Children's Investment Fund Management TCI

Children's Investment Fund

Children's Investment Fund Profile

The following piece on Children's Investment Fund is being published as part of our Hedge Fund Tracker Tool, our daily effort to track hedge funds in the industry.

Resource #1: (8.02.09) It was a crisp autumn day in November 2005 when hedge fund manager John Ho entered the half- century-old Electric Power Development Co.’s headquarters in Tokyo, betting that Japan’s corporate attitudes were ripe for change.

Ho, then director of Asia-Pacific investments at the Children’s Investment Fund Management UK LLP, also known as TCI, was ushered into a conference room with a worn carpet to meet with Masayoshi Kitamura, then executive vice president of the utility. The visitor, who was offered a bottle of water, told Kitamura he wanted to learn more about the company’s plans for growth.

His London-based fund was on the hunt for global infrastructure assets, and Japan’s No. 1 electricity wholesaler, known to customers as J-Power, looked like an attractive investment. Ho had discussed with his boss, TCI founder Christopher Cooper-Hohn, that J-Power had the cash flow to double its dividends. TCI, an $8 billion fund that gives a portion of its fees and assets to charity, was looking to invest in airports, shipping facilities and utility companies throughout Asia. Source

Resource #2: (4.22.09) John Ho, senior manager at the Children's Investment Fund (TCI), is leaving his job for personal reasons, according to various media reports.

Chris Hohn, founding partner of TCI, disclosed Ho's resignation in a letter to investors. Ho is believed to be planning to launch a fund that will pursue his own investment strategy rather than that of TCI.

Ho joined London-based TCI in 2004 and opened the Hong Kong office after working for Chicago- based Citadel Investments Group. source

Resource #3 (4.20.09) The Children's Investment Fund, the activist hedge fund, has suffered another setback with the resignation of John Ho, director in Asia.

In a letter to investors sent this week, Chris Hohn, TCI founding partner, revealed that Mr Ho, 32, would leave the fund for personal reasons. source

Resource #4: (3.13.09) The Children's Investment Fund (TCI), London's most aggressive hedge fund activist, has agreed to pay $10m (£7.2m) to a US railway and one of its shareholders after being accused of breaking rules on short-term share deals for holders of big stakes, writes James Mackintosh.

A settlement between TCI, fellow hedge fund 3G Capital Partners and Deborah Donoghue, a shareholder in CSX, was approved by a New York judge last week. 3G will pay $1m.

Resource #5: (3.11.09) TCI has sold more 10% of all the stock sold by foreign investors in India this year, valued at US$222.2 million.

The Children’s Investment Fund has become the largest seller of Indian stocks among foreign institutional investors, a dubious distinction as the British activist hedge fund cuts its investment in the subcontinent.

TCI has sold more 10% of all the stock sold by foreign investors in India this year, valued at US$222.2 million. That’s about one-third of the US$666.6 million in Indian stocks owned by TCI last year. source

Resource #6 (1.12.08) Patrick Degorce, a founder and top partner at activist hedge fund shop The Children’s Investment Fund Management, has left the London-based firm.

Degorce has retired from TCI and as of Jan. 1 is no longer a member of the limited liability partnership, according to media reports. source

Resource #7:
Activist hedge fund The Children’s Investment Fund has taken a large stake in Visa and increased its holding in MasterCard, taking its combined exposure to the credit card companies to about a fifth of its fund.

The fund, which is known for public stances it has taken at Deutsche Börse, ABN Amro, CSX and JPower, took an almost 1.5% stake in Visa between July and September and increased its holding in MasterCard to just over 6% in the same period, according to a recently published filing with the US Securities and Exchange Commission.

Its stake in Visa is worth $400m (€315.7m). At MasterCard, where it is the third largest shareholder after the MasterCard Foundation and US equity manager Marsico Capital Management, its stake is worth $1.1bn. TCI’s fund was estimated at $10bn earlier this year, but it registered a loss of 25.8% for the year to the end of September, according to a letter to investors.

Resource #8
: 10.31.08 Activist hedge fund The Children’s Investment Fund is finally throwing in the towel for good in its battle with Japan’s largest electric utility.

Electric Power Development Co., better known as J-Power, said it had agreed to buy back TCI’s 9.9% stake at a 32% premium to the stock’s Friday closing price. Still, the sale—requested by TCI, according to J-Power—represents a ¥12.5 billion (US$127.3 million) loss for the US$10 billion London activist.

The move comes after TCI lost its long-running battle to double its stake in J-Power, after the Japanese government rejected its bid on national security grounds this summer. At the time, while saying it would not sue to overturn the government’s decision, TCI vowed to “continue in its quest to improve corporate governance at J-Power.”

Resource #9: Here is a pretty opinionated video on the Children's Investment Fund actions here in the United States. It discusses protecting national assets and the political vs. economic intentions of sovereign wealth funds. I don't like to talk politics within this hedge fund blog and don't agree with everything said here but thought this was an interesting video as it related to a UK hedge fund - Children's Investment Fund. Here is a direct link to the video:

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