bulk of the 1.37% ST position was purchased in Q2 2016 at prices between $33.50 and $39 and doubled over the next two years at higher prices. Q4 2018 also saw a ~28% increase at prices between $41 and $49.50. The position was reduced by ~45% last quarter at prices between ~$50.50 and ~$65. The disposal this quarter was at prices between ~$41 and ~$51. The stock currently goes for ~$42.

TE Connectivity (TEL): TEL was a 1.63% position purchased in Q4 2018 at prices between $71 and $87. Q4 2019 saw a ~18% stake increase at prices between $85.50 and $96 and that was followed with a ~40% increase next quarter at prices between $53 and $100. The three quarters through Q2 2021 saw a ~40% selling at prices between ~$96 and ~$139. Last five quarters saw the stake dropped at prices between ~$111 and ~$165. The stock currently trades at ~$129.

Stake Increases:

Amazon.com (AMZN): AMZN is currently the top position at 6.65% of the portfolio. It was purchased during H1 2021 at prices between ~$158 and ~$175 and the stock currently trades well below that range at ~$133. There was a ~40% stake increase over the last two quarters at prices between ~$104 and ~$170.

Note: the prices quoted above are adjusted for the 20-for-1 stock split in June.

Microsoft Corporation (MSFT): The large (top three) ~6% MSFT stake was primarily built this quarter at prices between ~$242 and ~$315 and the stock currently trades at ~$264.

Equifax Inc. (EFX): The large (top five) 4.64% EFX stake was purchased in Q1 2019 at prices between $91 and $115. Q4 2020 saw a whopping ~175% stake increase at prices between ~$137 and ~$195. Q2 to Q4 2021 saw the position sold down by ~70% at prices between ~$181 and ~$297. The stake was doubled last quarter at prices between ~$208 and ~$286. The stock is now at ~$197. This quarter saw a minor ~5% increase.

Jones Lang LaSalle Inc. (JLL): JLL is a 4.39% long-term position first purchased in 2008. By 2013, that original position was doubled to a fairly large ~5% stake thru consistent buying every year. The next two years saw selling: ~75% overall reduction at prices between $103 and $178. The pattern reversed in 2016: ~500% increase at prices between $91 and $141. That was followed with a ~30% increase in Q2 2017 at prices between $103 and $125. Since then, the activity has been minor. The stock currently trades at ~$176.

Note: Generation IM has a ~9% ownership stake in Jones Lang LaSalle.

Charles Schwab (SCHW): SCHW is a fairly large stake at 4.36% of the portfolio. The position was first purchased in Q4 2016 at prices between $31 and $40.50. Since then, the stake was increased substantially at prices between ~$30 and ~$50. Q1 2021 saw a ~37% selling at prices between ~$51.50 and ~$68. That was followed with a ~20% reduction next quarter at prices between ~$63.50 and ~$76. The stock is now at ~$74. Last four quarters have seen only minor adjustments.

Note: SCHW has seen a previous round-trip. A large ~7.2M share stake purchased in 2013 in the high-teens price-range was disposed the following year at much higher prices.

Trane Technologies plc (TT): TT is now a 3.72% of the portfolio position. The stake saw a ~150% stake increase last quarter at prices between ~$143 and ~$195. That was followed with a ~40% increase this quarter at prices between ~$121 and ~$155. The stock currently trades at ~$164.

Analog Devices (ADI): ADI position is now at 3.54% of the portfolio. It was established in Q2 2018 at prices between $87 and $102 and doubled next quarter at prices between $91 and $100. The stake has wavered. Recent activity follows. Q3 2020 saw a stake doubling at prices between ~$112 and ~$125. Q2 to Q4 2021 had seen the position reduced by ~47% at prices between ~$146 and ~$189. There was a ~80% stake increase this quarter at prices between ~$144 and ~$169. The stock currently trades at ~$154.

Clarivate Plc (CLVT): CLVT is a 3.50% of the portfolio stake purchased in Q3 2021 at prices between ~$21.50 and ~$27.15. There was a one-third stake increase next quarter at prices between ~$20.50 and ~$25.25. Last quarter also saw a similar increase at prices between ~$12.25 and ~$24.50. The stock currently trades near the low end of those ranges at $12.31. There was a minor ~2% increase this quarter.

Note: Generation IM has a ~6.5% ownership stake in Clarivate plc.

Applied Materials (AMAT): The ~3% AMAT stake was established in Q2 2019 at prices between ~$39 and ~$45. There was a ~45% increase this quarter at prices between ~$86 and ~$129. The stock currently trades at $96.51.

Intel Corporation (INTC): INTC is a ~3% of the portfolio position purchased during Q2 and Q3 2021 at prices between ~$52 and ~$68 and the stock currently trades well below that range at $31.46. There was a ~14% stake increase this quarter.

Gartner Inc. (IT): The ~3% of the portfolio IT stake was built in 2020 at prices between ~$83 and ~$164. The five quarters through Q4 2021 had seen a ~60% selling at prices between ~$120 and ~$340. The stock is now at ~$306. Last two quarters have seen only minor adjustments.

Salesforce, Inc. (CRM) and Twilio Inc. (TWLO): These two stakes were built over the last two quarters. The ~3% of the CRM stake was built at prices between ~$156 and ~$256. The stock currently trades near the low end of that range at ~$163. TWLO is a ~2% of the portfolio position primarily built this quarter at prices between ~$79 and ~$175. The stock is now below that range at ~$72.

Alibaba Group Holdings (BABA): BABA is a 2.81% of the portfolio position purchased in Q4 2020 at prices between ~$222 and ~$317. The stake was increased by ~150% over H1 2021 at prices between ~$206 and ~$271. That was followed with a ~25% stake increase next quarter at prices between ~$140 and ~$222. Q4 2021 saw a ~20% reduction while last quarter there was a similar increase. The stock currently trades at ~$92. There was a minor ~2% increase this quarter.

Thermo Fisher Scientific (TMO): TMO is a 2.65% portfolio position first purchased in Q3 2016 and more than doubled the following quarter at prices between $141 and $159. Q2 2017 saw another ~20% increase at prices between $152 and $176. There was a one-third selling in 2019 at prices between $221 and $327. 2020 had seen another ~60% selling at prices between ~$255 and ~$528. The stake was rebuilt in Q2 2021 at prices between ~$441 and ~$509. There was a ~50% reduction over the last two quarters at prices between ~$524 and ~$667. The stock currently goes for ~$569. This quarter saw a minor ~2% stake increase.

Carlisle Companies (CSL) and PTC Inc. (PTC): These two stakes were established in Q4 2021. CSL is a 2.22% of the portfolio position established at prices between ~$201 and ~$248 and it is now at ~$309. There were minor increases in the last two quarters. The 1.62% PTC position was purchased over the last three quarters at prices between ~$98 and ~$130 and it now goes for ~$120.

CBRE Group (CBRE): CBRE is a 2.22% of the portfolio position built during Q2 & Q3 2020 at prices between ~$35 and ~$56. The stock is now at ~$81. There was a ~45% selling over the last four quarters at prices between ~$80 and ~$109. This quarter saw a minor ~2% stake increase.

Abiomed Inc. (ABMD), Cognizant Technology (CTSH), MercadoLibre (MELI), Microchip Technology (MCHP), Nutanix (NTNX), Palo Alto Networks (PANW), Shopify (SHOP), SPDR S&P 500 ETF (SPY), Texas Instruments (TXN), Trimble Inc. (TRMB), and Toast Inc. (TOST): These small (less than ~2% of the portfolio each) stakes were increased this quarter.

Note: Generation IM’s original investment in Toast goes back to a funding round in 2017.

Stake Decreases:

Henry Schein (HSIC): HSIC became the largest position in Q4 2017 as it saw a ~550% stake increase at prices between $50.50 and $68.50. There was another ~22% increase next quarter at prices between $47 and $63.50. The five quarters thru Q3 2019 saw a combined ~30% reduction at prices between $58 and $71 while Q1 2020 there was a similar increase at prices between ~$43 and ~$74. The stock is now at $74.30 and the stake at 5.42% of the portfolio. Last nine quarters have seen only minor adjustments.

Note: The prices quoted above are adjusted for the spinoff of Covetrus Inc. last January. Also, HSIC split 2-for-1 in September 2017. Generation IM has a ~9.5% ownership stake in Henry Schein.

Baxter International (BAX): BAX is now the second largest 13F position at 4.56% of the portfolio. It was established in Q4 2019 at prices between $76.50 and $88.50 and increased by ~50% next quarter at prices between ~$72 and ~$93. Q1 2021 saw another ~20% stake increase at prices between ~$76 and ~$86. There was a ~40% selling over the last two quarters at prices between ~$64 and ~$90. The stock currently trades at $59.53.

Becton, Dickinson (BDX): The 4.30% BDX position was built in 2020 at prices between $201 and $284. There was a ~30% stake increase in Q4 2021 at prices between ~$236 and ~$257. This quarter saw a similar reduction at prices between ~$235 and ~$275. The stock currently trades at ~$263.

Alphabet Inc. (GOOG): GOOG stake is currently at 2.42% of the portfolio. The bulk of the stake was established in the three quarters thru Q1 2019 at prices between ~$49 and ~$63. Q2 & Q3 2019 had also seen a ~45% stake increase at prices between ~$56 and ~$63. The five quarters through Q4 2020 saw the stake reduced by ~60% at prices between ~$53 and ~$91. Q4 2021 saw another ~20% selling at prices between ~$133 and ~$151. That was followed with a ~50% reduction this quarter at prices between ~$106 and ~$145. The stock currently trades at ~$112.

Note: the prices quoted above are adjusted for the 20-for-1 stock split in July.

Cooper Companies (COO): The bulk of the 2.15% position in COO was purchased in Q4 2016 at prices between $159 and $183. The original stake was doubled in Q1 2018 at prices between $218 and $251 and that was followed with a ~37% increase next quarter at prices between $218 and $237. There was a ~25% reduction in Q2 2021 at prices between ~$372 and ~$412. Last quarter also saw a ~15% selling at prices between ~$380 and ~$428. The stock currently trades at ~$315. This quarter saw a ~8% trimming.

STERIS plc (STE): STE is a 1.35% of the portfolio stake primarily built in Q1 2021 at prices between ~$171 and ~$203. There was a ~60% selling over the last three quarters at prices between ~$193 and ~$253. The stock currently trades at ~$210.

Huazhu Group (HTHT), Illumina Inc. (ILMN), and Taiwan Semi (TSM): These very small (less than ~1% of the portfolio each) stakes were reduced during the quarter.

Kept Steady:

Remitly Global (RELY): RELY had an IPO last September. Shares started trading at ~$38 and currently goes for ~$11.75. Generation IM’s stake is at 0.46% of the portfolio.

Note: Generation IM has a 6.75% ownership stake in the business.

SOPHiA GENTEICS (SOPH): Sophia Genetics had an IPO last July. Shares started trading at ~$16.75 and currently goes for ~$3. Generation IM’s 0.13% of the portfolio stake goes back to a funding round in 2019.

Note: Generation IM has a 10.6% ownership stake in the business.

Asana Inc. (ASAN) and Proterra Inc. (PTRA): These minutely small (less than ~0.20% of the portfolio each) stakes were kept steady this quarter.

Note: Generation IM’s original investment in Proterra goes back to a funding round in 2017.

Below is a spreadsheet that highlights the changes to Al Gore's Generation Investment Management 13F stock portfolio as of Q2 2022:

Al Gore - Generation IM's Q2 2022 13F Report Q/Q Comparison

Al Gore - Generation IM's Q2 2022 13F Report Q/Q Comparison (John Vincent (author))

Source: John Vincent. Data constructed from Generation IM’s 13F filings for Q1 2022 and Q2 2022.

This article was written by

John Vincent profile picture
21.94K Followers
Focused on cloning strategies by analyzing 13F reports of a curated set of around fifty super-investors and generating Absolute Returns thru exploiting inefficiency, volatility, and momentum.

Disclosure: I/we have a beneficial long position in the shares of AMZN, CPNG, GGROW, GOOGL, INTC, PTRA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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