"Tracking Al Gore's Generation Investment Management Portfolio – Q4 2020 Update"
"Generation Investment Management’s 13F portfolio value increased from $18.84B to $22.41B this quarter.They increased Baxter International and Equifax while reducing Aptiv plc.The top three positions are Charles Schwab, Baxter International, and Cognizant Technology, 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 2/16/2021. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q3 2020.This quarter, Al Gore’s 13F portfolio value increased ~19% from $18.84B to $22.41B. The number of positions decreased from 42 to 41. The top five stakes are Charles Schwab, Baxter International, Cognizant Technology, Equifax, and Cisco Systems. 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:Alibaba Group Holdings (BABA) and Airbnb (ABNB): These are the two new stakes this quarter. BABA is a 1.60% of the portfolio position purchased this quarter at prices between ~$222 and ~$317 and the stock currently trades at ~$236. ABNB had an IPO in December. Shares started trading at ~$157 and currently goes for ~$192. Generation IM’s position is minutely small at 0.11% of the portfolio.Stake Disposals:A O Smith (AOS), Stericycle Inc. (SRCL), and Varian Medical Systems (VAR): These very small (less than ~1.2% of the portfolio each) stakes were disposed this quarter.Stake Increases:Baxter International (BAX): BAX is a large (top three) 6.24% of the portfolio stake established in Q4 2019 at prices between $76.50 and $88.50 and increased by ~50% next quarter at prices between ~$72 and ~$93. The stock currently trades at ~$80. Last three quarters have seen only minor adjustments.Equifax Inc. (EFX): The large (top five) 4.87% EFX stake was purchased in Q1 2019 at prices between $91 and $115 and the stock currently trades well above that range at ~$173. 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. H1 2020 had seen another ~20% reduction while last quarter there was a ~8% stake increase. This quarter saw a whopping ~175% stake increase at prices between ~$137 and ~$195.Note: Regulatory filings since the quarter ended show them owning 6.2M shares (5.1% of the business) of Equifax. This is compared to 5.66M shares in the 13F report.Cisco Systems (CSCO): CSCO is a large (top five) 4.66% of the portfolio position built over the last two quarters at prices between ~$35.50 and ~$48. The stock currently trades at $48.80.Becton Dickinson (BDX): The 4.29% BDX position was built last year at prices between $201 and $284. The stock currently trades near the middle of that range at ~$239.Analog Devices (ADI): ADI position is now at 3.86% 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. Q4 2018 saw another ~25% stake increase at prices between $78 and $94. There was a ~50% selling in Q2 2019 at prices between $96 and $117 and that was followed with a similar reduction over the next two quarters at prices between $104 and $125. Last quarter saw a stake doubling at prices between ~$112 and ~$125. The stock currently trades at ~$150. This quarter saw minor trimming.Illumina Inc. (ILMN): ILMN is a 3.24% 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. This quarter saw a two-thirds increase at prices between ~$293 and ~$371. The stock is now at ~$409.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 $78.35. There was a marginal increase this quarter.Microchip Technology (MCHP) and Taiwan Semi (TSM): These minutely small (less than ~0.25% of the portfolio each) stakes were increased this quarter.Stake Decreases:Charles Schwab (SCHW): SCHW is currently the largest position at 6.62% of the portfolio. The stake is from Q4 2016 at prices between $31 and $40.50. Q2 2017 saw a two-thirds increase at prices between $37.50 and $43 and that was followed with a ~40% increase in the following quarter at around the same price range. The six quarters through Q1 2020 had also seen a ~180% stake increase at prices between ~$30 and ~$50. There was a ~18% reduction in Q2 2020 at prices between ~$32 and ~$43 while last quarter there was a ~12% stake increase. The stock is now at $66.07. This quarter saw a ~6% trimming.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.Cognizant Technology (CTSH): The ~5% of the portfolio CTSH stake is now the largest 13F position. It was purchased in Q2 2019 at prices between $57 and $75. There was a ~42% stake increase over the next two quarters at prices between $58.75 and $66.50. The stock currently trades at $76.40. There was a ~14% trimming this quarter.Dentsply Sirona (XRAY): XRAY is a large 4.39% 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 had also seen minor increases. The stock is now at $63.05. There was a ~3% trimming this quarter.Note: Generation IM has a 7.3% ownership stake in Dentsply Sirona.Palo Alto Networks (PANW) and Trimble Inc. (TRMB): These two positions established in Q1 2020 were reduced over the last two quarters. PANW is a 4.30% 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 ~$318. Last two quarters have seen a ~20% trimming. TRMB is a 2.21% of the portfolio position purchased at prices between ~$21 and ~$46 and it currently goes for $74.62. Last two quarters have seen a ~40% selling at prices between ~$41.50 and ~$67.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 $67.69 and the stake at ~4% of the portfolio. Generation IM has a 9.4% ownership stake in Henry Schein. Last three 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.Alphabet Inc. (GOOG): GOOG stake is currently at 3.92% 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. Last five quarters saw the stake reduced by ~60% at prices between ~$1055 and ~$1825. The stock currently trades at ~$2036.Gartner Inc. (IT): The 3.87% of the portfolio IT stake was built last year at prices between ~$83 and ~$164. It is now at ~$183. This quarter saw a ~4% trimming.Note: Generation IM owns ~6% of the business.Cooper Companies (COO): The bulk of the 3.64% 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. The stock currently trades well above those ranges at ~$379. The first three quarters of 2019 had seen a ~53% selling at prices between $246 and $342 while the last three quarters saw a similar increase at prices between ~$243 and ~$360. This quarter saw marginal trimming.Note: regulatory filings since the quarter ended show them owning 1.53M shares (3.1% of the business) of Cooper Companies. This is compared to 2.24M shares in the 13F report.TE Connectivity (TEL): TEL is a 3.58% 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. Q2 2020 saw a ~11% increase and that was followed with a marginal further increase last quarter. This quarter saw a ~20% selling at prices between ~$96 and ~$121. The stock currently trades at ~$132.Jones Lang LaSalle Inc. (JLL): JLL is a 3.23% 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 ~$178.Note: Generation IM has a 9.5% ownership stake in Jones Lang LaSalle.Sensata Technologies (ST): The bulk of the 2.78% 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 two years have seen only minor adjustments. The stock currently goes for $63.36.Note: Generation IM has a 7.5% ownership stake in Sensata Technologies NV.Nutanix (NTNX): NTNX is a 2.45% position established in Q2 2019 at prices between $24.50 and $43.50 and it is now near the low end of that range at $25.65. There was a ~12% stake increase last quarter at prices between ~$20 and ~$29. Generation IM has a ~9% ownership stake in Nutanix. This quarter saw minor trimming.Texas Instruments (TXN): The vast majority of the 2.30% TXN stake was purchased in Q4 2018 at prices between $88 and $109. The stock currently trades at ~$174. The four quarters thru Q2 2020 had seen a combined ~20% selling and that was followed with a similar reduction last quarter at prices between ~$125 and ~$148. This quarter also saw a ~15% trimming.Thermo Fisher Scientific (TMO): TMO is a 2.12% 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 four quarters have seen another ~60% selling at prices between ~$255 and ~$528. The stock currently goes for ~$446.Acuity Brands (AYI), Applied Materials (AMAT), Aptiv plc (APTV), Asana Inc. (ASAN), Cerner Corporation (CERN), Huazhu Group (HTHT), Mercadolibre (MELI), Microsoft Corporation (MSFT), Penumbra Inc. (PEN), Salesforce.com (CRM), Steris plc (STE), Trane Technologies plc (TT), Twilio Inc. (TWLO), Waters Corp. (WAT), and Workday Inc. (WDAY): These small positions (less than ~1.5% of the portfolio each) were reduced this quarter.Note 1: Generation IM controls ~9% of Acuity Brands.Note 2: Penumbra stock dropped last month following fraud  by Quintessential Capital Management.Kept Steady:None.Below is a spreadsheet that highlights the changes to Al Gore's Generation Investment Management 13F stock portfolio as of Q4 2020:Regulatory filings thru 8/28/2020: Form 4 – 9/30 – ASAN – 3M shares disposed at ~27.5, 9/23 – 9.75M shares Class B to E preferred stock converted, 9/21 – 9.75M in convertible preferred stock.."