Al Gore's Generation Investment Management Portfolio – Q1 2022 Update - Fix Bdsthanhhoavn

Al Gore’s Generation Investment Management Portfolio – Q1 2022 Update

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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 5/13/2022. 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 Q4 2021.

This quarter, Al Gore’s 13F portfolio value decreased from $24.33B to $21.84B. The number of positions decreased from 47 to 46. The top five stakes are Amazon.com, Baxter International, Becton Dickinson, Henry Schein, and Jones Lang LaSalle. They account for around ~28% 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:

Abiomed, Inc. (ABMD) and Shopify (SHOP): ABMD is a ~2% of the portfolio position purchased this quarter at prices between ~$277 and ~$366 and the stock currently trades just below that range at ~$270. SHOP is a minutely small 0.26% of the portfolio stake established during the quarter.

Stake Disposals:

Cisco Systems (CSCO): CSCO was a 2.29% of the portfolio position built in H2 2020 at prices between ~$35.50 and ~$48. There was a ~35% selling in Q3 2021 at prices between ~$53 and ~$60. That was followed with a ~42% selling last quarter at prices between ~$53 and ~$64. The disposal this quarter was at around the same price range. The stock currently trades at $45.79.

Guidewire Software (GWRE): The ~1% GWRE stake was established in H1 2021 at prices between ~$95 and ~$131. The stake was eliminated this quarter at prices between ~$84 and ~$113. It is now at $82.28.

StoneCo (STNE): STNE was a 0.34% stake established last quarter at prices between ~$15 and ~$39.50. It was sold this quarter at prices between $8.25 and $19.32. It currently trades at ~$12.50.

Stake Increases:

Amazon.com (AMZN): AMZN is currently the top position at 6.52% of the portfolio. It was purchased during H1 2021 at prices between ~$3152 and ~$3505 and the stock currently trades at ~$2525. Last two quarters had seen minor trimming while this quarter there was a ~6% increase.

Equifax Inc. (EFX): The 4.79% 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. Last three quarters saw the position sold down by ~70% at prices between ~$181 and ~$297. The stake was doubled this quarter at prices between ~$208 and ~$286. The stock is now at ~$204.

Clarivate Plc (CLVT): CLVT is a 3.48% of the portfolio stake purchased in Q3 2021 at prices between ~$21.50 and ~$27.15. There was a one-third stake increase last quarter at prices between ~$20.50 and ~$25.25. This quarter also saw a similar increase at prices between ~$12.25 and ~$24.50. The stock currently trades at $14.93.

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

Trane Technologies plc (TT): TT is now a 2.60% of the portfolio position. The stake saw a ~150% stake increase this quarter at prices between ~$143 and ~$195. The stock currently trades just below that range at ~$139.

Nutanix (NTNX): NTNX is a 2.54% position established in Q2 2019 at prices between $24.50 and $43.50 and it is now well below that range at $16.61. Generation IM has a ~10% ownership stake in Nutanix. Last few quarters have seen only minor adjustments.

Note: Generation IM has a ~9% ownership stake in Nutanix.

MercadoLibre (MELI): The 2.40% MELI stake saw a ~170% stake increase over the last two quarters at prices between ~$1297 and ~$1954. There was a stake doubling this quarter at prices between ~$882 and ~$1333. The stock currently trades well below those ranges at ~$837.

Alibaba Group Holding (BABA): BABA is a 2.21% 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. Last quarter saw a ~20% reduction while this quarter there was a similar increase. The stock currently trades at ~$97.50.

Carlisle Companies (CSL) and PTC Inc. (PTC): These two stakes were established last quarter. CSL is a 1.88% of the portfolio position established last quarter at prices between ~$201 and ~$248 and it is now at ~$262. There was a marginal increase this quarter. The ~1% PTC position was purchased over the last two quarters at prices between ~$102 and ~$130 and it now goes for ~$120.

Salesforce Inc. (CRM) and Twilio Inc. (TWLO): These two stakes were built this quarter. The 1.75% of the CRM stake saw a ~175% increase during the quarter at prices between ~$191 and ~$256. The stock currently trades at ~$188. TWLO is a 1.88% of the portfolio position primarily built this quarter at prices between ~$125 and ~$262. The stock is now at ~$109.

Cognizant Technology (CTSH), Microchip Technology (MCHP), Taiwan Semi (TSM), Texas Instruments (TXN), and Toast, Inc. (TOST): These very small (less than ~0.75% of the portfolio each) positions were increased this quarter.

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

Stake Decreases:

Baxter International (BAX): BAX is now the second-largest 13F position at 5.82% 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 similar reduction this quarter at prices between ~$77 and ~$90. The stock currently trades at $74.26.

Becton, Dickinson (BDX): The 5.48% BDX position was built in 2020 at prices between $201 and $284. There was a ~30% stake increase last quarter at prices between ~$236 and ~$257. The stock currently trades at ~$254. This quarter saw minor trimming.

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 ~$85 and the stake at ~5% of the portfolio. Last two years 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.

Jones Lang LaSalle Inc. (JLL): JLL is a ~5% 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 ~$195.

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

Alphabet Inc. (GOOG): GOOG stake is currently at ~5% of the portfolio. The bulk of the stake was established in the three quarters thru Q1 2019 at prices between $975 and $1268. Q2 & Q3 2019 had also seen a ~45% stake increase at prices between $1110 and $1250. The five quarters through Q4 2020 saw the stake reduced by ~60% at prices between ~$1055 and ~$1825. Last quarter saw another ~20% selling at prices between ~$2665 and ~$3014. The stock currently trades at ~$2355. There was a minor ~7% trimming this quarter.

Charles Schwab (SCHW): SCHW is a fairly large stake at 4.45% 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 $71.67. There was minor trimming in the last three quarters.

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.

Visa Inc. (V): The 2.86% V stake was purchased last quarter at prices between ~$190 and ~$234 and the stock currently trades at ~$215. There was marginal trimming this quarter.

Gartner Inc. (IT): The ~3% of the portfolio IT stake was built in 2020 at prices between ~$83 and ~$164. Last five quarters had seen a ~60% selling at prices between ~$120 and ~$340. The stock is now at ~$269. There was marginal trimming this quarter.

Intel Corporation (INTC): INTC is a ~3% of the portfolio position purchased during the last two quarters at prices between ~$52 and ~$68 and the stock currently trades below that range at $44.84. Last two quarters have seen only minor adjustments.

Cooper Companies (COO): The bulk of the 2.63% 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. This quarter also saw a ~15% selling at prices between ~$380 and ~$428. The stock currently trades at ~$353.

Applied Materials (AMAT): The 2.57% AMAT stake was established in Q2 2019 at prices between ~$39 and ~$45. The stock currently trades at ~$117. Last several quarters have seen only minor adjustments.

STERIS plc (STE): STE is a 2.41% of the portfolio stake primarily built in Q1 2021 at prices between ~$171 and ~$203. There was a ~20% selling last quarter at prices between ~$204 and ~$245. The stock currently trades at ~$227. This quarter also saw a ~12% trimming.

Thermo Fisher Scientific (TMO): TMO is a 2.38% 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 ~$570.

CBRE Group (CBRE): CBRE is a 2.27% of the portfolio position built during Q2 & Q3 2020 at prices between ~$35 and ~$56. The stock is now at $82.49. There was a ~45% selling over the last four quarters at prices between ~$80 and ~$109.

Analog Devices (ADI): ADI position is now at 1.86% 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. Last three quarters had seen the position reduced by ~47% at prices between ~$146 and ~$189. The stock currently trades at ~$169. This quarter saw marginal trimming.

TE Connectivity (TEL): TEL is 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 four quarters have seen a ~55% reduction at prices between ~$120 and ~$165. The stock currently trades at ~$132.

Illumina, Inc. (ILMN): ILMN is a 1.52% of the portfolio position purchased in Q4 2019 at prices between $288 and $336 and increased by ~185% next quarter at prices between $209 and $336. There was a ~30% selling in Q2 2020 at prices between $257 and $373. Q4 2020 saw a two-thirds increase at prices between ~$293 and ~$371 while in the next three quarters there was a ~52% reduction at prices between ~$361 and ~$525. The stock is now at ~$249. Last two quarters have seen only minor adjustments.

DENTSPLY SIRONA (XRAY): XRAY is 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 last quarter there was a similar increase at prices between ~$48 and ~$59. There was a ~45% selling this quarter at prices between ~$48 and ~$59. The stock is now at $41.80.

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% this quarter at prices between ~$50.50 and ~$65. The stock currently goes for $49.34.

Huazhu Group (HTHT), Microsoft Corporation (MSFT), Palo Alto Networks (PANW), SPDR S&P 500 ETF (SPY), and Trimble Inc. (TRMB): These small (less than ~1.20% 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 0.50% of the portfolio.

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

SOPHiA GENETICS (SOPH): SOPH had an IPO in July. Shares started trading at ~$16.75 and currently goes for $3.80. Generation IM’s 0.24% 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 Q1 2022:

Al Gore - Generation IM's Q1 2022 13F Report Q/Q Comparison

Al Gore – Generation IM’s Q1 2022 13F Report Q/Q Comparison (John Vincent (author))

tags: #Gores #Generation #Investment #Management #Portfolio #Update

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