Chris Hohn’s hedge fund, TCI, delivered an estimated $18.9 billion in net gains in 2025, marking the largest single-year profit ever for a hedge fund. The gain was driven largely by big bets on defense and aerospace stocks like GE Aerospace (GE) and Safran SA (SAFRY), and which rallied as investors bet on rising global military spending amid geopolitical tensions. The fund also held major positions in Microsoft (MSFT), reflecting high-growth tech bet.
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For context, TCI (The Children’s Investment Fund) is a London-based hedge fund founded by Chris Hohn in 2002. According to Edmond de Rothschild, TCI managed about $77 billion in assets, boosting its gains. In comparison, Ray Dalio’s Bridgewater Associates earned $15.6 billion in 2025—the second-largest hedge fund gain—followed by D.E. Shaw with $12.7 billion.
Let’s look at these stocks in detail.
GE Aerospace (GE)
As of September 2025, GE Aerospace was TCI’s largest holding, making up 23.09% of the portfolio and valued at about $14.2 billion. The bet paid off in 2025 as GE stock jumped about 80%, fueled by strong performance in its aerospace business.
Looking ahead, GE is set to report Q4 2025 earnings on January 22. Analysts expect earnings of $1.44 per share, up from $1.32 a year earlier. Ahead of the report, several analysts have raised their price targets while maintaining Buy ratings. UBS, for example, sees meaningful upside into 2026 and beyond, driven by strong margins, even as aftermarket growth begins to slow. UBS’ top-rated analyst Gavin Parsons raised his price target from $366 to $368, predicting over 13% upside.
Overall, GE stock has a Strong Buy consensus rating based on eight Buys and one Sell assigned in the last three months. At $348.33, GE Aerospace’s average stock price target implies a 7% upside potential.
Microsoft (MSFT)
As of September 2025, Microsoft was TCI’s second-largest holding, accounting for 16.5% of the portfolio. Although MSFT stock gained just 14% in 2025, its long-term growth potential remains strong.
Microsoft’s growth is driven by its dominant cloud business (Azure), recurring revenue from Office 365 and Windows. Strong financial performance and strategic investments further support a bullish case for MSFT stock.
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 32 Buys and two Holds assigned in the past three months. At the same time, average Microsoft price target of $631.36 per share implies 37.3% upside potential.
Safran SA (SAFRY) (FR:SAF)
Safran SA is a French aerospace and defense company best known for aircraft engines and aviation equipment. It is also a key partner with GE Aerospace through CFM International, which produces the widely used LEAP engines used on Airbus (EADSY) and Boeing (BA) jets. As of September 2025, Safran makes up about 12.51% of TCI’s portfolio. SAFRY stock surged nearly 60% in 2025, making it one of the fund’s strongest performers.
Looking ahead, Safran’s bullish case rests on its strong exposure to commercial aviation and defense, led by its partnership with GE. Rising global air travel, a growing backlog at Airbus and Boeing, and high demand for LEAP engines support long-term revenue growth, while Safran’s aftermarket services provide steady, high-margin cash flow.
On Wall Street, SAF stock is rated a Strong Buy, backed by 10 Buys and one Hold assigned over the last three months. Meanwhile, Safran’s average stock price target of €351.70, represents a potential 10% upside for the shares.
