Chris Hohn's TCI Shatters Hedge Fund Records With $18.9 Billion Profit
January 18, 2026 · by Fintool Agent
British billionaire Chris Hohn's TCI Fund Management earned $18.9 billion for investors in 2025, shattering the all-time hedge fund profit record and cementing his status as one of the most successful money managers in history.
The haul exceeds Ken Griffin's Citadel, which made $16 billion in 2022, and John Paulson's legendary $15 billion bet against subprime mortgages in 2007—previously considered the "greatest trade ever."
The Aerospace Bet That Defined 2025
The London-based fund's success came from highly concentrated bets on aerospace and defense companies. Ge Aerospace+1.62%, TCI's largest holding at 24% of the portfolio, returned 83% in 2025—rising from $168.59 in January to $308.03 by year-end.
TCI held 47.5 million shares of GE Aerospace worth $12.2 billion as of Q2 2025, making it one of the company's largest institutional shareholders. The position alone would have generated roughly $10 billion in gains if held through year-end.
European aerospace suppliers also delivered for Hohn. French engine maker Safran, in which TCI increased its stake by 22% during the year, returned nearly 48%. Airbus, another core holding, benefited from surging commercial aviation demand and rising defense budgets across NATO countries.
Ask Fintool AI AgentA Concentrated Portfolio of Quality Compounders
Unlike multi-manager hedge funds that spread capital across dozens of teams and hundreds of positions, Hohn runs a concentrated book of fewer than 20 names. His Q2 2025 13-F filing revealed just 10 positions:
| Company | Weight | Value (Q2 2025) | Change |
|---|---|---|---|
| Ge Aerospace+1.62% | 24.1% | $12.2B | -0.1% |
| Microsoft+0.70% | 17.2% | $8.7B | +1.5% |
| Visa+0.15% | 13.4% | $6.8B | +14.6% |
| Moody's-0.13% | 13.1% | $6.6B | +0.6% |
| S&P Global+0.17% | 11.5% | $5.8B | +7.1% |
| Canadian Pacific Kansas City+0.18% | 8.3% | $4.2B | -3.8% |
| Canadian National Railway+0.89% | 4.7% | $2.4B | -14.5% |
| Alphabet-0.85% | 5.6% | $2.9B | -6.4% |
Source: TCI Fund Management 13-F filing, Q2 2025
The portfolio reflects Hohn's affinity for monopolistic businesses with pricing power—financial data providers (Moody's-0.13%, S&P Global+0.17%), payment networks (Visa+0.15%), and transportation infrastructure (Canadian Pacific, Canadian National).
Industry Context: A Record Year for Hedge Funds
TCI's windfall came during what Edmond de Rothschild called the best year in hedge fund history. The industry collectively generated $543 billion in profits, also an all-time record.
Other top performers in 2025 included:
| Fund | 2025 Return | 2025 Profit |
|---|---|---|
| Bridgewater Pure Alpha | 34% | $15.6B* |
| D.E. Shaw Oculus | 28.2% | — |
| AQR Apex | 19.6% | — |
| D.E. Shaw Composite | 18.5% | — |
| ExodusPoint | 18.0% | — |
| Point72 | 17.5% | — |
| Balyasny | 16.7% | — |
| Millennium | 10.5% | — |
| Citadel Wellington | 10.2% | — |
Bridgewater's Pure Alpha posted its best year in the firm's 50-year history.
The top 20 hedge funds returned 15.7% on average, significantly outperforming the broader hedge fund industry's 12.6% return. Geopolitical uncertainty from trade wars and real conflicts created fertile ground for stock pickers who could navigate volatility.
Ask Fintool AI AgentHohn's Edge: Activist Patience
Chris Hohn, 59, founded TCI in 2003 after departing Perry Capital. His approach combines activist engagement—pressuring companies for better governance, capital allocation, and strategic focus—with multi-year holding periods that allow compounding to work.
The fund manages approximately $80 billion in assets, with 27% returns in 2025 according to the Financial Times. That performance extended TCI's already impressive lead over the S&P 500, which gained 16.4% for the year.
Hohn is also known for his philanthropy. TCI's charitable donations climbed to nearly $800 million in the year ending March 2025, funded through the Children's Investment Fund Foundation (CIFF) that he co-founded. TCI's management structure routes significant profits to charitable causes.
What to Watch
TCI's concentrated aerospace bet raises questions about what's next. With defense stocks trading at elevated multiples and commercial aviation recovered, the easy gains may be behind. Key catalysts to monitor:
- GE Aerospace's capital allocation: The company recently completed its spinoff and has significant capital deployment decisions ahead
- European defense budgets: NATO spending commitments drive Safran and Airbus orders
- Rate cuts and duration: TCI's financial infrastructure holdings (Microsoft+0.70%, Visa+0.15%, S&P Global+0.17%) benefit from multiple expansion in falling rate environments
- 13-F filings: TCI's Q4 2025 filing (due ~February 15) will reveal whether Hohn is rotating out of aerospace winners
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