"Tracking Al Gore's Generation Investment Management Portfolio – Q4 2021 Update"
"Generation Investment Management’s 13F portfolio value increased from $24.05B to $24.33B this quarter.They increased Becton Dickinson, Clarivate, and Dentsply Sirona while reducing Alphabet, Thermo Fisher Scientific, Gartner, and Equifax.The top three positions are Baxter International, Amazon.com, and Jones Lang LaSalle, and they add up to ~18% of the portfolio.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  filed on 2/11/2022. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q3 2021.This quarter, Al Gore’s 13F portfolio value increased marginally from $24.05B to $24.33B. The number of positions increased from 45 to 47. The top five stakes are Baxter International, Amazon.com, Jones Lang LaSalle, Becton Dickinson, and Alphabet. They account for around ~29% of the total 13F portfolio value. Generation Investment Management’s  and Al Gore’s  are good precursors for anyone interested in investing based on sustainability analysis.New Stakes:Visa Inc. (V), Carlisle Companies (CSL), Ptc Inc. (PTC), and Stone Co (STNE): These are the new positions this quarter. The 2.86% V stake was purchased at prices between ~$190 and ~$234 and the stock currently trades at $223. CSL is a 1.66% of the portfolio position established at prices between ~$201 and ~$248 and it is now at ~$234. The 0.42% PTC position was purchased at prices between ~$106 and ~$130 and it now goes for ~$109. STNE is a 0.34% stake established at prices between ~$15 and ~$39.50 and it currently trades well below that range at $10.71.Stake Disposals:Synopsis Inc. (SNPS): The 1.21% SNPS stake was established in Q2 2021 at prices between ~$229 and ~$277. There was a ~22% selling last quarter at prices between ~$275 and ~$338. The disposal this quarter was at prices between ~$289 and ~$376. The stock currently trades at ~$288.Acuity Brands (AYI): The small 0.75% stake in AYI was disposed during the quarter.Stake Increases:Baxter International (BAX): BAX is now the largest 13F position at 7.47% 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. The stock currently trades at $82.35. Last three quarters have seen only minor adjustments.Jones Lang LaSalle Inc. (JLL): JLL is a 5.26% 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 ~$243.Note: Generation IM has a ~9% ownership stake in Jones Lang LaSalle.Becton Dickinson (BDX): The 3.88% BDX position was built in 2020 at prices between $201 and $284. There was a ~30% stake increase this quarter at prices between ~$236 and ~$257. The stock currently trades at ~$264.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 $83.47 and the stake at 4.29% of the portfolio. Last seven quarters 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 ~9.7% ownership stake in Henry Schein.Clarivate plc (CLVT): CLVT is a 3.20% of the portfolio stake purchased last quarter at prices between ~$21.50 and ~$27.15. There was a one-third stake increase this quarter at prices between ~$20.50 and ~$25.25. The stock currently trades well below those ranges at ~$16.Note: Generation IM has a ~5% ownership stake in Clarivate plc.Cooper Companies (COO): The bulk of the 2.81% 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. The stock currently trades at ~$389. This quarter saw a minor ~2% increase.Sensata Technologies (ST): The bulk of the 2.81% 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. Last few years have seen only minor adjustments. The stock currently goes for $57.15.Note: Generation IM has a ~7% ownership stake in Sensata Technologies NV.Intel Corporation (INTC): INTC is a 2.76% 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 ~$45. There was a minor ~5% stake increase this quarter.Dentsply Sirona (XRAY): XRAY is a 2.64% 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 this quarter there was a similar increase at prices between ~$48 and ~$59. The stock is now at ~$55.Note: Generation IM has a ~5.3% ownership stake in Dentsply Sirona.Nutanix (NTNX): NTNX is a 2.59% position established in Q2 2019 at prices between $24.50 and $43.50 and it is now at $25.10. 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.Illumina Inc. (ILMN): ILMN is a 1.49% 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 last three quarters there was a ~52% reduction at prices between ~$361 and ~$525. The stock is now at ~$312. There was a minor ~2% increase this quarter.Huazhu Group (HTHT) and Mercadolibre (MELI): These two positions saw large increases last quarter. The ~1% HTHT stake was primarily built last quarter at prices between ~$41 and ~$54. The stock currently trades at $43.76. The 1.17% MELI stake saw a ~170% stake increase over the last two quarters at prices between ~$1297 and ~$1954. The stock currently trades below that range at ~$937. Both stakes saw marginal increases this quarter.Cognizant Technology (CTSH), Guidewire Software (GWRE), Microchip Technology (MCHP), Microsoft Corporation (MSFT), Proterra Inc. (PTRA), Salesforce.com (CRM), SPDR S&P 500 ETF (SPY), Taiwan Semi (TSM), Toast Inc. (TOST), Trane Technologies plc (TT), Trimble Inc. (TRMB), and Twilio Inc. (TWLO): These small (less than ~1% of the portfolio each) stakes were increased this quarter.Note: Generation IM’s original investments in Proterra & Toast go back to funding rounds in 2017. They have a 9.45% ownership (7.35M shares) stake in Toast Inc. Around 4M shares are not in the 13F as they are Class B shares with conversion rights.Stake Decreases:Amazon.com (AMZN): AMZN is a large (top three) 5.65% of the portfolio position purchased during H1 2021 at prices between ~$3152 and ~$3505 and the stock currently trades at ~$3052. Last two quarters have seen minor trimming.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. This quarter saw another ~20% selling at prices between ~$2665 and ~$3014. The stock currently trades at ~$2609.Charles Schwab (SCHW): SCHW is a fairly large stake at 4.12% 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 $85.61. There was minor trimming in the last two 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.Thermo Fisher Scientific (TMO): TMO is a 3.30% 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 ~30% reduction this quarter at prices between ~$569 and ~$667. The stock currently goes for ~$537.Gartner Inc. (IT): The ~3% of the portfolio IT stake was built in 2020 at prices between ~$83 and ~$164. Last five quarters have seen a ~60% selling at prices between ~$120 and ~$340. The stock is now at ~$288.Applied Materials (AMAT): The 2.76% AMAT stake was established in Q2 2019 at prices between ~$39 and ~$45. The stock currently trades at ~$133. Last several quarters have seen only minor adjustments.CBRE Group (CBRE): CBRE is a 2.76% of the portfolio position built during Q2 & Q3 2020 at prices between ~$35 and ~$56. The stock is now at ~$100. There was a ~30% selling in Q2 2021 at prices between ~$78 and ~$90. Last two quarters have seen minor trimming.Equifax Inc. (EFX): The 2.65% EFX stake was purchased in Q1 2019 at prices between $91 and $115. The stock has doubled and currently trades at ~$213. Q2 2019 saw a ~27% stake increase at prices between $116 and $136 while next quarter there was similar selling at prices between $135 and $147. Q4 2020 saw a whopping ~175% stake increase at prices between ~$137 and ~$195. That was followed with another ~20% stake increase next quarter at prices between ~$162 and ~$193. Last three quarters saw the position sold down by ~70% at prices between ~$181 and ~$297.Steris plc (STE): STE is a 2.48% of the portfolio stake primarily built in Q1 2021 at prices between ~$171 and ~$203. There was a ~20% selling this quarter at prices between ~$204 and ~$245. The stock currently trades at ~$226.TE Connectivity (TEL): TEL is a 2.40% 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. That was followed with a ~20% reduction this quarter at prices between ~$137 and ~$166. The stock currently trades at ~$144.Cisco Systems (CSCO): CSCO is a 2.29% of the portfolio position built in H2 2020 at prices between ~$35.50 and ~$48. There was a ~35% selling last quarter at prices between ~$53 and ~$60. That was followed with a ~42% selling this quarter at prices between ~$53 and ~$64. The stock currently trades at $57.21.Palo Alto Networks (PANW): PANW is a 2.24% of the portfolio stake purchased in Q1 2020 at prices between ~$133 and ~$250 and increased by one-third next quarter at prices between ~$163 and ~$240. The stock currently trades at ~$482. Last six quarters have seen a ~70% selling at prices between ~$221 and ~$562.Analog Devices (ADI): ADI position is now at 2.24% 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 have seen the position reduced by ~47% at prices between ~$146 and ~$189. The stock currently trades at ~$160.Alibaba Group Holdings (BABA): BABA is a 1.86% 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 last quarter at prices between ~$140 and ~$222. This quarter saw the pattern reverse - ~20% reduction at prices between ~$112 and ~$178. The stock currently trades at ~$119.Asana Inc. (ASAN) and Texas Instruments (TXN): These very small (less than ~0.5% of the portfolio each) stakes were reduced this quarter.Kept Steady:Remitly Global (RELY): RELY had an IPO last September. Shares started trading at ~$38 and currently goes for ~$10.45. Generation IM’s stake is at 0.94% of the portfolio.Note: Generation IM has a 6.75% ownership stake in the business.Sophia Genetics (SOPH): Sophia Genetics had an IPO in July. Shares started trading at ~$16.75 and currently goes for $11.65. Generation IM’s 0.39% of the portfolio stake goes back to a funding round in 2019.Note: Generation IM has a 10.6% ownership stake in the business.Below is a spreadsheet that highlights the changes to Al Gore's Generation Investment Management 13F stock portfolio as of Q4 2021:Source: John Vincent. Data constructed from Generation IM’s 13F filings for Q3 2021 and Q4 2021.Regulatory filings from 9/23/2021 to 11/22/2021: 13G – 10/4 – TOST – 2.52M shares – 9.45% of business."