- TCI’s revenues rose to about $1.02bn in the year to March 31, 2025, enabling an $81.6m dividend payout to an entity linked to founder Chris Hohn.
- Charitable giving nearly doubled to roughly $796.6m, with most flowing to the Children’s Investment Fund Foundation.
- The fund returned about 27% net in 2025, boosted by aerospace and defense holdings such as GE Aerospace, Airbus and Safran, and it manages nearly $80bn.
- TCI’s strong year mirrored a broader 2025 rebound in equity hedge funds, with many posting 20%–40%+ gains and average returns above 15% through November.
Read More
The recent disclosures from TCI Fund Management, led by Sir Chris Hohn, reveal a year of exceptional performance and financial flows. From 1 April 2024 to 31 March 2025, revenues surged to approximately $1.02 billion, up from $844.17 million, enabling the firm to pay an $81.6 million dividend to an entity within Hohn’s business group. This dividend, while large, is modest relative to the firm’s earnings—and appears to follow a pattern: previous dividends were $53 million in 2024 and $346 million in 2023—indicating fluctuation tied to fund profitability and possibly pay-out policy.
TCI’s charitable donations also rose dramatically to around $796.6 million in that period, nearly doubling the prior year’s figure. Most of these grants were directed to CIFF, its main charitable arm, reflecting Hohn’s longstanding commitment to philanthropy. However, the scale of donations now approaches a level that rivals the retained earnings or distributions to Hohn himself, suggesting a two-pronged strategy: significant profit-taking combined with aggressive charitable contributions, positioning both for personal wealth and impact footprint.
On performance, TCI delivered a 27% net return in 2025, driven largely by shareholder exposure to aerospace and defense equities (GE Aerospace, Airbus, Safran). That level of return significantly outperformed major benchmarks (e.g. S&P 500 and Stoxx Europe 600). TCI’s assets under management are nearly $80 billion, placing it among the largest equity hedge funds globally.
The broader industry context confirms that 2025 was unusually strong for equity hedge funds: average returns exceeded 15% through November; standout funds like High Ground (39.4%) and Pershing Square (20.9%) also achieved substantial gains. Strategies such as Equity Hedge, Event-Driven, and value-oriented trades led the pack. This trend reflects both favorable market conditions (e.g. strong gains in aerospace, defense, and industrials) and broader investor demand for hedge fund exposure amid volatility.
Strategically, TCI’s model—high conviction sector bets, activist positioning (especially in industrial/aerospace companies), and a dual focus on shareholder returns plus philanthropy—continues to pay off. However, several open questions emerge. What controls Hohn employs to determine dividend size vis-à-vis retained earnings and reinvestment? How sustainable are these returns when market conditions are less favorable, particularly given the concentration in sectors tied to defense/industrial policy? Also, philanthropic commitments at this scale may expose the firm to regulatory, reputational, and strategy-alignment risks, especially as global policy environments shift.
Supporting Notes
- TCI’s turnover rose to approximately $1.02 billion for fiscal year ending 31 March 2025, up from $844.17 million in prior year.
- Dividend paid to a group-related entity under Hohn’s control was $81.6 million; prior year dividends were $53 million (2024) and $346 million (2023).
- Charitable donations increased to roughly $796.6 million, nearly double the previous year’s level.
- Net return for TCI was about 27% in 2025, outperforming S&P 500 and Stoxx Europe 600 benchmarks; major contributors were aerospace and defense stocks.
- TCI’s assets under management stood at nearly $80 billion entering 2026.
- Equity hedge funds more broadly averaged returns exceeding 15% through November 2025; standout performers included High Ground (+39.4%) and Pershing Square (+20.9%).
- Strategies such as Equity Hedge and Event-Driven led in 2025; performance dispersion was wide among hedge funds.