Everyone knows that Berkshire Hathaway and Duan Yongping's portfolios are highly concentrated (in terms of the number and percentage of their top holdings), and their excess returns stem from this concentrated portfolio. Another lesser-known hedge fund, TCI Fund Management, managed by Chris Hohn, also has an extremely concentrated portfolio. It holds only nine US stocks, with the top six holdings accounting for 93% of its portfolio. With over $50 billion in assets under management, it achieved a return of $18.9 billion in 2025, setting a record for the highest single-year profit in hedge fund history. Since its inception in 2004, this fund has achieved an annualized return of 18%. Thanks to its explosive growth over three consecutive years from 2023 to 2025 (accumulating $40 billion in profits), TCI jumped from 14th to 5th place on the list of "Most Profitable Hedge Funds of All Time" (LCH Investments ranking), trailing only Citadel, Bridgewater, D.E. Shaw, and Millennium. Because Hohn's portfolios are extremely concentrated (usually only around 10 stocks), his performance is often highly volatile, with holding periods generally exceeding 8 years. You don't even need to analyze it closely to find that his holdings are primarily "leading" monopolistic companies in their respective industries, possessing very strong competitive advantages and pricing power. GE Aerospace (GE): The global "tax collector" of civil aviation engines, generating long-term cash flow through monopolistic engine sales and decades of high-margin after-sales maintenance and repair. Visa (V): The tollbooth of global digital payments, extracting a very small percentage of clearing fees from every cross-border and domestic transaction passing through its network. Microsoft (MSFT): The underlying operating system for enterprise productivity, building a highly sticky subscription ecosystem through irreplaceable Office software, Azure cloud computing, and AI interfaces. Moody's (MCO): "Entry permits" in the financial markets, charging credit rating fees to bond issuers through franchise rights; a typical asset-light, high-pricing-power business. S&P Global (SPGI): A goldmine of financial data, charging hefty licensing fees to global asset management firms not only for credit ratings but also for compiling indices (such as the S&P 500). Canadian Pacific (CP): North America's only transnational rail transport artery, leveraging scarce land use rights and infrastructure to possess an absolute cost advantage in long-distance commodity transportation. Alphabet (GOOGL): The gatekeeper of global internet traffic, converting user attention into highly targeted advertising revenue through its monopolistic search engine. Canadian National (CNI): A rail network connecting three oceans (Atlantic, Pacific, and Gulf of Mexico), possessing a natural transport monopoly in specific geographic regions. Ferovial (FER): A global franchised infrastructure operator focused on investing in and managing toll roads, airports, and energy infrastructure with high cash flow returns.

Concentrated holdings hype