"Tracking Al Gore's Generation Investment Management Portfolio – Q1 2021 Update"
"Generation Investment Management’s 13F portfolio value increased from $22.41B to $23.86B this quarter.They added Amazon.com and increased Alibaba Group Holdings & Steris plc while reducing Dentsply Sirona & Illumina.The top three positions are Baxter International, Equifax, and Cisco Systems, 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 5/17/2021. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q4 2020.This quarter, Al Gore’s 13F portfolio value increased ~6% from $22.41B to $23.86B. The number of positions decreased from 41 to 40. The top five stakes are Baxter International, Equifax, Cisco Systems, Charles Schwab, and Alphabet. They account for around ~27% 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:Amazon.com (AMZN): AMZN is a fairly large 3.92% of the portfolio position purchased this quarter at prices between ~$2952 and ~$3380 and the stock currently trades just above that range at ~$3383.Guidewire Software (GWRE) and Aon plc (AON): These are very small (less than ~0.65% of the portfolio each) new stakes established during the quarter.Stake Disposals:Airbnb (ABNB), Aptiv plc (APTV), Cerner Corporation (CERN), and Workday Inc. (WDAY): These small (less than ~1.10% of the portfolio each) stakes were disposed this quarter.Stake Increases:Baxter International (BAX): BAX is now the largest 13F position at 7.42% 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. This quarter saw another ~20% stake increase at prices between ~$76 and ~$86. The stock currently trades at ~$82.Equifax Inc. (EFX): The large (top three) 5.22% EFX stake was purchased in Q1 2019 at prices between $91 and $115. The stock has doubled and currently trades at ~$231. 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 this quarter at prices between ~$162 and ~$193.Alibaba Group Holdings (BABA): BABA is a 2.85% of the portfolio position purchased last quarter at prices between ~$222 and ~$317. The stake was almost doubled this quarter at prices between ~$223 and ~$271. The stock currently trades at ~$210Steris plc (STE): STE is 2.52% of the portfolio stake primarily built this quarter at prices between ~$171 and ~$203. The stock currently trades at ~$198.Nutanix (NTNX): NTNX is a ~2% position established in Q2 2019 at prices between $24.50 and $43.50 and it is now at $37.60. Generation IM has a ~10% ownership stake in Nutanix. Last few quarters have seen only minor adjustments.Huazhu Group (HTHT) and Microchip Technology (MCHP): These two minutely small (less than ~0.25% of the portfolio each) stakes saw marginal increases during the quarter.Stake Decreases:Cisco Systems (CSCO): CSCO is a large (top three) ~5% of the portfolio position built over the last two quarters at prices between ~$35.50 and ~$48. The stock currently trades at $53.79. This quarter saw marginal trimming.Charles Schwab (SCHW): SCHW is a large top-five stake at 6.62% 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. This quarter saw a ~37% selling at prices between ~$51.50 and ~$68. The stock is now at $72.54.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.Alphabet Inc. (GOOG): GOOG stake is currently at 4.34% 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 ~$2521. There was marginal trimming this quarter.Cognizant Technology (CTSH): The ~4% of the portfolio CTSH stake 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. Last two quarters saw a ~20% selling at prices between ~$69 and ~$82. The stock currently trades at $70.35.Becton Dickinson (BDX): The 3.91% BDX position was built last year at prices between $201 and $284. The stock currently trades near the middle of that range at ~$241. This quarter saw marginal trimming.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 $78.40 and the stake at 3.87% of the portfolio. Generation IM has a 9.4% ownership stake in Henry Schein. Last four 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.Dentsply Sirona (XRAY): XRAY is a 3.81% 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. This quarter saw a ~25% reduction at prices between ~$52 and ~$64. The stock is now at $65.89.Note: Generation IM has a ~5% ownership stake in Dentsply Sirona.Gartner Inc. (IT): The 3.76% of the portfolio IT stake was built last year at prices between ~$83 and ~$164. It is now at ~$235. Last two quarters have seen a ~15% trimming.Note: Generation IM owns ~5% of the business.Analog Devices (ADI): ADI position is now at 3.57% 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 only minor adjustments. The stock currently trades at ~$168.Jones Lang LaSalle Inc. (JLL): JLL is a 3.53% 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 ~$206.Note: Generation IM has a ~9% ownership stake in Jones Lang LaSalle.Cooper Companies (COO): The bulk of the 3.48% 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 ~$377. Last few quarters have seen only minor adjustments.TE Connectivity (TEL): TEL is a 3.32% 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 two quarters saw a ~30% selling at prices between ~$96 and ~$135. The stock currently trades at ~$137.CBRE Group (CBRE): CBRE is a 3.27% of the portfolio position built during Q2 & Q3 2020 at prices between ~$35 and ~$56. The stock is now at ~$89. Last two quarters have seen only minor adjustments.Palo Alto Networks (PANW) and Trimble Inc. (TRMB): These two positions established in Q1 2020 were reduced over the last three quarters. PANW is a ~3% 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 ~$361. Last three quarters have seen a ~40% selling at prices between ~$221 and ~$397. TRMB is a 1.81% of the portfolio position purchased at prices between ~$21 and ~$46 and it currently goes for ~$78. Last three quarters have seen a two-thirds selling at prices between ~$41.50 and ~$84.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 two years have seen only minor adjustments. The stock currently goes for $59.43.Note: Generation IM has a 7.5% ownership stake in Sensata Technologies NV.Illumina Inc. (ILMN): ILMN is a 2.17% 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. Last quarter saw a two-thirds increase at prices between ~$293 and ~$371 while this quarter there was a ~30% reduction at prices between ~$361 and ~$505. The stock is now at ~$452.Thermo Fisher Scientific (TMO): TMO is a ~2% 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 had seen another ~60% selling at prices between ~$255 and ~$528. The stock currently goes for ~$470. There was marginal trimming this quarter.Texas Instruments (TXN): The vast majority of the 1.79% TXN stake was purchased in Q4 2018 at prices between $88 and $109. The stock currently trades at ~$189. Last two years have seen a ~60% selling at prices between ~$98 and ~$192.Acuity Brands (AYI), Applied Materials (AMAT), Asana Inc. (ASAN), Mercadolibre (MELI), Microsoft Corporation (MSFT), Penumbra Inc. (PEN), Salesforce.com (CRM), Taiwan Semi (TSM), Trane Technologies plc (TT), Twilio Inc. (TWLO), and Waters Corp. (WAT): These small positions (less than ~2% of the portfolio each) were reduced this quarter.Note 1: Generation IM controls ~8% of Acuity Brands.Note 2: Penumbra stock dropped in February 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 Q1 2021:Source: John Vincent. Data constructed from Generation IM’s 13F filings for Q4 2020 and Q1 2021.Regulatory filings thru 3/7/2021: 13G – 2/26 – EFX – 6.2M shares – 5.1% of business. 13G/As – 2/16 – XRAY – 18.77M shares – 7.3% of business, ST – 11.71M shares – 7.5% of business, JLL – 4.88M shares – 9.5% of business, HSIC – 13.38M shares – 9.4% of business, Acuity Brands – ACY – 3.34M shares – 9.1% of business, ASAN – 6.25M shares – 7.8% of business, NTNX – 17.23M shares – 9.1% of business, IT – 5.42M shares – 6.1% of business, COO – 1.53M shares – 3.1% of business."