Matthias Nareyek
Matthias Nareyek
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 2/14/2024. 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 Q3 2023.
This quarter, Al Gore’s 13F portfolio value increased from $19B to $22.06B. The number of positions increased from 43 to 45. The top five stakes are Amazon.com, Microsoft, Applied Materials, Equifax, and Thermo Fisher Scientific. They account for around one-third 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.
Accenture plc (ACN) and Veralto Corp (VLTO): ACN is a 1.30% of the portfolio stake established this quarter at prices between ~$290 and ~$355 and the stock currently trades well above that range at ~$378. The VLTO stake came about as a result of the separation from Danaher. They had a position in Danaher for which they received these shares.
SPDR S&P 500 Trust ETF (SPY): The minutely small 0.12% stake in SPY was dropped during the quarter.
Equifax Inc. (EFX): The 4.32% 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 in the next quarter at prices between ~$208 and ~$286. The stock is now at ~$267. There was a ~30% selling over the last three quarters, while this quarter saw an ~8% stake increase.
Thermo Fisher Scientific (TMO): TMO is a 4.29% 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 two quarters through Q1 2022 at prices between ~$524 and ~$667. Q1 2023 saw a two-thirds increase at prices between ~$535 and ~$605. That was followed by a ~12% increase during the last two quarters. The stock currently goes for ~$572. This quarter saw a ~7% stake increase.
Nutanix (NTNX): The 3.73% NTNX stake was established in Q2 2019 at prices between ~$25 and ~$43. The stock currently trades at ~$59. H1 2023 saw a ~25% trimming, while the last quarter saw a minor ~2% increase. This quarter also saw a similar increase.
Note: they have a ~7.1% ownership stake in the business.
Danaher Corp. (DHR): DHR is a 3.17% of the portfolio position established during H1 2023 at prices between ~$225 and ~$277 and the stock currently trades at ~$256. The last two quarters also saw a ~22% stake increase.
Trimble Inc. (TRMB): The ~3% TRMB position was established last quarter at prices between ~$49 and ~$56. This quarter saw a ~90% stake increase at prices between ~$41 and ~$54. The stock currently trades above their purchase price ranges at $60.91.
Baxter International (BAX), DENTSPLY SIRONA (XRAY), H World Group (HTHT), and Salesforce.com (CRM): These small (less than ~2.5% of the portfolio each) stakes were increased this quarter.
Amazon.com (AMZN): AMZN is currently the largest position at ~9% of the portfolio. It was purchased during H1 2021 at prices between ~$158 and ~$175. There was a ~40% stake increase during H1 2022 at prices between ~$104 and ~$170. The stock currently trades at ~$173. The four quarters through Q2 2023 saw minor increases, while the last two quarters saw minor trimming.
Microsoft Corporation (MSFT): MSFT is currently the second-largest stake at 8.88% of the portfolio. It was primarily built during Q2 2022 at prices between ~$242 and ~$315. Q1 2023 saw a ~30% stake increase at prices between ~$222 and ~$288. The stock currently trades at ~$408. There was a minor ~5% stake increase last quarter and a ~3% trimming this quarter.
Applied Materials (AMAT): The large (top three) 5.41% AMAT stake was established in Q2 2019 at prices between ~$39 and ~$45. There was a ~45% increase during Q2 2022 at prices between ~$86 and ~$129. That was followed by a ~38% further increase over the four quarters through Q2 2023. The stock currently trades at ~$198. There was a ~12% trimming this quarter.
Gartner, Inc. (IT): The 4.18% 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 ~$466. The last several quarters saw only minor adjustments.
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 through Q3 2019 saw a combined ~30% reduction at prices between $58 and $71 while in Q1 2020 there was a similar increase at prices between ~$43 and ~$74. Since then, there have only been minor adjustments. The stock is now at $76.49 and the stake at 4.11% of the portfolio.
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% ownership stake in Henry Schein.
Analog Devices (ADI): ADI position is now at ~4% of the portfolio. It was established in Q2 2018 at prices between $87 and $102 and doubled in the next quarter at prices between $91 and $100. The stake has wavered. Recent activity follows. There was an ~80% stake increase in Q2 2022 at prices between ~$144 and ~$169. H2 2022 saw a ~15% further increase, while the last quarter saw a ~15% selling at prices between ~$172 and ~$199. The stock currently trades at ~$188. This quarter saw marginal trimming.
Jones Lang LaSalle Inc. (JLL): JLL is a 3.60% long-term position first purchased in 2008. By 2013, that original position was doubled to a fairly large ~5% stake through 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 ~$186.
Note: Generation IM has a ~9% ownership stake in Jones Lang LaSalle.
Trane Technologies plc (TT): TT is now at 3.35% of the portfolio position. The stake saw a ~150% stake increase in Q1 2022 at prices between ~$143 and ~$195. That was followed with a ~40% increase next quarter at prices between ~$121 and ~$155. There was a ~30% selling in the last three quarters. That was followed by a ~24% reduction this quarter at prices between ~$184 and ~$244. The stock currently trades at ~$284.
Texas Instruments (TXN): The bulk of the 3.26% stake in TXN was established during the two quarters through Q1 2023 at prices between ~$148 and ~$185. The stock is now at ~$163. The last three quarters saw marginal trimming.
CBRE Group (CBRE): CBRE is a 3.25% of the portfolio position built during Q2 & Q3 2020 at prices between ~$35 and ~$56. There was a ~45% selling over the four quarters through Q1 2022 at prices between ~$80 and ~$109. Q2 2023 saw a ~45% increase at prices between ~$70 and ~$81. The stock is now at $91.20. This quarter saw a minor ~2% trimming.
MercadoLibre (MELI): The ~3% of the portfolio stake in MELI was built during the five quarters through Q3 2022 at prices between ~$635 and ~$1950. The stock is now at ~$1580. There was a ~50% reduction in the last four quarters.
Twilio Inc. (TWLO): TWLO is a 2.92% of the portfolio position primarily built during Q2 2022 at prices between ~$79 and ~$175. There was a two-thirds stake increase during H2 2022 at prices between ~$43 and ~$98. H1 2023 also saw a ~19% further increase. The stock is now at $59.75. There was marginal trimming in the last two quarters.
Mastercard Inc. (MA): MA is a 2.55% of the portfolio position purchased during Q2 2022 at prices between ~$309 and ~$379. There was a ~20% selling during Q2 2023 at prices between ~$360 and ~$394. That was followed by a ~7% trimming last quarter. This quarter also saw a minor ~2% trimming. The stock currently trades at ~$479.
Charles Schwab (SCHW): SCHW is currently at 2.49% of the portfolio. The stake was first purchased in Q4 2016 at prices between $31 and $40.50. Since then, the position 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 $65.65. There was a ~15% stake increase during Q3 2022 while the last five quarters saw a ~50% reduction.
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.
Waters Corp (WAT): WAT is a 2.46% of the portfolio position purchased during Q2 2023 at prices between ~$249 and ~$312. There was a ~14% stake increase last quarter at prices between ~$260 and ~$297. This quarter saw marginal trimming. The stock currently trades at ~$338.
Becton, Dickinson (BDX): The ~2% 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. Q2 2022 saw a similar reduction at prices between ~$235 and ~$275. That was followed with a ~40% further selling during Q4 2022 at prices between ~$218 and ~$257. The stock currently trades at ~$239. There was marginal trimming in the last four quarters.
10x Genomics (TXG), Carlisle Companies (CSL), Clarivate Plc (CLVT), Cooper Companies (COO), Coupang (CPNG), Cognizant Technology (CTSH), Freshworks Inc. (FRSH), Microchip Technology (MCHP), Palo Alto Networks (PANW), Remitly Global (RELY), STERIS plc (STE), Tigo Energy (TYGO), Toast, Inc. (TOST), and Veeva Systems (VEEV): These small (less than ~2.25% of the portfolio each) stakes were reduced this quarter.
Note: they have significant ownership stakes in the following businesses: Clarivate plc, Remitly Global, Tigo Energy, and Toast Inc.
SOPHiA GENETICS (SOPH): Sophia Genetics had an IPO last July. Shares started trading at ~$16.75 and currently go for $5. Generation IM’s 0.14% of the portfolio stake goes back to a funding round in 2019.
Note: Generation IM has a ~10.5% ownership stake in the business.
Asana, Inc. (ASAN), and Gogoro Inc. (GGR): These minutely small (less than ~0.20% of the portfolio each) stakes were kept steady this quarter.
Below is a spreadsheet that highlights the changes to Al Gore's Generation Investment Management 13F stock portfolio as of Q4 2023:
Al Gore - Generation IM Portfolio - Q4 2023 13F Report Q/Q Comparison (John Vincent (author))
Source: John Vincent. Data constructed from Generation IM’s 13F filings for Q3 2023 and Q4 2023.
Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.