"Tracking Al Gore's Generation Investment Management Portfolio – Q3 2021 Update"
"Generation Investment Management’s 13F portfolio value decreased from $24.11B to $24.05B this quarter.They increased Alibaba Group Holdings, Intel, Mercadolibre, and Huazhu Group while reducing Cisco Systems, Equifax, Texas Instruments and Cognizant.The top three positions are Baxter International, Alphabet, and Amazon.com, 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 11/12/2021. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q2 2021.This quarter, Al Gore’s 13F portfolio value decreased marginally from $24.11B to $24.05B. The number of positions increased from 40 to 45. The top five stakes are Baxter International, Amazon.com, Alphabet, Cisco Systems, and Equifax. They account for around ~28% 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:Clarivate plc (CLVT) and Remitly Global (RELY): CLVT is a 2.27% of the portfolio stake purchased this quarter at prices between ~$21.50 and ~$27.15 and the stock currently trades at $23.29. RELY had an IPO in September. Shares started trading at ~$38 and currently goes for ~$24.60. Generation IM’s stake is at 1.69% of the portfolio.Sophia Genetics (SOPH), Toast Inc. (TOST), SPDR S&P 500 ETF (SPY), and Proterra Inc. (PTRA): These are very small (less than ~0.5% of the portfolio each) stakes established this quarter. Sophia Genetics had an IPO in July. Shares started trading at ~$16.75 and currently goes for $14.33. Generation IM’s stake goes back to a funding round in 2019. Toast had an IPO in September. Shares started trading at ~$56 and is currently at ~$41.50. Generation IM’s stake goes back to a funding round in 2017. They control ~9.5% of the business.Note: Generation IM’s investment in Proterra goes back to a funding round in 2017.Stake Disposals:Penumbra Inc. (PEN): The very small 0.52% stake in Penumbra was disposed during the quarter.Stake Increases:Nutanix (NTNX): NTNX is a ~3% position established in Q2 2019 at prices between $24.50 and $43.50 and it is now at $32.58. Generation IM has a ~10% ownership stake in Nutanix. Last few quarters have seen only minor adjustments.Alibaba Group Holdings (BABA): BABA is a ~3% of the portfolio position purchased in Q4 2020 at prices between ~$222 and ~$317. The stake was increased by ~150% over the last two quarters at prices between ~$206 and ~$271. That was followed with a ~25% stake increase this quarter at prices between ~$140 and ~$222. The stock currently trades below those ranges at ~$134.Intel Corporation (INTC): INTC is a 2.74% 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 $49.10.Huazhu Group (HTHT) and Mercadolibre (MELI): These two positions saw large increases this quarter. The 1.30% HTHT stake was primarily built this quarter at prices between ~$41 and ~$54. The stock currently trades at ~$47. The 1.44% 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 ~$1285.Microchip Technology (MCHP): The minutely small 0.26% MCHP stake saw a minor increase this quarter.Stake Decreases:Baxter International (BAX): BAX is now the largest 13F position at ~7% 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 $78.41. Last two quarters have seen only minor adjustments.Alphabet Inc. (GOOG): GOOG stake is currently at 5.85% 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. The stock currently trades at ~$2935. Last three quarters have seen only minor adjustments.Amazon.com (AMZN): AMZN is a large (top three) 5.64% of the portfolio position purchased over the last two quarters at prices between ~$3152 and ~$3505 and the stock currently trades at ~$3580. There was minor trimming this quarter.Jones Lang LaSalle Inc. (JLL): JLL is a 4.79% 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 ~$261.Note: Generation IM has a ~9% ownership stake in Jones Lang LaSalle.Cisco Systems (CSCO): CSCO is a large (top five) 4.33% of the portfolio position built in H2 2020 at prices between ~$35.50 and ~$48. There was a ~35% selling this quarter at prices between ~$53 and ~$60. The stock currently trades at $55.30.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 $76.90 and the stake at 4.18% of the portfolio. Generation IM has a ~9.5% ownership stake in Henry Schein. Last six 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.Thermo Fisher Scientific (TMO): TMO is a ~4% 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. Last year had seen another ~60% selling at prices between ~$255 and ~$528. The stake was rebuilt last quarter at prices between ~$441 and ~$509. The stock currently goes for ~$633. There was minor trimming this quarter.Charles Schwab (SCHW): SCHW is a fairly large stake at 3.91% 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 last quarter at prices between ~$63.50 and ~$76. The stock is now at $82.94. There was minor trimming this quarter.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.Becton Dickinson (BDX): The 3.88% BDX position was built last year at prices between $201 and $284. The stock currently trades at ~$247. Last three quarters have seen only minor adjustments.Gartner Inc. (IT): The 3.56% of the portfolio IT stake was built last year at prices between ~$83 and ~$164. Last four quarters have seen a ~50% selling at prices between ~$120 and ~$323. The stock is now at ~$324.Palo Alto Networks (PANW) and Trimble Inc. (TRMB): These two positions established in Q1 2020 were reduced over the last five quarters. PANW is a 3.22% of the portfolio stake purchased at prices between ~$133 and ~$250 and increased by one-third next quarter at prices between ~$163 and ~$240. The stock currently trades at ~$533. Last five quarters have seen a ~50% selling at prices between ~$221 and ~$491. TRMB is a 1.13% of the portfolio position purchased at prices between ~$21 and ~$46. Last five quarters have seen a ~70% selling at prices between ~$42.50 and ~$96. TRMB currently goes for $85.83.Equifax Inc. (EFX): The ~3% EFX stake was purchased in Q1 2019 at prices between $91 and $115. The stock has doubled and currently trades at ~$283. 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 two quarters saw the position sold down by ~60% at prices between ~$181 and ~$278.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 ~$104. There was a ~30% selling last quarter at prices between ~$78 and ~$90. This quarter also saw minor trimming.Cooper Companies (COO): The bulk of the 2.75% 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 last quarter at prices between ~$372 and ~$412. The stock currently trades at ~$398. This quarter saw minor trimming.Analog Devices (ADI): ADI position is now at 2.67% 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 two quarters have seen the position reduced by ~30% at prices between ~$146 and ~$179. The stock currently trades at ~$183.Steris plc (STE): STE is 2.65% of the portfolio stake primarily built in Q1 2021 at prices between ~$171 and ~$203. The stock currently trades at ~$229. Last two quarters have seen only minor adjustments.TE Connectivity (TEL): TEL is a 2.61% 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. Last three quarters saw a ~40% selling at prices between ~$96 and ~$139. The stock currently trades at ~$161. This quarter saw minor trimming.Sensata Technologies (ST): The bulk of the 2.47% 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 ~$61.Note: Generation IM has a 7.5% ownership stake in Sensata Technologies NV.Applied Materials (AMAT): The 2.34% AMAT stake was established in Q2 2019 at prices between ~$39 and ~$45. The stock currently trades at ~$149. Last several quarters have seen only minor adjustments.Dentsply Sirona (XRAY): XRAY is a 1.65% 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. Last two quarters saw a ~63% reduction at prices between ~$52 and ~$69. The stock is now at ~$52. This quarter also saw minor trimming.Illumina Inc. (ILMN): ILMN is a 1.57% 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 ~$366.Synopsis Inc. (SNPS): The 1.21% SNPS stake was established last quarter at prices between ~$229 and ~$277. There was a ~22% selling this quarter at prices between ~$275 and ~$338. The stock currently trades at ~$345.Acuity Brands (AYI), Asana Inc. (ASAN), Cognizant Technology (CTSH), Guidewire Software (GWRE), Microsoft Corporation (MSFT), Salesforce.com (CRM), Texas Instruments (TXN), Trane Technologies plc (TT), and Twilio Inc. (TWLO): These small (less than ~1.25% of the portfolio each) stakes were reduced this quarter.Kept Steady:Taiwan Semi (TSM): The minutely small 0.05% of the portfolio stake in TSM was kept steady this quarter.Below is a spreadsheet that highlights the changes to Al Gore's Generation Investment Management 13F stock portfolio as of Q3 2021:Source: John Vincent. Data constructed from Generation IM’s 13F filings for Q2 2021 and Q3 2021.6/15/2021: Proterra investment made in 2017 ~$55M raided. Details:Regulatory filings from 6/15/2021 thru 9/23/2021: None."