"Tracking Al Gore's Generation Investment Management Portfolio – Q3 2020 Update"
"Generation Investment Management’s 13F portfolio value increased from $17.34B to $18.84B this quarter.They increased Becton Dickinson and Analog Devices while decreasing Alphabet, Varian Medical Systems, and Workday during the quarter. They also added Cisco Systems.The top three positions are Cognizant Technology, Charles Schwab, and Baxter International and they add up to ~17% 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 11/16/2020. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q2 2020.This quarter, Al Gore’s 13F portfolio value increased ~9% from $17.34B to $18.84B. The number of positions increased from 39 to 42. The top five stakes are Cognizant Technology, Charles Schwab, Baxter International, Dentsply Sirona, and Becton Dickinson. They account for around ~26% 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:Cisco Systems (CSCO), Asana Inc. (ASAN), and Steris plc (STE): These are the new positions this quarter. CSCO is a large 3.85% of the portfolio position purchased at prices between ~$38 and ~$48 and the stock currently trades at $44.69. Asana had a direct listing on September 30th. Generation IM’s stake goes back to 2018 when they started leading Asana’s funding rounds. The STE stake is a minutely small 0.42% of the portfolio position.Note: Regulatory filings since the quarter ended show them owning 6.75M shares of Asana. This is compared to ~9.75M shares in the 13F report. Around 3M shares were sold at an average price of ~$27.50. The stock is now at ~$32.Stake Disposals:None.Stake Increases:Cognizant Technology (CTSH): The ~6% 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 $79.01. Last three quarters have seen a minor increase.Charles Schwab (SCHW): SCHW is a large (top three) 5.73% portfolio position. 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. The stock is now at $50.55. There was a ~18% reduction last quarter at prices between ~$32 and ~$43 while this quarter there was a ~12% stake increase.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.Baxter International (BAX): BAX is a large (top three) ~5% 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 $79.30. Last quarter saw a ~4% stake increase and that was followed with a ~12% increase this quarter.Dentsply Sirona (XRAY): XRAY is a large (top five) 4.49% 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 have also seen minor increases. The stock is now at $54.50.Note: Generation IM has a ~8% ownership stake in Dentsply Sirona.Becton Dickinson (BDX): The top five 4.41% BDX position was built this year at prices between $201 and $286. The stock currently trades at ~$240.TE Connectivity (TEL): TEL is a 4.35% 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 stock currently trades at ~$119. Last quarter saw a ~11% increase and that was followed with a marginal further increase this quarter.Henry Schein (HSIC): HSIC became the largest position in Q4 2017 as it saw a ~550% 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 $71.15 and the stake at 4.19% of the portfolio. Generation IM has a ~9% ownership stake in Henry Schein. Last two quarters have seen marginal increases.Note: The prices quoted above are adjusted for the spinoff of Covetrus Inc. last January. Also, HSIC split 2-for-1 in September 2017.Cooper Companies (COO): The bulk of the ~4% 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 ~$343. The first three quarters of last year 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.Gartner Inc. (IT): The 3.73% of the portfolio IT stake was built this year at prices between ~$83 and ~$164. It is now at ~$155.Analog Devices (ADI): ADI position is now at 3.62% 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. There was a stake doubling this quarter at prices between ~$112 and ~$125. The stock currently trades at ~$142.Sensata Technologies (ST): The bulk of the 2.84% 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 seven quarters have seen only minor adjustments. The stock currently goes for $49.61.Note: Generation IM has a ~7% ownership stake in Sensata Technologies NV.Jones Lang LaSalle Inc. (JLL): JLL is a 2.49% 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 ~$150.Note: Generation IM has a ~9% ownership stake in Jones Lang LaSalle.Nutanix (NTNX): NTNX is a ~2% position established in Q2 2019 at prices between $24.50 and $43.50 and it is now at $29.73. There was a ~12% stake increase this quarter at prices between ~$20 and ~$29. Generation IM has a ~9% ownership stake in Nutanix.Trane Technologies plc (TT) previously Ingersoll-Rand plc: TT was a 2.16% portfolio position first purchased in 2015 at prices between $51 and $71. The position had wavered. Recent activity follows: 2019 saw a ~27% selling at prices between $93 and $135. Q1 2020 saw another ~18% reduction at prices between ~$71 and ~$147. The stock is now at $141. There was a ~63% stake increase last quarter at prices between $77 and $102. This quarter also saw a marginal increase.Equifax Inc. (EFX): The 1.71% EFX stake was purchased in Q1 2019 at prices between $91 and $115 and the stock currently trades well above that range at ~$180. 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. Last two quarters had seen another ~20% reduction while this quarter there was a ~8% stake increase.Acuity Brands (AYI), Applied Materials (AMAT), CBRE Group (CBRE), Microsoft Corporation (MSFT), Penumbra Inc. (PEN), Stericycle Inc. (SRCL), Waters Corp. (WAT), and Taiwan Semi (TSM): These small (less than ~2.5% of the portfolio each) positions were increased this quarter.Note 1: Generation IM controls ~8% of AYI.Note 2: Penumbra stock lost ~23% over the last month following fraud  by Quintessential Capital Management.Stake Decreases:Alphabet Inc. (GOOG): GOOG stake is currently at 4.25% 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 stock currently trades at ~$1784. Last four quarters saw the stake reduced by ~50% at prices between $1055 and $1728.Palo Alto Networks (PANW) and Trimble Inc. (TRMB): These medium-sized positions established in Q1 2020 were reduced this quarter. PANW is a ~4% of the portfolio stake purchased at prices between ~$133 and ~$250 and increased by one-third last quarter at prices between ~$163 and ~$240. The stock currently trades at ~$302. This quarter saw a ~6% trimming. TRMB is a 2.38% of the portfolio position purchased at prices between ~$21 and ~$46 and it currently goes for $63.24. This quarter saw a ~20% reduction at prices between $41.50 and $54.30.Aptiv plc (APTV) previously Delphi Automotive: APTV is a 3.25% position. It was first purchased in Q4 2016 at prices between $46 and $55. The stake has wavered. Recent activity follows: Q1 2019 saw a ~40% stake increase at prices between $60.50 and $82.50 and that was followed with another one-third increase next quarter at prices between $64 and $91. There was a ~15% stake increase in Q1 2020 at prices between $33.50 and $96. The stock currently trades at ~$124. Last quarter saw a ~7% further increase while this quarter saw similar trimming.Note: The prices quoted above are adjusted for the Delphi Technologies spinoff in November 2017.Texas Instruments (TXN): The vast majority of the 2.80% TXN stake was purchased in Q4 2018 at prices between $88 and $109. The stock currently trades at ~$163. Last four quarters had seen a combined ~20% selling and that was followed with a similar reduction this quarter at prices between ~$125 and ~$148.Thermo Fisher Scientific (TMO): TMO is a 2.77% 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 last year at prices between $221 and $327. Last three quarters have seen another ~42% selling at prices between ~$255 and ~$441. The stock currently goes for ~$461.Illumina Inc. (ILMN): ILMN is a 1.93% 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. The stock is now at ~$338. There was a ~30% selling last quarter at prices between $257 and $373. This quarter saw marginal trimming.Mercadolibre (MELI): The 1.19% MELI stake was established in Q2 2018 at prices between $285 and $356 and it now goes for ~$1537. The four quarters thru Q3 2019 had seen a ~42% selling at prices between $285 and $690. Last two quarters saw another ~70% reduction at prices between ~$447 and ~$1225. Generation IM is harvesting gains.Note: MELI had a previous round-trip: it was a very small 0.51% stake established in Q4 2017 at prices between $222 and $329 and disposed next quarter at prices between $315 and $414.Cerner Corporation (CERN): CERN is a 1.17% of the portfolio position. The stake was established in 2015 and doubled in Q1 2016 at prices between $52 and $60. The position has wavered. Recent activity follows: There was a ~50% stake increase in Q4 2019 at prices between $65 and $73.50 and that was followed with a ~15% stake increase next quarter. The stock currently trades at $74.41. Last two quarters saw a ~40% selling at prices between ~$61 and ~$75.Salesforce.com (CRM): The original CRM stake was established in 2016 at prices between $60 and $84. Q3 2019 saw a stake doubling at prices between $140 and $160. The stock currently trades at ~$221 and the stake is at ~1% of the portfolio. Last three quarters saw a two-thirds selling at prices between $124 and $281.Twilio Inc. (TWLO): TWLO is a 0.74% of the portfolio stake established in Q3 2019 at prices between $107 and $150 and increased by ~260% next quarter at prices between $91 and $117. The stock currently trades at ~$313. Last three quarters saw a ~85% reduction at prices between ~$72 and ~$284.A O Smith (AOS), Varian Medical Systems (VAR), and Workday Inc. (WDAY): These three small (less than ~1% of the portfolio each) stakes were reduced this quarter.Kept Steady:Huazhu Group (HTHT) and Microchip Technology (MCHP): These minutely small (less than ~0.25% of the portfolio each) stakes were kept steady during the quarter.Below is a spreadsheet that highlights the changes to Al Gore's Generation Investment Management 13F stock portfolio as of Q3 2020:Regulatory filings thru 8/28/2020: 13G – 6/12 – AYI – 2.47M shares – 6.2% of business."