"Tracking Al Gore's Generation Investment Management Portfolio – Q1 2020 Update"
"Generation Investment Management’s 13F portfolio value decreased from $15.64B to $14.09B this quarter.They added Palo Alto Networks, Gartner, & Trimble while dropping Credicorp, Automatic Data Processing, & Trane Technologies.The top three positions are Alphabet, Charles Schwab, and Baxter International and they add up to ~22% 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 05/15/2020. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q4 2019.This quarter, Al Gore’s 13F portfolio value decreased ~10% from $15.64B to $14.09B. The number of positions increased from 39 to 41. The top five stakes are Alphabet, Charles Schwab, Baxter International, Cognizant Technology, and Dentsply Sirona. They account for around one-third 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:Palo Alto Networks (PANW), Gartner Inc. (IT), and Trimble Inc. (TRMB): These are medium-sized new positions established during the quarter. PANW is a ~3% of the portfolio stake purchased at prices between ~$133 and ~$250 and the stock currently trades at ~$227. The 2.81% of the portfolio IT stake was established at prices between ~$83 and ~$164 and it is now at ~$131. TRMB is a 2.56% of the portfolio position purchased at prices between ~$21 and ~$46 and it currently goes for ~$43.Note: Regulatory filings since the quarter ended show them owning 4.63M sharers (5.2% of the business) of Gartner Inc. This is compared to 3.98M shares in the 13F report. Generation IM is continuing to build the position.Varian Medical Systems (VAR), A O Smith (AOS), and Workday Inc. (WDAY): These are small (less than ~1.3% of the portfolio each) new positions established this quarter.Stake Disposals:Credicorp Ltd. (BAP): BAP was a ~2% of the portfolio position established in Q2 2017 at prices between $152 and $183 and increased by ~22% in the following quarter at prices between $179 and $213. The four quarters thru Q3 2018 had seen a combined ~44% increase at prices between $192 and $236. Q1 2019 saw a ~18% selling at prices between $222 and $251. The elimination this quarter was at prices between ~$124 and ~$220. The stock is now at ~$155.Automatic Data Processing (ADP): ADP was a 1.55% portfolio stake purchased in Q4 2017 at prices between $109 and $119 and increased by ~160% next quarter at prices between $108 and $124. The four quarters thru Q3 2019 had seen a ~50% selling at prices between $122 and $173. That was followed with another one-third selling last quarter at prices between $156 and $172. The disposal this quarter was at prices between ~$109 and ~$181. The stock is now at ~$150.Deere & Co. (DE): DE was a large top five 5% portfolio stake as of Q3 2019. The position was from 2015 at prices between $75 and $97. There was a two-thirds reduction over the first three quarters of 2017 at prices between $103 and $132. Q1 2018 saw another ~41% selling at prices between $148 and $172. The position was rebuilt over the next three quarters at prices between $131 and $162. Q3 2019 saw a ~11% trimming and that was followed with a ~85% reduction last quarter at prices between $163 and $180. The small remainder stake was disposed this quarter. The stock is now at ~$161.Amazon.com (AMZN): The very small 0.52% of the portfolio position in AMZN was sold during the quarter.Stake Increases:Charles Schwab (SCHW): SCHW is a large (top three) ~9% 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. Last six quarters have also seen a ~180% stake increase at prices between ~$30 and ~$50. The stock is now at $41.68.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) 5.86% of the portfolio stake established last quarter at prices between $76.50 and $88.50 and increased by ~50% this quarter at prices between ~$72 and ~$93. The stock currently trades at $88.63.Cognizant Technology (CTSH): The large (top five) 5.28% of the portfolio CTSH stake was purchased in Q2 2019 at prices between $57 and $75. There was a ~42% stake increase over the last two quarters at prices between $58.75 and $66.50. The stock currently trades near the low end of those ranges at $55.60. This quarter also saw a ~7% further increase.Dentsply Sirona (XRAY): XRAY is a large (top five) ~5% portfolio stake built in 2014 at prices between $44 and $56. The position has wavered. Recent activity follows: Q1 2018 saw a ~18% stake increase and that was followed with a ~65% increase next quarter at prices between $42 and $51. Q3 2018 saw another ~25% increase at prices between $37.50 and $48.50. The stock currently trades at ~$48. Q2 2019 saw a ~20% selling at prices between $49 and $59 while this quarter there was a ~15% stake increase at prices between ~$32 and $61.Note: Generation IM has a ~8% ownership stake in Dentsply Sirona.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 this quarter there was a similar increase at prices between ~$43 and ~$74. The stock is now at $63.28 and the stake at ~5.75% of the portfolio. Generation IM has a ~9% ownership stake in Henry Schein.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 3.54% 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 ~$314. The first three quarters of last year had seen a ~53% selling at prices between $246 and $342. This quarter saw a ~18% stake increase at prices between $243 and $360.Jones Lang LaSalle Inc. (JLL): JLL is a 3.44% 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 ~$117.Note: Generation IM has a ~9% ownership stake in Jones Lang LaSalle.TE Connectivity (TEL): TEL is a medium-sized 3.37% position purchased in Q4 2018 at prices between $71 and $87. Last quarter saw a ~18% stake increase at prices between $85.50 and $96 and that was followed with a ~40% increase this quarter at prices between $53 and $100. The stock currently trades at $88.82Illumina Inc. (ILMN): ILMN is a 3.25% of the portfolio position purchased last quarter at prices between $288 and $336 and increased by ~185% this quarter at prices between $209 and $336. The stock is now at ~$358.Becton Dickinson (BDX): The 2.80% BDX position was built this quarter at prices between $201 and $286. The stock currently trades at ~$244.Sensata Technologies (ST): The bulk of the 2.51% 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 five quarters have seen only minor adjustments. The stock currently goes for $39.29.Note: Generation IM has a ~7% ownership stake in Sensata Technologies NV.Aptiv plc (APTV) previously Delphi Automotive: APTV is a 2.38% 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 this quarter at prices between $33.50 and $96. The stock currently trades at $83.69.Note: The prices quoted above are adjusted for the Delphi Technologies spinoff in November 2017.Cerner Corporation (CERN): CERN is a 2.33% of the portfolio position. The stake was established in 2015 and doubled in Q1 2016 at prices between $52 and $60. Q4 2016 also saw another ~50% stake increase at prices between $47 and $62. There was a ~37% selling in Q4 2017 at prices between $64.50 and $73.50 and that was followed with a one-third reduction next quarter at prices between $56.50 and $73. The four quarters thru Q3 2019 had also seen a ~60% selling at prices between $49 and $76. Last quarter saw an about turn: ~50% stake increase at prices between $65 and $73.50 and that was followed with a ~15% stake increase this quarter. The stock currently trades at $71.37.Huazhu Group (HTHT), CBRE Group (CBRE), Microchip Technology (MCHP), Penumbra Inc. (PEN), and Waters Corp. (WAT): These small (less than ~1.5% of the portfolio each) stakes were increased during the quarter.Stake Decreases:Alphabet Inc. (GOOG): GOOG is currently the largest position at ~8.25% 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 ~$1412. Last two quarters have seen a combined ~12% trimming.Thermo Fisher Scientific (TMO): TMO is a 3.85% 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. The stock currently goes for ~$348. This quarter also saw a ~7% trimming.Texas Instruments (TXN): The vast majority of the 3.38% TXN stake was purchased in Q4 2018 at prices between $88 and $109. The stock currently trades at ~$129. Last three quarters have seen a combined ~17% trimming.Mercadolibre (MELI): The 2.30% MELI stake was established in Q2 2018 at prices between $285 and $356 and it now goes for ~$840. The four quarters thru Q3 2019 had seen a ~42% selling at prices between $285 and $690. Generation IM is harvesting gains. There was a ~5% trimming this quarter.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.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 ~$171 and the stake is at 1.94% of the portfolio. This quarter saw a ~15% trimming.Equifax Inc. (EFX): The 1.88% EFX stake was purchased in Q1 2019 at prices between $91 and $115 and the stock currently trades well above that range at ~$177. 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 quarter saw a ~7% stake increase while this quarter there was a similar reduction.Analog Devices (ADI): ADI position is now at 1.76% 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. The stock currently trades at ~$122. There was a marginal reduction this quarter.Nutanix (NTNX): NTNX is a 1.57% position established in Q2 2019 at prices between $24.50 and $43.50 and it is now below that range at $24.28. This quarter saw a ~4% trimming. Generation IM has a ~8% ownership stake in Nutanix.Twilio Inc. (TWLO): TWLO is a 1.45% of the portfolio stake established in Q3 2019 at prices between $107 and $150 and increased by ~260% last quarter at prices between $91 and $117. The stock currently trades at ~$193. This quarter saw a one-third selling at prices between ~$71 and ~$132.Trane Technologies plc (TT) previously Ingersoll-Rand plc: TT was a ~2% portfolio position first purchased in 2015 at prices between $51 and $71. The position had wavered. Recent activity follows: Last year saw a ~27% selling at prices between $93 and $135. This quarter saw another ~18% reduction at prices between ~$71 and ~$147. The stock is now at $95.54.Acuity Brands (AYI), Applied Materials (AMAT), Microsoft Corporation (MSFT), NVidia Corp (NVDA), SPDR Trust (SPY), Stericycle Inc. (SRCL), and Taiwan Semi (TSM): These small (less than ~1% of the portfolio each) positions were reduced this quarter.Note: Generation IM controls ~5% of AYI.Kept Steady:None.Below is a spreadsheet that highlights the changes to Al Gore's Generation Investment Management 13F stock portfolio as of Q1 2020:Regulatory filings thru 02/25/2020: 13G/As – 2/14 – XRAY – 16.22M shares – 7.3% of business, ST – 11.7M shares – 7.4% of business, NTNX – 14.53M shares – 8.3% of business, JLL – 4.78M shares – 9.3% of business, HSIC – 10.3M shares – 7% of business, COO – 1.53M shares – 3.1% of business, AY – 1.94M shares – 4.9% of business."