Chris Hohn explains his investment strategy

Chris Hohn, founder of TCI Fund Management, outlines a multi-faceted investment strategy for generating alpha centered on long-term business sustainability and concentrated positions exceeding 10% of net asset value. This approach leverages a "time horizon arbitrage" similar to Warren Buffett’s philosophy, focusing on high barriers to entry and deep sector expertise in infrastructure and consumer goods. A critical differentiator is Hohn’s willingness to engage in shareholder activism, a space he deems inefficient because institutional investors often avoid companies facing reputational or governance crises regardless of price. He illustrates this with the example of News Corporation during its phone-hacking scandal; while the market discounted $50 billion in value due to fear, Hohn identified a massive valuation gap and an inflection point for governance reform. By treating such opportunities as "damaged goods" in a department store, activists can exploit significant discounts that others are unwilling to touch due to reputational concerns.