(HedgeCo.Net) The London-based hedge fund The Children’s Investment Fund (TCI), run by veteran investor Sir Christopher Hohn, has delivered a stellar ~21 % return in 2025 so far, significantly outpacing broad equity markets. Financial Times
Key to TCI’s performance has been concentrated large equity stakes and an activist approach. According to disclosures, TCI increased its position in GE Aerospace from US $7.7 billion at end-2024 to US $9.5 billion by March 2025; GE Aerospace alone rose about 47 % in the period. Financial Times The fund also held significant investments in Microsoft Corporation and Visa Inc., which added further upside (17 % and 12 % respectively).
TCI’s success underscores how an activist-oriented equity hedge fund can outperform even in turbulent macro markets by picking strong companies and influencing governance. The strategy, however, comes with risk: concentrated positions may entail higher volatility and exposure to company-specific events.
What to watch going forward: whether TCI can maintain this momentum, especially as markets digest macro-headwinds such as inflation and central bank policy. The fund’s large bet on GE Aerospace is bold, but aerospace and defence remain cyclical and subject to geopolitical and supply chain risks. For investors and industry watchers, TCI’s performance acts as a reminder that even in 2025’s mixed environment, focused equity hedge funds can still shine.